KLP Projects Private Limited Vs ACIT (Madras High Court)
Date of receipt of seized documents by AO to be considered for limitation period to issue of notice u/s. 153C
Madras High Court held that period of limitation for issuing notice under section 153C of the Income Tax Act to person other than searched person shall be date of receiving books of accounts or documents seized by AO having jurisdiction over such other person.
Facts- The search was conducted by the respondent on 09.11.2017, subsequent to which, the petitioner approached the Interim Board for Settlement (IBS) and arrived at settlement. Thereafter, another search was conducted on 10.11.2020. The materials were collected from the petitioner and the satisfaction notes were issued by the Authorities on 30.06.2022. Under these circumstances, once again the petitioner had approached the IBS vide application dated 28.12.2023. In spite of the same, the impugned notice dated 30.12.2024 u/s. 153C and another notice dated 28.02.2025 u/s. 142(1) came to be issued by the respondent, for which, the petitioner filed their reply/objection dated 03.03.2025, whereby they had taken a stand that the proceedings initiated by the respondent is barred by limitation. However, the said reply/objection was rejected and the impugned order came to be passed by the respondent on 13.03.2025.
