Date of Satisfaction Recording for Searched Person is deemed Date of Search for Non-Searched Person

Esha Securities Pvt Ltd Vs DCIT (ITAT Delhi)

The case of Esha Securities Pvt Ltd vs. DCIT (ITAT Delhi) delves into a critical interpretation of the Income-tax Act, 1961, specifically regarding the date of search for non-searched persons. The decision addresses the jurisdictional issues and the applicability of Section 153C in the context of searches and seizures, shedding light on the ramifications for non-searched entities when documents pertaining to them are discovered during a search on another entity.

Background of the Case

Esha Securities Pvt Ltd filed an appeal against the DCIT’s assessment, which stemmed from a search action on Bhushan Steel Group on March 3, 2010. During this search, documents belonging to Esha Securities were found, prompting the issuance of a notice under Section 153C of the Income-tax Act. The crux of the case centered on the date when the satisfaction of the assessing officer was recorded (November 23, 2010), and its implications for the jurisdiction over the assessment years.

Arguments Presented

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