ACIT CENTRAL CERCLE-1, GURGAON V. ASHOKA TRADERS PVT LTD, FARIDABAD

ITA 2678/DEL/2022

AI Insights

The case involves four appeals by the Assistant Commissioner of Income Tax, Central Circle-1, Gurgaon against Ashoka Traders Pvt. Ltd., concerning the validity of assessments for the Assessment Years 2012-13 to 2015-16 under section 153C read with section 143(3) of the Income Tax Act, 1961. The primary legal issue was the validity of the section 153C assessments, specifically whether the assessments for the mentioned years fell within the permissible period as amended by the Finance Act, 2017. The Tribunal examined the satisfaction note of the Assessing Officer and the applicability of the statutory amendment to determine the correctness of the assessments.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471626 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-11-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 11-11-2022
• Other Referred Cases: PCIT Vs. Ojjus Medicare Pvt. Ltd. & Others (2024) 465 ITR 101 (Del.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAVED AKHTAR
• Assessee Lawyers: PARUL AGARWAL
• Section: 143(3); 119; 153C; 101

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh, Accountant Member ITA Nos. 2678 to 2681/Del/2022 (Asstt. Years : 2012-13 to 2015-16) ACIT, Central Circle-1, Gurgaon, Haryana Vs Ashoka Traders Pvt. Ltd., H.No. 597, Sector-16A, Faridabad, Haryana-121001 (APPELLANT) (RESPONDENT) PAN No. AAECA6779K Assessee by : Ms. Parul Agarwal, CA Revenue by : Mr. Javed Akhtar, CIT-DR Date of Hearing: 20.11.2024 Date of Pronouncement: 27.11.2024 ORDER Per Satbeer Singh Godara, Judicial Member: These Revenue’s instant four appeals ITA Nos. 2678 to 2681/Del/2022, for Assessment Years 2012-13 to 2015-16, arise against the CIT(A)-3, Gurgaon’s common orders dated 31.08.2022 in case No. 10213, 10289, 10689 & 11074/CIT(A)- 3/GGN/2021-22 in proceedings u/s 153C r.w.s. 143(3) of the Income Tax Act, 1961 (in short “The Act”). 2. Heard both parties at length. Case files perused. 3. It transpires during the course of hearing that the Revenue’s instant four appeals raise the first and foremost question of validity of the impugned section 153C assessment itself going to root of the matter. This is for the precise reason that section 153C(1) first proviso stipulates that in case of a person other than the searched person against whom the ITA Nos. 2678 to 2681/Del/2022 Ashoka Traders Pvt. Ltd. 2 relevant proceedings are to be initiated, the date of initiation of search………………..shall be construed as reference to the date of receiving the books of account or documents………….by the Assessing Officer having jurisdiction. We note in this statutory backdrop that the learned Assessing Officer had recorded his section 153C satisfaction on 07.06.2021 which ought to be taken as the date of initiation of search in very terms. 4. Faced with this situation, we invited learned CIT-DR’s attention to the fact that counting backward from this clinching date, the relevant six assessment years immediately preceding to the assessment year do not cover these four assessment years A.Y.’s 2012-13 to 2015-16. Mr. Akhtar at this stage quoted the statutory amendment inserted “for the relevant assessment year or years referred to sub-section (1) to section 153A(1) proviso made applicable to section 153C(1) to buttress the point that these four assessment years very well fall within “ten” assessment years and therefore, the impugned proceedings have been validity initiated against the assessee. 5. We have given our thoughtful consideration of the Revenue’s foregoing vehement contentions and find no merit therein in light of PCIT Vs. Ojjus Medicare Pvt. Ltd. & Others (2024) 465 ITR 101 (Del.) wherein their lordships made it clear in para 119 (G) and (H) that the corresponding section 153C satisfaction note itself must take note of the relevant conditions as per the foregoing amendment made applicable by the legislature vide Finance Act, 2017 w.e.f. 01.04.2017 onwards. 6. We wish to make it clear that neither the learned Assessing Officer’s assessment nor the departmental side during the course of hearing has been able to prove the ITA Nos. 2678 to 2681/Del/2022 Ashoka Traders Pvt. Ltd. 3 foregoing compliance for the purpose of invoking the amended provision in assessee’s case by producing the relevant satisfaction note. We thus find merit in the assessee’s instant first and foremost legal argument and quash all these four assessments in very terms. Ordered accordingly. 7. All other pleadings on merit in these four appeals stand rendered academic. 8. These Revenue’s four appeals ITA Nos. 2678 to 2681/Del/2022 are dismissed in above terms. A copy of this common order be placed in the respective case files. Order Pronounced in the Open Court on 27/11/2024. Sd/- Sd/- (M. Balaganesh) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 27/11/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "