Income Tax Appellate Tribunal - Delhi
Dcit Central Circle-14, New Delhi vs Sh. Vijay Kumar Soni, New Delhi on 6 September, 2024
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'H', NEW DELHI
Before Dr. B. R. R. Kumar, Accountant Member
Sh. Sudhir Kumar, Judicial Member
ITA No. 1883/Del/2023 : Asstt. Year : 2017-18
Bijay Kumar Soni, Vs DCIT,
C/o Anil Jain DD & Co., Central Circle-14,
611, Surya Kiran Building, 19, New Delhi-110055
K. G. Marg, New Delhi-110001
(APPELLANT) (RESPONDENT)
PAN No. AOLPS5917H
ITA No. 2144/Del/2023 : Asstt. Year : 2017-18
DCIT, Vs Bijay Kumar Soni,
Central Circle-14, 61/14, Block No. 61, Ram Jas,
New Delhi-110055 Karol Bagh, New Delhi-110005
(APPELLANT) (RESPONDENT)
PAN No. AOLPS5917H
Assessee by : Sh. Anil Jain, CA
Revenue by : Ms. Monika Dhami, CIT-DR
Date of Hearing: 01.08.2023 Date of Pronouncement: 06.09.2023
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by the assessee and the Revenue ag ainst the order of ld. CIT(A)-26, New Delhi dated 30.05.2023.
2. At the outset, the asse ssee submitted that the case of the assessee for the assessment year before us is barred by limitation.
2 ITA Nos. 1883 & 2144/Del/2023Vijay Kumar Soni
3. The facts are as under:
Da te of se arch in the case of Sh. Purus hottam Lal Soni - 16.12.2016 Da te of record ing of satisfaction - 26.03.2019 The assessment year involved - 2 017-18 Assessment has been co mpleted u/s 143(3) Da te of issue of notice u/s 153C - 27.03.2019 Da te of withdraw al of the said notice - 31.03.2019 (page no. 2 o f CIT(A) o rder)
4. From the above, it is fo und that the Assessing Officer tho ugh initiated proceedings u/s 153C and subsequently withdrawn the proceedings and the notice issued u/s 153C and initiated proceedings u/s 143(3) and completed the assessment u/s 143(3).
5. In this regard, the provisions o f Section 153C are as under:
"T i m e li m it f o r c o m ple t io n o f a ss e s s m e nt , re as s es s m e nt a nd re - c om p u ta t i o n .
153 . ( 1 ) N o o rd e r o f a s s e s sm e nt s ha ll be m a d e und er s e c tio n 143 o r s e c t io n 14 4 a t an y t i me af t e r t he exp iry of t w ent y - o ne mo n t hs f r om the e nd of t he a s s es s m en t yea r in w h ic h t he inc o m e was f irs t a s s es s a b l e :
Pr o v id e d t hat in re s pec t of a n o rd e r of as s es s m e nt r el at i ng t o th e a s s es s m ent y e a r c o mm e nc in g o n t he 1 s t da y o f Ap r il, 20 1 8 , th e p r o v is i ons o f t his s ub -s e c t io n s h all ha v e ef fec t , a s if fo r t he wo r ds "t w e nt y -o n e m o n t hs " , t h e w o rds " e i ght e e n m o nt hs " h ad be en s ubs t i t ut ed :
[P r ov id e d f ur t he r t ha t in re s p ec t o f an or d er of a s s es s m en t r e la t in g t o t he a s s es s m ent y e a r c om m e nc ing o n --3 ITA Nos. 1883 & 2144/Del/2023
Vijay Kumar Soni ( i ) t h e 1s t d a y o f A pr i l, 2 0 19 , t h e p r ov is io ns o f t h is s ub -s e c tio n s ha ll ha v e ef f ec t , a s if f o r t h e w ord s " t w ent y -o n e m o nt hs " , th e wo r ds "t w e lv e m o nt hs " ha d b e en s ubs t i t ut e d ;
(ii ) t he 1 s t d a y o f Ap ril , 20 2 0 , t he p r ov i s io ns o f t h is s ub -s e c tio n s ha ll ha v e ef f ec t , a s if f o r t h e w ord s " t w ent y -o n e m o nt hs " , th e wo r ds " e ight e en m ont hs " h ad b ee n s ub s t it ut e d : ] [P r ov id e d a ls o t ha t in r es p ec t of a n o rd er o f as s e ss m e nt r e la t in g to t h e a s s es s m e nt y e a r c om m enc i n g o n 38 [* * * ] t he 1s t d ay of Ap r il , 20 2 1, t h e p r ov is io ns of t h is s ub - s ec t i on s ha ll h av e e ffe c t , as if for t he w or ds "t w e nt y - o ne m o nt hs " , t he words " nin e mo n t hs " ha d b e en s ubs t i t ut ed : ] [P r ov id e d a ls o t ha t in r es p ec t of a n o rd er o f as s e ss m e nt r e la t in g to t h e a s se s s m e nt y ea r c om m e nc in g o n o r a ft e r t h e 1s t d ay o f Ap r il , 20 2 2, t h e p r ov is io ns of t h is s ub - s ec t i on s ha l l h av e e ffe c t , as if fo r t he w or d s "t we nt y-o n e m o nths ", t he w o rds "t w e lv e mo n t hs " ha d b e en s ubs t i t ut ed . ] 40 [ (1 A) N ot w it hs ta nd i n g a ny t h i ng c o nt ai n ed i n su b -s ec t io n (1 ), w h er e a re t ur n un d er s u b -s e c t io n (8 A) of s ec t io n 139 is f ur n is hed , a n or d er o f a s s es s m e nt u n d e r s ec t i o n 14 3 o r s ec t io n 144 ma y b e m a d e a t a n y t im e b e fo r e the ex p ir y o f 4 1 [t w e lv e ] mo n t hs f r om t he en d o f th e f i na nc ia l y ea r i n w h ic h s uc h r et ur n wa s f ur nis h ed . ] (2 ) N o or d e r o f a s s es s m en t, r ea s s es s m ent o r r ec o m p ut a t io n s ha ll b e m a d e u nd er s ec t io n 1 4 7 a ft er t he e xp i ry o f nin e m o nt hs f rom t he e nd of t he f ina nc ia l ye ar i n w h ic h t he no t ic e u nd e r s ec t i on 1 48 wa s s e r v ed :
Pr o v id e d t hat w he re t he n ot ic e und e r s e c t io n 1 4 8 is se rv e d on o r aft er t he 1s t da y o f Ap r il, 20 1 9 , t h e p ro v is io ns o f t his s ub - s ec t i on s ha ll ha v e eff ec t , as i f fo r t he w o r ds " n i ne m o nt hs " , t h e wo r ds "t w e lv e m o nt hs " ha d b e en s ubs t i t ut e d .
