Ajay Goenka Vs DCIT (ITAT Delhi)
Old Search, New Satisfaction — Section 153C Misses the Cut-Off; Delhi ITAT Quashes Assessments &; Says 147/148 Was the Only Route
Summary: The Delhi ITAT dealt with an interesting transitional issue concerning section 153C after its amendment by Finance Act, 2021. Though the original search on the Alankrit Group had taken place way back on 18.10.2019, the satisfaction in the case of the assessee, who was an “other person”/non-searched person, was recorded only on 12.05.2023. The Tribunal held that for such other person, the relevant search date shifts to the date of handing over of seized material or, where that date is unavailable, the date of recording satisfaction. Consequently, the post-01.04.2021 regime applied & assessment could not be made u/s 153C.
Search Was in 2019 — But That Was Not the Relevant Date
The assessee challenged assessments for AYs 2017-18 to 2020-21 as being without jurisdiction, barred by limitation & contrary to the statutory framework of section 153C.
The Revenue’s case originated from a search on the Alankrit Group on 18.10.2019. However, the AO recorded satisfaction for initiating proceedings against Ajay Goenka only on 12.05.2023. Thereafter, upon receipt of the relevant material from the AO of the searched person, notice u/s 153C was issued & assessments were completed under that provision.
