Assumption of jurisdiction under s.153C invalidated where satisfaction note shows records handed in FY2022-23, limiting six-year block from AY2023-24

ITAT, Delhi (AT) held the assumption of jurisdiction under s.153C vitiated. The satisfaction note dated 18.04.2022 established the record was handed over in FY 2022-23, so the six-year limitation block runs from AY 2023-24; notices under s.153C could only be validly issued from AY 2018-19 onwards. Assessments for AY 2013-14 and AY 2014-15 thus fell outside the six-year block and the assessee's appeal was allowed.

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Return originally filed 29.07.2013; during search and seizure in another case on 14.10.2020 incriminating documents in the name of a deceased person were seized. Proceedings under section 153C were initiated on 20.05.2022; the return filed under section 153C was treated as invalid and a best judgment assessment was framed under section 153C read with section 144. Reliance placed on Supreme Court and High Court precedents regarding the six-year limitation under section 153C being calculated from the date of handing over of seized material to the assessee's AO. The satisfaction note (Annexure-A) dated 18.04.2022 was held to be the date of handing over; therefore the six-year block runs from financial year 2022-23 (AY 2023-24) onward. Consequently the AO "could have issued notice u/s 153C of the Act for AY 2018-19 onwards for AY 2023-24." The assessments for AY 2013-14 and AY 2014-15 were held to fall outside the six-year period, and the "assumption of jurisdiction u/s 153C of the Act was vitiated." Impugned assessments quashed.

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