(3 ) N ot w it hs t a nd ing a n yt h in g c o nt a in e d in s ub -s ec t io ns (1 ) 4 2 [, (1 A ) ] a nd (2 ) , a n or d e r of fr es h a s s es s me nt 43 [ or fr es h or d e r 4 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni und er s ec t io n 9 2 C A , as t h e c as e m a y be, ] in p u rs ua nc e o f a n o rd e r u nd er s ec t io n 2 5 4 o r s ec t io n 2 6 3 o r s ec t io n 26 4 , s et t in g as i d e or c a nc el li n g an a ss e s s m e nt , 43 [ o r a n o r d e r und er s ec t io n 92 CA , as t h e c a s e m a y b e ], m ay b e m ad e at a ny t im e b ef o r e t he ex p ir y o f n ine m o nt hs fro m t he e nd of t he f ina nc ia l y e ar in w h ic h t h e o rd e r un der s ec t i on 2 54 is r ec e iv e d by t he P r inc ip a l C hie f Co mm is s io n e r or C hi e f C o mm is s io n er or Pr inc ip a l C om m is s i one r o r C om m is s i o ne r or , as th e c as e ma y b e, the o rd e r un d er s ec t ion 263 or s ec t i o n 26 4 is p as s ed by t he 44 [P r i nc ipa l C h ief Co m m is s io ne r or C h ief Co m m is s io ne r or Pr i nc ip a l C om m is s ion e r o r Co m m is s io ne r, as t h e c as e ma y be ] :
Pr o v id e d t ha t w he re th e o rd e r und er s e c t ion 2 54 is rec eiv e d by th e P r in c i pa l C hie f C om m is s io ne r or Chi e f C o mm i ss i o ne r or Pr i nc ip a l Co m m is s i o ne r o r Co m m is s i o ner o r , as t he c as e m a y b e, th e o rd er u nd e r s e c t io n 2 63 or s ec t io n 2 6 4 is pas s ed b y t he 44 [P r i nc ipa l C h ief Co m m is s io ne r or C h ief Co m m is s io ne r or Pr i nc ip a l Co mm is s io n er o r C o m m is s io n e r , a s t he c as e ma y b e, ] o n o r af t er t he 1 s t da y o f Ap r il , 2 0 19 , t he p r ov is i o ns o f t h is s ub -
s ec t i on s ha ll ha v e eff ec t , as i f fo r t he w o r ds " n i ne m o nt hs " , t h e wo r ds "t w e lv e m o nt hs " ha d b e en s ubs t i t ut e d .
45 [ (3 A) N o t w it hs t a nd ing a n yt hi ng c on t a ine d i n s ub -s ec t io ns ( 1 ), (1 A ) , (2 ) a n d (3 ) , wh er e a n as s es s m en t o r r eas s es s m en t is pe nd i n g on t h e d at e of i n it i at io n o f se a rc h u nd e r s ec t i on 1 32 o r ma k i ng o f r eq u is it i o n u n d e r s ec t i o n 1 3 2 A , t h e p e rio d av a ilab le f or c o m p let i o n o f a s s es s m e nt o r r e as s e s s me nt , as t h e c as e m a y be , und e r t h e s a id sub -s ec t io ns s ha l l,--
(a ) i n a c a s e w he re s uc h s ea r c h is i ni tia t ed u nd e r s ec t io n 1 3 2 o r s uc h r eq uis it io n i s m a d e und e r s ec t io n 1 3 2 A ;
(b ) i n t he c a s e of a n as s es s e e , t o w h om any mo n e y, b ulli o n, j ew e l le ry or ot h er v a lua b le a rt ic le or t hin g s e iz ed or r eq ui s i t io n ed b e lo ng s to ;
5 ITA Nos. 1883 & 2144/Del/2023Vijay Kumar Soni (c ) in t he c as e of a n a ss e s s ee , t o w ho m a ny b o ok s o f ac c o unt o r d oc um e n t s s e i z ed o r r eq uis it i on ed p e rt a ins o r p e rt ai n to , o r an y i nfo rm a t io n c o nt a ine d t he r ei n, r ela t e s t o , be e xt e nd e d b y t w el v e m ont hs . ] (4 ) N ot w it hs t a nd i n g a n yt hi n g c on t a ined in 4 6 [s ub -s ec t io ns (1 ) , (1 A ) , (2 ), (3 ) a nd (3 A) ], w her e a r ef er en c e und er s ub -s e c tio n (1 ) o f s ec t io n 9 2 C A is m ad e d u r i ng t he c ou rs e of t h e p roc eed in g f or t he a s s es s m e nt or r e as s es s m ent , t he p e ri od av a i lab le fo r c om p l e t i o n o f a s s es s me nt o r r eas s es s m ent , a s t he c as e m a y b e, und er t he s a id 46 [s ub -s ec t io ns (1 ) , (1 A ), (2 ), (3 ) a nd (3 A)] , s ha ll be e xt en d ed b y t w e lv e m o nt hs .
