Suryavanshi Ventura Pvt. Ltd. Vs ACIT (ITAT Delhi)
Conclusion: An assessment order passed by AO was quashed on the reason that assessment year was beyond the ten-year outer ceiling limit prescribed by Section 153A.
Held: Assessee challenged the assumption of jurisdiction by AO and consequent passing of the Assessment Order. Assessee challenged the issuance of notice u/s 153A for the assessment year 2008-09 on the reasoning that the said notice was issued beyond the period of limitation. Hence, it was contended that the same was illegal and invalid in the eyes of law. Emphasis was also placed on Explanation 1 to Section 153A to submit that the assessment beyond the period of 10 years from the end of the relevant AY in which search had been carried out could not be initiated as search took place on 22.01.2018 and therefore the AY- 2008-09 was beyond the 10 year outer ceiling limit. Department, placed emphasis on the findings of CIT (A) and contended that the impugned order should be sustained. It was held that following the reasoning given by the Hon’ble Delhi High Court in its decision in the case of Ojjus Medicare was held that AY 2008-09 was beyond the ten-year outer ceiling limit prescribed by section 153A. Hence, AO had erred in assuming the jurisdiction. Consequentially, the assessment order passed under section 153A was held invalid in the eyes of law. Hence, the assessment order was quashed.
