Kamal Sharma Vs DCIT (ITAT Delhi)
ITAT Delhi held that issuance of notice under section 153C of the Income Tax Act beyond six years prior to relevant searched assessment year is beyond jurisdiction and accordingly liable to set aside.
Facts- Search was conducted in the case of Sunstar Group on 19.12.2013. Based on the material found, notice u/s. 153C of the Income-tax Act, 1961 was issued on 20.01.2016. He submitted that the deemed search for the purpose of section 153C is AY 2016-17. AO has issued notice u/s 153C to AYs falling within six assessment years immediately preceding assessment year relevant to the previous year in which search was conducted. He submitted that notices u/s 153C was issued on 20.01.2016 to the assessee. It shows that satisfaction was recorded by the Assessing Officer of the assessee in the AY 2016-17, therefore, as per the provisions of section 153C, six years prior to the searched assessment year in this case is AY 2016-17 covers the period i.e. AYs 2010-11 to 2015-16. Since the assessment proceedings were initiated for impugned AY 2009-10 is beyond jurisdiction.
Conclusion- Held that the search in the case of Sunstar Group was carried on 19.12.2013 and as per records submitted before us, we observed that the notice u/s 153C was issued only on 20.01.2016. Therefore, the satisfaction in the case of the assessee was recorded by the jurisdictional Assessing Officer prior to issue of notice issued u/s 153C, therefore, the relevant searched assessment year pertains to AY 2016-17. Accordingly, six years prior to the relevant assessment year covers AYs 2010-11 to 2015-16. In the case of the assessee, notice u/s 153C was issued to the assessee covering AY 2009-10 which is beyond jurisdiction.
