Case Law Details
Opal Buildwell Pvt Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi held that as per amendment to section 153C of the Income Tax Act the six assessment years immediately preceding the AY relevant to the previous year in which search is conducted or requisition is made will come into the purview of block assessment years.
Facts- The assessee filed return of income at Rs. 37,746/- and the case was processed u/s 143(1) of the Income Tax Act, 1961 (Act for short) resulting Nil demand for AY 2009-10. A search and seizure operation was carried on Appu Ghar Group of cases u/s 132 of the Act on 10.03.2015. During the course of search and seizure operation, certain documents/ papers were found and seized which was belonged to assessee. The assessment u/s 153C read with section 153A of the Act came to be passed by making an addition of Rs. 1,60,00,000/- by treating the same as income from ‘undisclosed source’ on account of ‘unexplained credits’ and the same has been added to the total income of the assessee u/s 68 of the Act.
Aggrieved by the assessment order dated 30.12.20 17, the assessee preferred an appeal before the ld CIT(A). The ld CIT(A) found that date of writing satisfaction note/ handing over of the relevant material being 10.20 16, the assessment year in which the date of handing over of the relevant material falls would be AY 20 17-18, therefore, the block period for issuing notice u/s 153C read with section 153A would be form AY 2011-12 to AY 2016-17 (6 AYs immediately preceding year 2017-18). Consequently, held that the notices issued u/s 153C for AY 2009-10 and 2010-11 were beyond mandate of the law and quashed the assessment order.
Being aggrieved, revenue has preferred the present appeal.
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