3D Tradex Private Limited Vs ADIT (ITAT Delhi)
Summary : The Income Tax Appellate Tribunal (ITAT) Delhi heard six appeals filed by 3D Tradex Private Limited (formerly 3D Portfolio Pvt. Ltd.) for Assessment Years (AYs) 2010–11 to 2015–16, along with one appeal by the Revenue for AY 2010–11. These arose from a consolidated order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 30 June 2022, which upheld assessments framed under Section 153C read with Section 143(3) of the Income Tax Act, 1961, following a search action conducted under Section 132.
The assessee challenged the legality of the assessments primarily on jurisdictional grounds, arguing that the proceedings under Section 153C were initiated beyond the permissible period of limitation and were not supported by valid incriminating material. The appeals were consolidated as the issues were common across years.
A search and seizure operation was carried out on 23 July 2015 at the premises of “Shri Deepak Aggarwal, Shri Mukesh Kumar & Others.” Subsequently, the Assessing Officer (AO) recorded a combined “Satisfaction Note” on 23 March 2018 and initiated proceedings under Section 153C against the assessee covering AYs 2010–11 to 2015–16. The assessee argued that since the satisfaction note was recorded in AY 2018–19, only the six assessment years preceding that year—AYs 2012–13 to 2017–18—could be covered under Section 153C as per the law applicable before 1 April 2017. Consequently, AYs 2010–11 and 2011–12 fell outside the limitation period and were therefore barred by time.