(5 ) W he r e ef fe c t to a n o rd e r und er se c t io n 25 0 o r s e ct io n 2 54 o r s ec t i on 2 60 o r s ec t io n 26 2 o r s ec t io n 2 63 o r s ec t io n 2 6 4 is t o b e giv en b y t h e As s e s s in g O f f ic e r 47 [o r t he T ra ns fe r P r ic in g O f fic e r, as th e c as e ma y be, ] w h oll y o r pa rt ly , o t he rw is e th a n by m ak in g a f r es h a s s e s s me nt o r r eas s es s m ent 4 7 [o r f r es h o r d e r und e r s ec t i on 9 2 CA, a s t h e c as e m a y b e ], s u c h e ff ec t s h all b e g i ve n w it hin a p e r io d o f t h re e m o nt hs f ro m t h e e nd o f t he m o nt h in w h ic h o rd e r u nd e r s ec t i on 250 or s ec t io n 25 4 o r s ec t io n 2 6 0 o r s ec t i on 2 62 is r ec ei v ed b y t h e P r inc ip a l C h i ef C o mm iss i o ne r o r C hie f Co m m is s io n e r o r P ri nc ip a l Co m m i s s i one r o r C o mm iss io ne r , as the c a s e m a y b e , the o rd er un d e r s ec t i o n 2 6 3 o r s ec t i on 26 4 is pa s s ed by t he 48 [ Pr inc ip a l C h ie f C om m is s i on er or C h i ef C om m is s i one r o r P r inc ip a l C o m m is s io ne r o r C om m is s io n e r , as th e c a s e m a y b e ] :
Pr o v id e d t ha t w h er e it is no t p os s ib le fo r t he As s es s i n g O ff ic e r 47 [ o r t h e Tr a ns f er Pr ic ing Of f ic er , as t he c as e m ay b e , ] t o g i v e eff ec t t o s uc h o rd er w it hin t he a f o re s ai d p er iod , f o r re a so ns be y o nd his c o nt r o l, th e P r inc ip a l C o m m i s s io ne r o r Co m m is s io ne r o n r ec e ip t o f s uc h r eq u es t i n w r it ing fr om t he As s es s ing O ff ic er 47 [ o r t h e Tr a ns fe r Pr ic ing O ff ic e r, a s t he c as e ma y b e ], if s at is fi ed , m a y a ll o w a n a dd it io nal p er iod of s ix m o nt hs t o g i v e eff ec t t o t he o rd er :6 ITA Nos. 1883 & 2144/Del/2023
Vijay Kumar Soni Pr o v id e d fu rt her t ha t w he re an o rd er un d e r s ec t io n 250 or s ec t i on 2 54 or s ec t io n 2 6 0 or s ec t i on 26 2 o r s e ct io n 2 6 3 o r s ec t i on 264 r eq uir es v e r if ic at i o n of a ny is s ue by way of s ub m is s io n of any d oc u me nt by the as s e s s e e or a ny ot he r pe rs o n o r w he r e a n op p or t u nit y of b ein g he a rd is t o b e p r o v id ed to t he as s e ss e e, t he or d e r g iv i n g e f fec t to t h e sa id or d er und e r s ec t i on 2 50 or s ec t io n 2 5 4 or s ec t i on 26 0 o r s e ct ion 2 6 2 o r s ec t i on 263 or s e c tio n 2 64 s h all be m ad e w it h in t he t im e s pec i fied in s u b -s ec t io n (3 ) .
49 [ (5 A) W h er e t he T r a ns fe r P ri c i ng O ff ic er giv es eff ec t to a n o rd e r or d ir ec t io n und e r se c t i o n 2 63 b y a n o rd e r u nd e r s ec t io n 92 CA a nd f o rw a rd s s uc h o rd er t o t h e As s es s i ng O f fic e r , t he As s es s in g Of fi c e r s ha ll p r o c e ed to m o d ify the o rde r of as s e s s m e nt o r r ea s s es s m e n t o r r ec o mp uta t i o n, in c o n fo rm ity w it h s uc h o rd e r of t he T r a ns fe r P r ic in g O ff ic e r, w it h in two mo n t hs f r o m t h e en d of t h e m o n t h in w hi c h s uc h or d er of t he T r a ns f e r Pr ic in g O ff ic e r is re ce iv ed b y him . ] (6 ) N ot h ing c o n ta ine d in s ub -s ec t io ns (1 ) 50 [ , (1 A )] a n d ( 2 ) s ha ll a p p ly to the f o llo w i n g c la s s e s of ass e s sm e nt s , r eas s e ss m ents a n d re c om p uta t i o n w h ic h ma y, s ubj ec t t o t he pr ov is i ons o f 51 [s ub -s ec t io ns (3 ), ( 5 ) a nd (5 A )], b e c om p l et ed --
(i ) w he r e t h e as s es s m ent , r e as s es s me nt o r r ec o mp ut a t io n is ma d e o n t he a s s es s e e o r a ny p e rs o n i n c o ns eq ue nc e o f or t o giv e e ffec t t o a ny f ind ing o r d ir ec t io n c o nt a ined i n a n or d e r und er s ec t ion 2 50 , s ec t io n 25 4 , s e c tio n 26 0 , s ec t i on 262, s ec t i on 26 3 , o r s ec t io n 2 6 4 or in a n o rd e r o f a ny c o ur t in a pr oc e ed i n g ot h er w is e t ha n by w a y o f a pp ea l o r r ef e r enc e u nd e r th is Ac t , o n or b ef o r e t he e xp i ry o f tw el v e m o nt hs fr om t he e n d o f t he m o n t h i n w h ic h s uc h o rd er is r ec e ive d o r p as s ed b y the 52 [P r i nc ipa l C hie f Co mm is s io ne r or Ch ief Co m m iss io ne r or ] Pr i nc ip a l C om m is s ion e r o r Co m m is s io ne r, as t h e c as e ma y be ; or ( i i) w he r e, in t he c as e of a fir m, a n as s es s m e nt is ma d e on a pa rt ner o f t h e fi rm in c o ns e q u e nc e o f a n a ss es s m e nt m ad e o n th e f irm u nd e r s ec t i on 1 4 7, o n o r b e fo re t he e xp ir y of t w e lv e 7 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni mo n t hs f r o m t h e end o f t h e mo nt h i n w hic h t h e a s s es s m ent o rd e r in t h e c as e of t he fi r m is pa s s e d .
(7 ) W h er e e ff ec t t o an y o r d e r , f ind i ng o r d ire c t io n r efe r r ed t o in s ub -s e c t i o n (5 ) or s ub -s ec t io n (6 ) is to be gi v e n by th e As s es s in g Of f ic er , w it h in t he t im e s p ec if ied in t he s a id s ub - s ec t i ons , a n d s uc h ord er h as b e en re c ei v ed o r pa s s ed , a s the c as e m ay b e, b y th e inc o m e -ta x au th o rit y s p ec i f ied t he re in be fo r e t he 1s t d ay of J un e , 20 1 6, t he As s es si ng Of f ic er s ha ll giv e e ffec t to s uc h o rd e r , f i n d i ng or d i re ct i o n, or as s ess , r eas s e ss o r re c o mp ut e t he inc o m e o f th e as s es se e , o n o r be f or e th e 31 s t d a y of Ma r c h, 2 0 1 7 .
(8 ) N ot w it hs t a nd in g a n yt hi n g c o nt ai ned in t he f o r eg o in g pr ov is i ons of t his s ec t io n, s ub -s ec t io n ( 2 ) o f s ec t i on 1 5 3 A o r s ub -s e c t i o n (1 ) o f s ec t i o n 1 5 3 B , t h e o rd e r o f as s es s m e nt o r r eas s e ss m ent , re la t in g t o a ny as s es s me nt yea r , w hic h st an ds r ev i v ed u nd e r s ub - s ec t io n (2 ) of s ec t i on 15 3 A, s ha ll b e m ad e w it hin a p er iod o f o n e y ea r f ro m t h e e nd o f t he m o nt h o f suc h r ev i v a l or w it h in t he p e ri od s p ec if ied in t his se c t io n o r s ub - s ec t i on ( 1 ) of s ec t io n 1 5 3 B , w h ic h e v er is lat e r .
