Umapathy Srinivasa Gowda Vs DCIT (ITAT Bangalore)
Summary: The Bangalore Bench of the Income Tax Appellate Tribunal allowed seven appeals filed by Shri Umapathy Srinivas Gowda for Assessment Years 2013-14 to 2019-20. The appeals arose from assessments completed under Section 153C of the Income-tax Act, 1961 following search proceedings conducted on 03.01.2019 in the cases of Shri T. Vijayakumar, Shri C. R. Manohar and others, during which material relating to the assessee was found.
For A.Y. 2013-14, the assessee filed a return pursuant to notice under Section 153C declaring total income of Rs. 7,08,670/-. The assessment was completed at Rs. 15,80,904/-, resulting in an addition of Rs. 8,72,230/-. Assessments for A.Ys. 2014-15 to 2019-20 were also completed under Section 153C. The assessee challenged the assumption of jurisdiction and various procedural aspects before the CIT(A), which dismissed the appeals.
Before the Tribunal, the assessee principally contended that the Section 153C notice dated 06.12.2021 was without jurisdiction. The search had occurred on 03.01.2019, but satisfaction in the assessee’s case was recorded on 26.11.2021. According to the assessee, for an “other person”, the relevant deemed date was the date on which the Assessing Officer having jurisdiction received the seized material and recorded satisfaction. Since that date was after 01.04.2021, Section 153C(3), inserted with effect from 01.04.2021, rendered Section 153C inapplicable.
