Genins India Insurance TPA Ltd. Vs DCIT (ITAT Delhi)
WHEN DEEMED SEARCH DATE CROSSES 01.04.2021, SECTION 153C CLOCK STOPS -SEVEN YEARS OF ASSESSMENTS QUASHED
The Delhi ITAT has held that, for a person other than the searched person, the date on which seized material is handed over to his jurisdictional AO constitutes the deemed date of search under the proviso to section 153C(1). Where such deemed date falls after 01.04.2021, section 153C(3) prohibits issuance of notice u/s 153C. The Department could proceed, if permissible, only under the reassessment provisions. Consequently, assessments u/s 153C for seven assessment years were quashed.
Facts of the case
The assessee, Genins India Insurance TPA Ltd., had filed its return for AY 2014-15 on 29.09.2014 declaring an income of ₹3,98,63,830.
A search action u/s 132 was conducted in the Alankrit Group cases. Certain documents allegedly incriminating in nature & relating to the assessee were stated to have been found at the searched premises.
The assessee’s case was thereafter centralised & a notice u/s 153C was issued on 16.12.2022.
In response, the assessee filed its return on 14.01.2023 declaring the same income of ₹3,98,63,830. The AO completed the assessment u/s 153C on 30.03.2024 at a total income of ₹7,78,17,317 after making several additions u/ss 69A & 69C.
