PCIT Vs Karina Airlines International Ltd (Delhi High Court)
Delhi High Court held that in case of search, block period of ten years for search assessment, would not be attracted in case the search has taken place before 1st April 2017.
Facts- The appeal arises in the backdrop of a search and seizure action which was initiated on 07 April 2016 in the case of Harvansh Chawla. Pursuant to the search that was so initiated a Satisfaction Note as contemplated u/s. 153A of the Income Tax Act, 1961 came to be recorded by the Assessing Officer with respect to the searched individual on 29 March 2019. The respondent-assessee in this appeal is the non-searched entity. A Satisfaction Note in its respect and referable to Section 153C came to be drawn on 15 May 2019. Pursuant to an assessment being undertaken in terms of Section 153C of the Act, the AO on 31 December 2019 made additions of INR 32,91,052/- in respect of receipts of foreign inward remittances, INR 2,50,000/- on account of non-deduction of TDS and INR 2,58,30,576/- in respect of debts written off.
CIT(A) allowed relief to the extent of INR 2,51,30,576/- and pegged the addition to the extent of INR 7,00,000/-. The income of the assessee consequently stood enhanced by INR 2,23,25,000/-. On the aspect of limitation for initiation of proceedings under Section 153C of the Act, the CIT(A) had held against the respondent assesse.
