Case Law Details
ACIT Vs Satish Kumar Keshri (Patna High Court)
Introduction: The Patna High Court recently delivered a landmark judgment in the case of ACIT Vs Satish Kumar Keshri, making significant clarifications related to assessments under Section 153A of the Income Tax Act, 1961. This case elaborates on the conditions under which assessments can be carried out under Section 153A, particularly in the absence of any incriminating material unearthed during a search operation.
Background of the Case: In this case, the Income Tax Appellate Tribunal (ITAT) had earlier ruled in favor of the assessee for the assessment year 2002-03. The primary question of law before the Patna High Court was whether the ITAT’s decision to deem the assessment under Section 153A as invalid was correct. This was mainly because no other assessment proceedings were pending as of the date of initiating proceedings under Section 153A.
Assessment Year and Proceedings: The original assessment for the year 2002-03 was completed under Section 143(3) on June 6, 2003. However, a subsequent search was conducted on the premises of the assessee in December 2004, following which proceedings under Section 153A were initiated.
Assessee’s Contention: The assessee argued that since no assessment was pending on the date of search, the Assessing Officer had no power to initiate a new assessment solely based on the records and income disclosed during the search operation.
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