Parvesh Kumar Vs DCIT (ITAT Delhi)
The Delhi ITAT considered appeals for AYs 2013-14 and 2014-15 challenging assessments framed under Section 153C read with Section 143(3) of the Income-tax Act, 1961. The assessee primarily questioned the validity of the jurisdiction assumed under Section 153C, contending that the satisfaction note was recorded after 1 April 2021, when the amended statutory framework no longer permitted initiation of proceedings under Section 153C in such circumstances.
The assessee submitted that the Assessing Officer recorded the satisfaction note on 20.10.2021 and issued notice under Section 153C on 31.03.2022. It was argued that, following the amendment introduced by Section 153C(3) with effect from 01.04.2021, proceedings under Section 153C were no longer maintainable where the deemed date of search fell on or after 1 April 2021. According to the assessee, the proper course, if permissible, would have been to invoke Section 148 and not Section 153C. Reliance was placed on decisions of the Madras High Court and coordinate benches of the Delhi Tribunal. The Tribunal declined the Revenue’s request for adjournment for appointment of special counsel and proceeded to hear the matter.
The Tribunal noted that the satisfaction note in the assessee’s case had been recorded on 20.10.2021 and notice under Section 153C was issued thereafter. It held that, in the case of a person other than the searched person, the deemed date of search is the date on which the satisfaction note is recorded or the seized material is received by the jurisdictional Assessing Officer. Referring to Section 153C(3), the Tribunal observed that the provision does not apply to searches initiated on or after 01.04.2021. Since the deemed date of search in the present case fell after that date, the assessment framed under Section 153C was held to be invalid.