(9 ) T he p r o v is ion s of t his s ec t io n as t he y s t oo d i mm ed iat ely be fo r e t he c om me nc e me nt o f the F ina nc e Ac t, 20 16 , s hal l a pp ly to a n d i n re lat io n t o a n y o rd e r o f as s e s s me nt , r ea s sess m ent o r r ec omp ut at io n m a d e b e fo re t he 1 s t da y o f Jun e, 20 1 6 :
Pr o v id e d t hat w h er e a no t ic e u n d e r s ub -s ec t io n ( 1 ) o f s ec t io n 142 or s u b -s e c t io n (2 ) of s ec t i on 1 43 o r s e ct io n 148 has b e e n is s ue d p r io r t o t he 1s t d a y o f J u ne , 20 1 6 and t he a s s es s m e nt o r r eas s e ss m ent ha s no t b e e n c omp l et e d b y s uc h da t e d u e t o ex c lus io n o f t i m e r e fe rr ed t o in Exp la na ti o n 1 , s uc h a s s es s m en t or re a s s e s s me nt s ha ll be c om p le t ed in ac c o rd a nc e w it h the pr ov is i ons o f t his s ec t io n as it s t o od im m ed i at ely b e fo re its s ubs t it u t io n by t h e Fi na nc e Ac t , 20 1 6 (28 o f 2 01 6 ) .
Ex p la na t io n 1 . --F o r t he p ur p os es o f t his s ec t i o n, in c om pu t in g th e p e r io d o f li m it a t i o n--
8 ITA Nos. 1883 & 2144/Del/2023Vijay Kumar Soni (i ) t h e t i m e t a k e n in re op en ing t he w ho le o r a n y pa rt of t he pr oc e ed i n g o r in giv ing a n op p o r t u ni t y t o t he as s es s ee t o b e r e - he a r d un d er t he p r o v is o t o s ec t io n 12 9 ; or ( i i) t he p er io d d ur ing w hi c h the a s s es s m en t p r oce e d i ng is s ta y ed b y a n o rd e r or in j unc t i on of a ny c ou rt ; or (ii i) t he p e ri od c om m e nc in g fr om t he d at e on w h ic h t he As s es s in g Off ic er int ima t es the Ce n t r al G ov e r nm ent or t he pr es c r ib ed a ut h or it y , the c o nt r a v e nt i on of t he p r ov is io ns of c la us e (21 ) o r c la us e (22 B ) o r c la us e (2 3 A ) o r c la us e (23 B) 5 3 [, und er c la us e (i ) of the f irs t p r o v is o ] t o s u b -s ec t i o n ( 3) of s ec t i on 1 43 a nd e ndin g w it h t h e d at e o n w hic h t he c op y o f t h e o rd e r w it hd r a w i ng t he a p p r o v a l or r es c ind i ng t he n ot ific at i o n, as th e case may be, un d er t ho s e c la us es is re ce iv ed by t he As s es s in g O ff ic er ; o r ( i v) t he p er io d c om m e nc ing fr om t he dat e on w h ic h th e As s es s in g O ff ic er dir ec t s the as s es s e e to get his ac c o unts au d it ed 5 4 [o r inv ent o r y v a lue d ] und e r s ub -s ec t i o n (2 A ) of s ec t i on 1 42 a nd--
(a ) en d in g w i t h t h e las t d at e o n w hic h t he a s s es s ee i s r eq u ir ed to fu r nis h a r ep o rt of s uc h au d it 5 4 [ o r i nv ent o ry v a lu at io n ] und er t ha t s ub -s ec t ion ; o r (b ) w h er e s uc h d i re c t i o n is c ha ll e n ge d b ef or e a c o ur t, end in g w it h t he d a t e o n w hic h t h e o rd e r s et t in g as id e s uc h d i rec t io n is r ec e iv ed b y t h e P r in c ip a l C o m m is s io ner o r Co m m is s io n er ; o r (v ) t he p e r io d c om me nc in g fr om t he d at e on w h ic h th e As s es s in g O f f ic er ma k es a r ef e r enc e to t h e Va lua t io n O ff ic e r und er s ub -s ec t io n (1 ) of s ec t io n 14 2 A an d e nd i ng w it h t he da t e o n w hic h t he re p o rt of t h e Va lua t io n O ff ic e r is r ec e iv ed b y t he As s es s in g O ff ic er ; or (v i) t he p e ri od ( not e xc ee d in g s ixt y d ay s ) c o mm e nc ing f ro m t he da t e on w h ic h t he As s es s in g O ff ic e r r ec eiv e d t h e d ec la r at i o n 9 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni und er s ub -s ec t io n (1 ) of s ec t io n 15 8 A an d e nd i ng w it h t he da t e o n w hic h t he o rd e r und e r s ub -s ec t io n (3) o f t ha t s ec t i on is m ad e by h im ; or (v ii) in a c a s e w h er e a n a pp li c at ion m ad e bef o r e t h e I nc om e-t a x Set t l em ent Co m m is s io n is r ej e c t ed b y it o r i s no t a ll ow ed to b e pr oc e ed e d w it h by i t, t h e p er i od c om m e nc ing fr om t h e d at e o n w h ic h a n a pp lic at io n is m ad e b e fo re t he Set t l em e nt Co m m is s io n und er s ec t io n 24 5 C a nd en d in g w it h t h e d at e o n w h ic h t h e or d e r und er s ub -s ec t io n (1 ) of s ec t io n 2 45 D is r ec eiv ed by t he Pr i nc ip a l C o mm is s i o ne r o r C o mm is s io ner u nd er s ub -s ec t io n ( 2 ) o f t h at s e c t io n; o r (v iii ) the p e r io d c om me nc in g fr om t he d at e on w hic h an ap p lic a t io n is m a d e be fo re t h e Au t h o ri t y fo r A d va nc e R ulin gs 55 [ o r b e fo r e t h e Boa rd f o r Ad v an c e R ul i ngs ] u nd er s ub -s ec t io n (1 ) o f s ec t io n 2 4 5 Q and e n d ing w it h t he d at e o n w hic h t h e o r d e r r ej ec t i ng t he a p plic a t i on is r ec e iv ed by t he P r i nc ip a l C om m is s i one r o r C o m mi s s i o ne r u nd er s ub -s ec t i o n (3 ) of s e c tio n 245 R ; o r ( i x) t he p e r io d c om m e nc ing f r om t he date on w hi ch an ap p lic a t io n is m a d e be fo re t h e Au t h o ri t y fo r A d va nc e R ulin gs 56 [ o r b e fo r e t h e Boa rd f o r Ad v an c e R ul i ngs ] u nd er s ub -s