ATS Township Pvt Ltd Vs ACIT Circle 1(1) Delhi & Ors (Delhi High Court)
Delhi High Court held that uploading of information by the investigation wing of the Income Tax department would not be a substitute for recording of a satisfaction note by the AO of searched person for handing over material to AO of person other than searched person.
Facts- The petitioner has filed the present petition impugning a notice dated 23.08.2024 issued under section 148A(b) of the Income Tax Act, 1961; an order dated 31.08.2024 passed under Section 148A(d) of the Act pursuant to the said notice; and a notice dated 31.08.2024 issued under Section 148 of the Act, in respect of assessment year (AY) 2014-15.
Conclusion- Held that uploading of information by the investigation wing of the Income Tax department would not be a substitute for recording of a satisfaction note by the AO of a searched person and handing over the assets, books of accounts or other material to the AO of the person other than the searched person for the purpose of initiation of proceedings under Section 153C of the Act.
Held that in this case, there is no reference of an asset representing income escaping assessment. Thus, reopening the assessments for a period of ten years as contemplated under Section 153A of the Act may not be applicable. In the present case, a notice has been issued beyond the period of six years from the end of the AY 2014-15 and therefore, the notice is clearly beyond the period of limitation. Thus, the petition is allowed and the impugned notices issued under Section 148A(b) and 148 of the Act, are set aside. The impugned order passed under Section 148A(d) of the Act is also set aside.
