Ranjan Sharma Vs DCIT (ITAT Delhi)
ITAT Delhi held that regular assessment order passed under section 143(3) of the Income Tax Act without aid of section 153C despite satisfaction note from AO of searched person is not supportable in law. Thus, assessment framed u/s. 143(3) is void ab-initio.
Facts- The present appeal has been preferred by the assessee. It is mainly contested that CIT(A) ought to have quashed the impugned assessment passed by AO u/s 143(3). AO having initiated the proceedings u/s 153C since satisfaction in terms of section 153C was recorded by Ld. AO for the AO for the AY 2015-16 to AY 2021-22; notices u/s 153C were issued for other AYs i.e. 2015-16 to AY 2020-2021 and approval u/s 153D for passing the impugned assessment order was taken by AO.
Conclusion- Held that when the Assessing Officer himself has drawn of satisfaction note clearly pointing out that the assessment should be completed u/s 153C of the Act, then why at the time of passing of assessment order, he did not resort to that provision. This is a clear fundamental lapse on the part of the Assessing Officer, which cannot be condoned. By placing reliance on the various legal propositions and the acceptable judicial precedence, the assessment order is not sustainable as it has been passed without following the due rigours of law. Since, the assessee is successfully in assailing the jurisdictional issue; we refrain from dealing on the facts of the case. In the result, the appeal of the assessee is allowed.