ec t io n (1 ) of s ec t io n 2 4 5 Q a nd e nd i ng w it h the da t e on w hic h t h e ad v a nc e r ulin g p r on ou nc ed by i t is r ec e iv e d b y t he P r inc ip a l C om m is s i one r o r C o m mi s s i o ne r u nd er s ub -s ec t i o n (7 ) of s e c tio n 245 R ; o r (x ) t h e p er i od c om m enc i ng fr o m t he d at e on w h ic h a r ef er e nc e o r f ir s t o f t he r ef e re nc es fo r exc ha nge o f i nf o rm a t io n is m a d e by an a ut h or it y c om p et e nt und e r an a g re em e n t r ef e r r ed to in s ec t i on 9 0 o r s ec t io n 9 0 A and e nd i ng w it h t he da t e o n w h ic h t h e inf or m a t i o n req ue s ted is la s t r ec e i ved by t he P r inc ip a l C om m is s i one r or C om m is s io ne r or a p e ri od of one y ea r, w h ic hev er is l es s ; o r 10 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni (x i) t he p e r io d c o m me nc in g f r om t he d at e o n w hic h a r ef er en c e f or d ec la ra t io n of an a r r an g em e nt to be an im p e rm i s sib le av o id a nc e a r r a n gem e n t is r ec e iv ed by t he P r i nc ip a l C om m is s i one r o r C o m mi s s i o ne r u nd er s ub -s ec t i o n (1 ) of s e c tio n 144 BA a nd e nd ing o n t he d at e o n w hic h a d ir ec t i o n u nd e r s ub - s ec t i on (3 ) o r s u b -s ec t io n (6 ) o r a n o rd e r und e r s ub -s ec t io n (5 ) o f t h e s a id s e c t io n is r ec e iv ed b y t he 5 7 [ As s es s in g Of f ic er ; o r (x ii) t he p er iod (n ot exc e ed ing o n e h und r e d a nd eig ht y day s ) c om m e nc in g f r o m t h e da te o n w h ic h a s ea rc h is i nit ia t ed u nd e r s ec t i on 13 2 o r a re q u is i t io n is m ad e u nd e r s ec t i o n 13 2 A an d en d in g on t h e d a t e o n w hic h t h e b o ok s of a c co un t or ot he r do c um ent s , o r a n y mo ne y, b ull i on , j ew ell e r y o r o t he r v al uab le ar t ic le o r t hing s ei z ed u nd er s ec t i o n 1 3 2 o r r eq ui s it io ne d und e r s ec t i on 1 32 A , as t he c a s e m ay b e, ar e h a nd ed o ve r t o t h e As s es s in g O ff ic er ha v ing j ur is d ic t ion ov e r t h e a sses s ee,--
(a ) i n w h os e c as e s uc h s ea rc h is ini t ia te d und e r s e c t io n 1 3 2 o r s uc h r eq u is it i o n is ma d e u nd er s ec t io n 132 A; or (b ) t o w ho m a n y m one y, b ul lio n , j ew e ll e ry or o t he r v al uab le ar t ic le o r t hin g s eiz e d o r r eq uis it io ned b elo n gs t o; or (c ) t o w ho m a ny bo o k s o f a c c o unt or doc um ent s s ei ze d o r r eq ui s i t io n ed p e rta ins or pe r t a in t o, or a ny i nf o rm a t io n c o nta i ne d t he re in, re la t es t o ; o r ] 58 [ (x i i i) t he p e r iod c om m e nc i n g f ro m t he da t e o n w hic h t h e As s es s in g O ff ic e r m ak es a r e f er enc e to t he P r inc ip a l C om m is s i one r o r C om m is s io ne r und er t he s ec o nd p ro vis o t o s ub - s ec t i on ( 3 ) o f s ec t i on 14 3 a nd end i ng w it h t h e d a t e o n w h ic h t he c op y of t he o r d er u nd e r c la us e ( ii) o r c la us e ( iii) of t h e fift ee nt h pr ov is o to c la us e (2 3 C ) o f s ec t i o n 1 0 o r c la us e ( ii) or c la us e (i ii) o f s ub - s ec t i o n ( 4 ) o f s ec t io n 1 2 A B, as t he c as e m ay b e, is r ec e iv ed b y t h e As s es s i ng O ff ic e r, ] s ha ll be e xc lud e d :
11 ITA Nos. 1883 & 2144/Del/2023Vijay Kumar Soni Pr o v id e d t ha t w h er e i mm ed iat ely after the exc l us io n of t he af or es a id p e r iod , t he p e rio d o f l i m it a t io n r e fe rr ed t o in s ub - s ec t i ons (1 ) , 59 [ (1 A), ] (2 ), (3 ) an d s u b -s ec t io n (8 ) a va ila ble t o th e As s es s i n g Of f ic e r fo r m ak in g an o rd e r of as s e ss m e n t, r eas s e ss m ent o r r ec o m p ut at io n , as t h e c a se m ay b e , i s les s t ha n s ixt y da y s , s uc h r em a i n in g p e ri od s h a l l b e ex t e nd ed t o s ix t y da ys a nd t h e a f or e s ai d pe r io d of l im it at io n s h a ll b e d eem e d t o be e xt e nd e d ac c o rd i ngl y :
Pr o v id e d f u rt h er t h at w her e t h e p er i od a va ilab le t o t h e T r ans f e r Pr ic i ng Of f ic er is e xt en d ed t o s ix t y d ay s i n a c co rd a nc e w i t h t h e pr ov is o t o s u b -s e c t io n (3 A) o f s ec t io n 92 CA an d t h e p e r iod of lim it a t i o n a v a il a b l e t o t h e As s es s ing O f fic e r fo r ma k i n g a n or d e r o f as s es s m ent , r ea s s es s me nt o r r ec om p ut at i o n , as t h e c as e m ay be , is les s th a n s ix t y da ys , s uc h r em a in ing p er io d sh a ll b e ex t e nd ed t o s ix t y da ys a nd t he a f or e s aid p e r iod o f lim it a t io n s ha ll be d ee m ed t o be e xt end ed ac c or d in gly :
