What will be date of search for non-searched person for computing period of limitation?
Respected Members
?
Dive into jurisprudence, watch out today's income tax case law video to get a concise exploration of legal principles and their real-world applications.
?
What will be date of search for non-searched person for computing period of limitation?
?
YouTube video link for Hindi video:?https://www.youtube.com/watch?v=dLs-hbOEjB4
?
YouTube video link for English video:?https://www.youtube.com/watch?v=RqG5iyZedx8
?
YouTube shorts video link:?https://www.youtube.com/shorts/gHgWwvfV7P0
?
Short note of today's case law for quick reference:
?
[2024] 114 ITR (Trib) (S.N.) 24 (ITAT[Del])
[BEFORE THE INCOME-TAX APPELLATE TRIBUNAL — DELHI "E" BENCH]
?
ESHA SECURITIES P. LTD.
v.
DEPUTY COMMISSIONER OF INCOME-TAX
?
(and vice versa)
______
SAKTIJIT DEY (Vice President) and NAVEEN CHANDRA (Accountant Member)
?
May 30, 2024.
?
1) U/s 153C, the commencement date for computation of the 6 assessment years is deemed to be the date of receipt of books of account, materials and assets, belonging or pertaining to non-searched person, by the jurisdictional A.O. of the non-searched person.
?
2) In other words, the date of recording of the satisfaction in the case of the searched person qua the non-searched person becomes date of search in the case of non-searched person.
?
3) The contention of the assessee was that the assumption of jurisdiction u/s 153C of the Act for the A.Y. 2004-05 on the basis of satisfaction recorded on 23.11.2010 was not sustainable.
?
4) ITAT held that: The date of search would become the date of recording satisfaction i.e November 23, 2010.
?
5) The AY 2004-05 would therefore fall beyond the period of six assessment years as reckoned with reference to the date of recording of satisfaction by the Assessing Officer of the searched person. The assessment order was without jurisdiction.