ACIT Vs Kishore Kumar Kaya (ITAT Delhi)
The Delhi ITAT dismissed the Revenue’s appeal and upheld the CIT(A)’s order holding that assessment for AY 2021-22 ought to have been framed u/s 153C and not u/s 143(3), since the year fell within the six-year block period reckoned from the date of recording satisfaction note. The Tribunal noted that in the case of a non-searched person, the relevant date for computing the six assessment years under section 153C is not the date of search, but the date on which seized material is handed over or satisfaction is recorded by the Assessing Officer having jurisdiction over such other person.
Relying extensively on the Supreme Court ruling in CIT vs. Jasjit Singh and Delhi High Court judgments in Ojjus Medicare Pvt. Ltd. and Pavitra Realcon Pvt. Ltd., the Tribunal observed that the satisfaction note in the assessee’s case was recorded on 23.08.2022. Therefore, the correct six-year block period for section 153C extended from AY 2017-18 to AY 2022-23, within which AY 2021-22 squarely fell. Since the AO nevertheless completed assessment u/s 143(3) instead of invoking section 153C, the assessment proceedings were held to be legally unsustainable. The ITAT affirmed the CIT(A)’s conclusion that the assessment framed under the wrong statutory provision was invalid in law.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the revenue against the order of Ld. CIT(A)-30 dated 25.04.2025 for the A.Y. 2021-22.