Pr o v id e d a ls o t ha t w her e a p r o c e e d ing b e f o re t he Set t l em en t C om m is s i on a ba t es u nd e r s ec t io n 2 45H A , t he p e ri od of lim i ta t io n av a i l ab l e u n d e r t h is se c t ion t o t h e As s es s i ng O f f ic er fo r m a k in g an o r d er o f as s es s m e n t, r ea s se s s m e nt o r r ec o m p ut a t io n, as th e c as e m ay b e, s ha ll, a ft er t he e xc lus io n o f t h e p er i od u n d e r s ub - s ec t i on (4 ) o f s ec t i o n 24 5 H A, b e no t l es s t ha n o ne y ea r ; a nd w h er e s uc h p e r i od o f li m it a t i o n is l es s t ha n one y e a r, it s ha ll b e de em ed to ha v e be en ex t e nd e d to one ye a r ; an d for t he pu rp o s es o f d et er m in i ng t h e p e r i od o f li m ita t io n u nd e r s ec tio ns 149 , 1 5 4 , 1 55 a nd 1 5 8 BE a nd f o r t he p urp os es of pa ym e nt of int er es t u nd e r s ec t io n 2 44 A, t his p r ov is o s ha l l a ls o a pp ly ac c o rd in gl y :
60 [P r o v id ed a ls o t ha t w her e t he a s se s s ee ex er c is es t he o p t io n to w i t hd r a w the a p p lic a t io n und e r s ub -s ec t io n ( 1 ) o f s ec t io n 245 M, t he p er io d of li m it at ion a va ila b le u nd e r t his s e ct i o n t o t h e As s es s in g O f f ic er f or making an o rd e r of as s e s sm e nt , r eas s e ss m ent o r r ec om p uta t i o n, as t he c as e m a y b e , s ha ll, aft e r th e ex c lus io n o f t h e p er i od und e r s u b -s ec t i o n (5 ) of t he sa id s ec t i on , be n ot les s t ha n o ne yea r; a nd w her e s uc h pe ri od of 12 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni lim it a t i o n is les s t ha n o n e ye a r, it s ha ll be d e em ed t o ha ve b e e n ex t e nd ed t o o n e y ea r :
Pr o v id e d a ls o t h a t f o r t he p urp os es o f de t e rm i ning t he p e rio d of lim it a t i o n und e r s ec t io ns 14 9 , 154 and 1 55 , a nd for t he pu rp o s es of p a y m e nt of in t er es t und e r s ect io n 2 44 A , t he pr ov is i ons o f t h e f o u rt h p r o v is o s ha l l a pp ly a c c o rd in gl y . ] Ex p la na t io n 2. --F o r the p ur p o s es o f t h is s ec t io n, w h er e , b y a n o rd e r re fe rr ed t o i n c la us e ( i) o f s ub -s e c tio n (6 ) , --
(a ) a ny in c om e is exc lud ed fr om t he t o ta l i nc o me of t he as s e s s e e f o r a n as s es s m ent y ea r, t h en, a n as s e ss m e nt o f suc h inc o m e fo r a n ot he r a s s es s me n t y ea r s ha ll , f o r t h e p urp os es of s ec t i on 150 a n d t his s ec t i o n , b e d e em ed to b e o n e m a de in c o nse q u enc e of or to gi v e e ff e c t t o any f ind ing o r d ir ec t io n c o nta i ne d in t h e s a i d o rd er ; or (b ) a n y inc o me is e xc lud ed f ro m t he t ot a l inc o m e o f o ne p e rs o n an d h eld to be t he inc om e of a no th e r p e rs o n, t he n, an as s e s s m e nt o f s u c h i nc o me o n s uc h ot h er p e rs o n s hal l, f o r t he pu rp o s es of s ec t i o n 1 50 and t h is s ec t io n , b e d eem ed to b e o ne ma d e in c o ns eq u en c e of or t o giv e e ff ec t t o a ny f ind i ng o r dir ec t i on c o nt a in ed in t h e s a id o rd e r, i f s uc h o t he r p er so n w as giv en a n o pp o rt un i t y of b e ing h ea r d b e f or e t he s a id o rd e r w as pa s s ed . "
6. On the issue of limitation, we are guided by the judgment of Hon'ble Supreme Court in the case of Commissioner of Income Tax-14 Vs. Jasjit Singh in CA No . 6566 of 2023 dated 26.09.2023.
7. The Hon'b le Apex Court enunciated as under:
"7 . Se c t io ns 1 53 A a nd Se ct io n 1 53 C o f the I nc om e T ax Ac t , 196 1 to t he ext e nt t he y a r e r e l ev ant a r e e xt r a c te d b e lo w :13 ITA Nos. 1883 & 2144/Del/2023
Vijay Kumar Soni "15 3 A. (1 ) N ot w it hs ta nd ing an yt hi n g c o nta ine d in s ec t io n 1 3 9 , sec t io n 1 4 7 , s ec t io n 148 , s ec t io n 1 49 , s ec t io n 1 5 1 and s ec t io n 153 , in t h e c a s e of a p e rs on w he r e a s ear c h is in it i at ed un d e r sec t io n 1 3 2 or b oo k s of a cc o un t , ot he r d oc um en ts o r a ny as s ets ar e re q u is it io ne d und e r s ec t i o n 13 2 A aft e r t h e 3 1s t d ay of M a y , 200 3 61 [b ut o n o r b e f o re t h e 3 1s t d ay o f M arc h , 2 0 2 1 ], t he As s es s in g O ffi c e r s ha ll--
(a ) is s ue not ic e t o s uc h p e rs o n r eq ui r in g hi m t o f u r nis h w it h in suc h p e ri od, a s m a y b e s p e c ifi ed i n t he n ot ic e, t h e r et u rn of inc om e in res p ec t of ea c h as s es s m e n t y ea r fa l lin g w it hi n s i x as s es s m e nt y e a rs a nd f o r t h e r e le v an t a s s es s m e nt y ea r o r y ea rs r efe rr e d t o i n c la us e (b ), in t h e p re sc r ib e d f o rm a n d v er if ied in the p r es c r ib e d m a nn er a nd s ett ing f o rt h s uc h o t h e r p a rt ic ula rs as ma y b e p re s c rib ed a n d t h e p r o v is io ns o f t his A ct s hal l, s o fa r as ma y b e, a pp ly a c c o rd ing ly as if such r et ur n w e re a re t ur n r eq ui r ed t o b e fu r ni sh ed u nd e r s ec t io n 139 ;
(b ) a s s es s o r r ea ss e s s t h e t ot a l i nc o m e o f s ix as s es s m ent y ea rs imm ed ia t e ly p r ec ed in g the a s se s s m e nt ye ar r el e v a nt to the pr e v io us y e a r in w hi c h s uc h s e a rc h is c o nd uc t ed o r req uis i t io n is 3m ad e a nd f o r t he r e le va nt a s s es s m e n t y ea r o r y e ar s : Pr ov id ed tha t t h e As s e ss in g Of f ic er s ha ll a ss e s s o r re as s ess th e tot a l inc om e i n r es p ec t o f ea c h a s s es s m en t yea r f all ing w it hi n s u c h s i x as s es s m e nt y e a r s a nd f o r t h e r e lev an t as s es s m e nt y e a r o r ye ar s :
