Quadra Infratel Synergies Pvt. Ltd. Vs ACIT (ITAT Delhi)
153C limitation counted from date of handover, not original search; ITAT Delhi quashes assessment as time-barred
Delhi Tribunal allowed Assessee’s appeal & quashed assessment u/s 153C as barred by limitation. Tribunal noted that search was conducted on a third party (A-Tek Enterprises) on 28-06-2018, but seized material was handed over to AO of Assessee only on 26-10-2021, & satisfaction u/s 153C was recorded on 24-01-2022. Following binding law laid down by SC in CIT vs Jasjit Singh & Delhi HC in PCIT vs Ojjus Medicare Ltd., Tribunal held that for a non-searched person, year of handover of seized material is to be treated as year of search for computing limitation. Accordingly, six-year block would run from AY 2022-23 to AY 2016-17, rendering AY 2014-15 outside permissible period. Since jurisdiction itself failed, assessment framed u/s 153C r.w.s. 143(3) was held null & void. Tribunal therefore quashed assessment on legal ground, leaving all issues on merits (including additions u/s 69A/69C) open & unadjudicated. Appeal was allowed
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is preferred against the order of the Commissioner of Income Tax (Appeals), Delhi – 110023 [herein after referred as “CIT(A)”] dated 29.06.2024 for A.Y. 2014-15.
