Popatbhai Talashibhai Savani Vs PCIT (ITAT Surat)
The Surat Bench of the ITAT allowed the assessee’s appeals for AYs 2013-14 and 2014-15 and quashed the revisionary orders passed under section 263. The Tribunal held that the very foundation of the Principal Commissioner’s action—namely, the assessment framed under section 143(3) read with section 153C—was legally unsustainable as it was barred by limitation.
Relying on the Supreme Court decision in CIT v. Jasjit Singh, the Tribunal reiterated that in the case of an “other person” under section 153C, the six-year block period has to be reckoned from the date on which seized material is handed over to the jurisdictional Assessing Officer, and not from the date of search. Since the assessment years in question fell outside the permissible period computed on this basis, the assessment itself was null and void. Consequently, no useful purpose would be served by sustaining a section 263 order seeking to revise such an invalid assessment. The revisionary orders were therefore set aside and both appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
These two appeals filed by the assessee are directed against the separate orders passed by the learned Principal Commissioner of Income-Tax (Central), Surat [herein-after referred to as “PCIT”] dated 29.03.2025 and 30.03.2025 respectively, in exercise of revisionary powers under Section 263 of the Income-tax Act, 1961 [hereinafter referred to as “the Act”], for the Assessment Years (AY) 2013-14 & 2914-15.