Pr o v id ed f u rt h er t ha t as s es s m e nt or r eas ses s m e n t , if an y, r ela t in g t o a ny a s s es s m e nt y ea r fa llin g w it hi n t h e p e r iod o f s ix as s es s m e nt y e a rs a nd f o r t h e r e le v an t a ss es s m e nt y ea r o r y ea rs r efe rr e d t o in t h is s u b -s ec t i o n p e nd i n g o n t h e d at e o f ini t ia tio n of the s ea rc h und e r s ec t io n 1 3 2 o r ma ki ng of r eq u is it i on un d e r sec t io n 13 2 A , a s t h e c as e m a y b e , s ha ll ab at e: ... . "
"15 3 C. (1 ) N ot w it hs ta nd ing a ny t h i ng c ont a i ned in s ec t io n 1 39, sec t io n 1 4 7 , s ec t io n 148 , s ec t io n 1 49 , s ec t io n 1 5 1 and s ec t io n 153 , w h e r e t h e As s es s in g Of f ic er is s at is f ie d t ha t ,--
(a ) a ny m o ne y , b u llio n, j ew e lle ry or ot h e r v al uab l e a rt ic le o r thi ng, s e iz ed or r eq uis it io n e d, b e lo n gs t o ; o r 14 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni (b ) a ny bo o k s of a c co un t o r d o c um ents , s eiz e d o r r eq u is it i one d , per t a ins or p er ta i n to , o r a ny inf or ma t io n c o nt a ine d t h er e i n, r ela t es t o, a p e rs o n o t he r t ha n t he p ers o n r ef e rr ed t o in se c t io n 153 A , t h en, t he b oo ks of ac c o un t o r d o c um e nt s o r a s s et s , s e iz ed o r re q uis i t io ned s ha ll b e ha nd ed o v e r to t he As s es s in g O ff ic e r ha v in g j ur is d ic t io n ov e r s uc h ot he r p e rs o n a nd t h at As s es s in g O ff ic er s ha ll p r oc ee d a ga ins t ea c h s uc h ot he r p e rs on a nd is s u e not ic e a nd a s s es s or re as s es s t he in c o me o f t he o t he r p e r s o n in ac c o rda nc e w i t h t he p rov is io ns o f s ec t io n 15 3 A, if, t ha t As s e ss in g O ff ic er is s a t is f ie d t ha t t h e b oo ks of a c c ou nt o r d oc um e nt s o r as s et s s e iz ed or re q uis i t io ne d ha v e a b ea r ing on the det e r mi na t io n o f t he t ot al inc o m e o f s uc h o t he r pe rs on f o r s i x as s es s m e nt y e a rs i mm ed i at e l y pr ec e d i n g t he as s ess m e nt y ea r r el ev a nt t o t h e p re v io us y ea r in w h ic h s ea rc h is c o nd uct ed o r r eq uis it io n is m ad e an d f o r t he r ele v a nt a s s es sm ent ye ar o r y e a r s re f e r re d to i n s ub -s ec t io n (1 ) o f s ec t i o n 15 3 A:
Pr o v id ed t hat in c a s e of s uc h ot he r p ers o n, t he r ef e r e nc e t o t h e dat e o f in it i at io n of t he s ea rc h und e r s ec t io n 1 3 2 o r ma k in g of r eq uis it io n und e r se c t io n 1 32 A in t he s ec o nd p ro v is o t o s ub - sec t io n 4 (1 ) of s ec ti o n 15 3 A s ha ll b e c o ns t ru ed as r ef e r enc e t o the da t e o f r ec e i v in g t h e b o ok s o f a c c oun t o r d oc u m e nt s o r as s et s s e iz e d o r r eq u is it i on ed b y th e A ss e s s ing O ff ic e r hav in g ju r is d ic t io n ov er s uc h o t h er p er s o n :
Pr o v id ed f urt h er t ha t t he Ce nt ra l G ov er nm en t ma y b y r u les m a d e by it a n d p ub lis hed in t he Of f ic ial Ga z ett e , s p e c if y t h e c la s s o r clas s es o f c a s es in r es p e ct o f s uc h o t h er p e rs o n, in w h ic h t h e As s es s in g O f f ic er s h a ll n ot be r eq uir ed to is s ue n ot ic e fo r as s es s i n g o r re a s s es s in g t h e t o t a l in c o m e fo r s ix a s ses s m ent y e a r s im m ed ia t e ly p rec ed in g t he as s es s m en t y ea r r e le va nt t o t h e pr e v io us y e a r in w hi c h s ea rc h is c on d uc t ed o r r eq uis it ion i s m ad e an d f o r t he r e l ev a n t a s s es s m e nt y ea r or y e a r s as re fe r r ed to in sub -s e c t io n (1 ) of s ec t ion 153A exc ept in c a s es w he re any as s es s m e nt or r ea s s es s m ent ha s a b a t ed . "
8. I n SSP A v ia t io n (s up r a ) th e H ig h Co urt int e r a lia r ea s on ed as fo llo ws :
15 ITA Nos. 1883 & 2144/Del/2023Vijay Kumar Soni "14 . Now t he r e can be a s it u at io n when d ur in g the s e ar c h co nd uc t ed on one p e rs o n un d er S ec t io n 13 2, s om e d o c um e nts o r va lua b le as s et s o r boo ks o f a c c o u nt b elo ng ing t o s o me ot he r per s o n, in w h os e c a s e t h e s ea rc h is no t c o nd uc t e d , m a y b e fo und . In s uc h c a s e, t he As s es s ing Off ic er ha s to f ir s t be sa t i sf i ed und er Sec t io n 1 5 3 C, w h ic h p r o v id es f o r t h e a s sess m en t o f inc om e o f a ny ot he r p er s o n, i. e ., a n y ot he r p er s o n w h o i s not cov e r ed by the s e ar c h, t hat the b o ok s of a c c ou nt or ot he r va lua b le a rt i c l e o r d o c um ent b e l ongs t o t h e ot he r p er s on (pe rs o n ot her t ha n t h e o n e s ea rc he d ). H e s ha ll h and o v e r t he v al u ab l e art ic le or b o ok s o f a c c oun t o r d o c u m e nt t o t he As s es s in g O ff ic e r ha v in g j ur is d ic t i o n ov e r the ot he r p er s o n. T h er ea ft er , the As s es s in g O ffic e r ha v i n g j u ris d ic t io n ov er t he o t h e r pe rs o n ha s