Shivdham Buildtech Pvt. Ltd Vs JCIT (ITAT Delhi)
The ITAT Delhi allowed all three appeals after holding that the assessment proceedings initiated under Section 153C were without jurisdiction. The Tribunal observed that where the date of handing over seized material to the Assessing Officer of the other person is unavailable, the date of recording the satisfaction note becomes the relevant date for determining jurisdiction. Since the satisfaction note was recorded on 11.10.2022, after the Finance Act, 2021 amendments became effective from 01.04.2021, proceedings under the unamended Section 153C could not be sustained. For AYs 2015-16 and 2016-17, the Tribunal further held that the assessments were beyond the statutory limitation and therefore invalid. With respect to AY 2017-18, it ruled that the notice issued under Section 153C and the consequent assessment order were legally unsustainable for want of jurisdiction, relying on judicial precedents interpreting the amended provisions. Consequently, the Tribunal quashed all the impugned assessment orders and allowed the assessee’s appeals, reaffirming that jurisdiction under Section 153C must strictly comply with the amended statutory framework.
Core Issue. The principal issue before the Tribunal was whether proceedings under section 153C could validly be initiated against a person other than the searched person when the relevant date under the first proviso to section 153C(1), namely the date of handing over of the seized material or, in its absence, the date of recording of satisfaction, fell after 01.04.2021. The Tribunal also examined whether the assessments for AYs 2015-16 and 2016-17 were beyond the permissible assessment years and barred by limitation under section 153C.
