Triple S Stock and Shares Pvt Ltd Vs ITO (Delhi High Court)
In Triple S Stock and Shares Pvt Ltd. Vs ITO, the Delhi High Court examined whether an earlier assessment order continued to survive after a fresh assessment order was passed under Section 153A of the Income Tax Act following a search operation.
The assessee challenged the order of the Income Tax Appellate Tribunal dated 16.12.2024, which had rejected the assessee’s contention that the earlier assessment order dated 29.12.2008 stood abated after a subsequent assessment under Section 153A was passed on 26.12.2011.
The original assessment order dated 29.12.2008 had been passed under Section 143(3) for Assessment Year 2006-07 and involved disallowance of short-term capital loss. The assessee’s appeal before the Commissioner of Income Tax (Appeals) was dismissed on 20.03.2014, after which an appeal was filed before the Tribunal.
Meanwhile, a search was conducted at the assessee’s premises on 26.03.2010, leading to block assessment proceedings under Section 153A read with Section 143(3) for six assessment years, including Assessment Year 2006-07. In the fresh assessment order dated 26.12.2011, the Assessing Officer did not disallow the short-term capital loss.
Before the Tribunal, the assessee argued that the original assessment order stood abated because of the subsequent Section 153A proceedings. The Tribunal rejected this argument. Before the High Court, however, the assessee clarified that the correct legal position was not that the earlier assessment had abated, but that once a fresh assessment order under Section 153A was passed for the same assessment year, the earlier assessment order stood reopened and merged with the subsequent order.