t o pr oc e ed a ga ins t h im a nd is s u e n ot ic e to t ha t p e rs on i n or d e r t o as s es s o r r ea ss e s s t he inc o m e o f su c h ot he r p e rs on in th e, ma n ne r c on t e m p l a t e d b y t h e p r ov is io n s of S ec t io n 1 5 3 A . N ow a ques t i o n m a y a r is e a s to t he app l i c a b il it y of t h e s ec o nd p r ov is o to Sec t i on 15 3 A in th e c a se o f t he o the r p e rs o n, in or de r t o ex am in e t he q u es t io n of p e nd in g p r oc e ed i ngs w hic h ha v e to aba t e . In t he case of t he s ea rc he d p er s o n , t he d at e w it h r efe re nc e to w hi c h the p r o c ee d ings for a ss e s s me nt or r ea s s es s m ent of a ny as s es s m e nt y e a r w it h i n t h e p e ri od of th e si x as s es s m e nt y ea rs s ha ll aba t e , is t he date of i n it ia t i on o f th e sea rc h u nd e r S ec t i o n 1 32 o r t h e r eq uis it io n und e r S ec t io n 1 32 A. Fo r ins t a n c e, i n t he p r es en t c as e , w ith r efe re nc e t o t h e P u r i Gr o up o f C om p a nie s , s uc h d at e w ill b e 5 .1 .2 00 9 . H ow ev er, in t h e ca s e of t he o t h er p er s o n, w h ic h in th e p r es e nt c as e is the pet i t io n e r her e in , s uc h d at e w i l l b e t h e d at e o f r ec e iv in g t h e bo oks of a c c oun t o r do c um en ts o r as s e ts s e iz ed o r r eq u is it i on b y the As s es s i n g Off ic er ha v in g j ur is d ic t i on ov e r s uc h o t he r p er s o n.
In t h e c a s e o f t he ot her p er s o n, t h e q u es t io n o f p end enc y a nd aba t e m ent o f t he p r oc e ed ings of as s es s m ent o r r ea s s es s m e nt t o the s ix a s s es s m ent y e a rs w i ll b e ex am i ned w i t h re f e r e nc e t o s uc h dat e."
9. I t is e v id e nt o n a p la in i nt e rp re ta t io n of Sec t ion 15 3 C( 1 ) t ha t the Pa r lia m e nt a r y int e nt t o e nac t t he pr o v i s o w as t o c a t e r no t me r e l y t o t h e q ues t i o n o f ab at em en t b ut als o w it h re ga rd t o t h e 16 ITA Nos. 1883 & 2144/Del/2023 Vijay Kumar Soni dat e f ro m w hic h t he s i x y ea r p e r iod wa s t o b e re c k o ne d , in r es p ec t of w h ic h t he r et ur ns w e re t o b e fi le d b y t he t hir d pa rt y (w ho s e p r em is es ar e no t s ea rc h e d a nd in re s p ec t o f w h om th e sp ec if ic pr o v is io n und er S ec t io n 15 3 - C w as e na c t ed . T he r e v e n u e ar g ue d t ha t t he p r o v i so [t o Se c t i o n 1 5 3(c )( 1 ) ] is c on fi ned in its app lic a t io n t o t he q ues t i o n of a b at em en t.
10. T his C o urt is o f t h e op in i on t h at t h e r ev e n ue 's a rg u m ent is ins ub s t a nt i a l a n d w i t ho ut m e r it . It is q u it e p la us ib l e t hat w it h o ut the k i nd o f in t e rp r et at io n w h ic h SS P Av ia t io n ad op t ed , t h e A. O. se iz e d o f t he m at e r ia ls - o f t h e s e a r c h p ar t y , und er Se ct io n 1 3 2
- wo ul d t a k e h is o w n t im e t o f o rw a rd t he pa p e rs a nd m at er i als bel on g ing t o t h e t h ird p ar ty , t o t h e c on ce r n ed A.O . I n t hat ev ent if t he d a t e w o u ld v i rt ual l y " re lat e b ac k " a s is s ou ght to b e co nt end ed by t he re v e nue , (t o t he d at e o f t he s e i z ur e ) , t h e pr ej ud ic e c a us ed t o t he t h ird p a rt y , w ho w o ul d b e d ra w n int o pr oc e ed i n gs as it w er e u nw it t in gly ( an d in m a n y c as es hav e no co nc e r n w it h it a t a ll) , is d is -p rop o r t io na t e. F o r i ns t a nc e, if t h e pap er s a r e in f ac t a s s igned und e r S ec t i o n 15 3 - C a ft er a p e r io d of fo ur y ea rs , t he t h ir d p ar t y a s s es s ee 's p re j ud ic e i s w r it la rge a s it wo u l d ha v e t o v i rt ua ll y p r es e rv e t he re c or ds for a t l at est 1 0 y e a r s w hic h is no t t he r e q u ir em e nt in l aw . Suc h d is as t r ous an d ha rs h c o ns eq uen c es c a nno t b e a t t ri b ut ed t o Pa rl ia me nt . On t h e ot her ha nd , a p l a in r ea d ing of S ec tio n 1 5 3 -C s upp o r t s the int er p re ta t i o n w h ic h t h is Co ur t ad o p ts .
11. F o r t h e f o r e g o in g r eas ons , t he C o ur t finds n o m e r it i n t h es e app ea ls ; t h ey a r e a c c or d i n gly d is m is s e d, w it ho ut o rd e r o n c o sts . "
8. Thus, on going through the judgments of Hon'ble jurisdictiona l High Court and Hon'ble Apex Court, we have no hesitation to hold that the Assessments made for A.Y. 2017-18 u/s 143(3) consequent to the satisfaction note recorded on 26.03.2019 are outside the scope of Section 143(3) of the Income Tax Act, 1961 and he nce, the assessments are treated as void ab initio. Consequently, the assessment made u/s 143(3) for A.Y . 2017-18 shall also be treated as void.17 ITA Nos. 1883 & 2144/Del/2023
Vijay Kumar Soni
9. Since, the assessee succeeds in Cross Appeal on jurisdictiona l issue, the appeal of the Revenue is dismissed as infr uctuous.
Order Pronounced in the Open Court o n 06/09/2024.
Sd/- Sd/-
(Sudhir Kumar) (Dr. B. R. R. Kumar)
Judicial Member Accountant Member
Dated: 06/09/2024
*Subodh Kumar, Sr. PS*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR