Asha Gutpa Vs DCIT (ITAT Delhi)
In Asha Gupta vs DCIT, the Delhi ITAT examined whether the Assessing Officer (AO) could complete assessment for AY 2021–22 under Section 143(3) after recording satisfaction under Section 153C on 24.05.2022. A search under Section 132 was conducted on 26.10.2020 in another person’s case, and documents allegedly relating to the assessee were seized. The AO of the assessee recorded satisfaction on 24.05.2022 and issued notice under Section 143(2), completing assessment under Section 143(3) with an addition under Section 69A. The Tribunal held that as per the first proviso to Section 153C(1) and the Supreme Court ruling in Jasjit Singh, the relevant “search year” for the other person is the year in which satisfaction is recorded. Since satisfaction was recorded in FY 2022–23 (AY 2023–24), the six preceding assessment years included AY 2021–22. Therefore, assessment ought to have been framed under Section 153C, not Section 143(3). The order was quashed as jurisdictionally invalid.
Core Jurisdictional Issue:- Whether, after recording satisfaction under Section 153C on 24.05.2022, the Assessing Officer could validly complete the assessment for AY 2021–22 under Section 143(3), instead of invoking Section 153C.
The controversy centered on determination of the “search year” for purposes of Section 153C and the legal consequence of the date on which satisfaction is recorded by the Assessing Officer of the “other person”.
