Date Of Satisfaction Note Is To Be Reckoned As Date Of Handing Over Material, For Initiation Of Proceedings U/s 153C: Delhi ITAT
Live LawFinding that the assessment year 2008-09 is beyond the period of six assessment years and respectfully following the decision of the jurisdictional High Court and the coordinate bench, the New Delhi ITAT held that the assessment made u/s 153C of Income tax Act for the AY 2008-09 is barred by limitation. The Bench of Challa Nagendra Prasad and Dr. BRR Kumar observed that “in the absence of mentioning the date of handing over of the materials the date of satisfaction note shall be reckoned as the date of handing over of the materials and consequently the time limit of calculating the six years has to be calculated from this date.” As per the brief facts of the case, the initiation of proceedings u/s 153C for AY 2008-09 on Feb 02, 2016 on which date the AO had recorded his satisfaction for taking up the case of the assessee u/s 153C and issuing notice u/s 153C for making an assessment was challenged by the assessee to be bad in law. Limited, wherein it was held that since there is no specific date of handing of material in the satisfaction note, the date of satisfaction note is to be reckoned as the date of handing over the material and the time limit calculating the six years has to be calculated from this date. Hence, observing that the time limit of calculating the six years has to be calculated from Feb 02, 2016, the ITAT held that the assessment made u/s 153C r.w.s.
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