Appeal Dismissed as Infructuous Due to Quashed Order & Amendment Inapplicability

The Tribunal dismissed the Revenue's appeal as infructuous due to the quashing of the assessment order and the inapplicability of the amended provisions of sections 153A and 153C. The delay in filing the appeal was attributed to Covid-19 restrictions. The Tribunal emphasized that the relevant date for applying section 153C is the date of recording of satisfaction by the Assessing Officer of the searched person, which in this case was before the amendment date, rendering the assessment order invalid.

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Issues Involved:
1. Delay in Filing the Appeal
2. Quashing of Assessment Order
3. Applicability of Amendments to Sections 153A and 153C

Summary:

1. Delay in Filing the Appeal:
The Registry noted a delay of 44 days in filing the appeal, which was ignored due to Covid-19 restrictions.

2. Quashing of Assessment Order:
The Tribunal had previously quashed the assessment order for the same assessment year in the assessee's cross appeal, rendering the Revenue's current appeal infructuous. The Departmental Representative accepted this factual position.

3. Applicability of Amendments to Sections 153A and 153C:
The Tribunal analyzed the dates and events:
- 07.04.2016: Search and seizure operation under section 132 conducted.
- 29.03.2019: Satisfaction recorded by the Assessing Officer of the searched person.
- 15.09.2019: Satisfaction recorded by the Assessing Officer of the assessee.

The Tribunal noted that the amendment to sections 153A and 153C by Finance Act, 2017, effective from 01.04.2017, applies prospectively from the assessment year 2017-18. The search in this case occurred on 07.04.2016, before the amendment, making the amended provisions inapplicable. The Tribunal cited various judicial precedents, including the Hon'ble Delhi High Court's decision in PCIT Vs. Sarwar Agency P. Ltd., to support this interpretation.

The Tribunal emphasized that the relevant date for applying the provisions of section 153C is the date of recording of satisfaction by the Assessing Officer of the searched person. Since the search date was prior to the amendment, the assessment order was deemed invalid and quashed.

Conclusion:
The Tribunal dismissed the Revenue's appeal as infructuous, following the quashing of the assessment order and the inapplicability of the amended provisions of sections 153A and 153C. The order was pronounced in the open court on 11th May, 2023.

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