Section 153A limitation barred for assessment year 2010-11 because the ten-year block was wrongly computed from the search year

For computing the ten assessment years under section 153A read with Explanation 1, the Tribunal applied the binding rule that the period runs from the end of the assessment year relevant to the previous year in which the search was conducted. On that basis, assessment year 2010-11 fell outside the permissible ten-year block. The Tribunal therefore held that the notice and consequential assessment were barred by limitation and that assumption of jurisdiction under section 153A was invalid, rendering the additions academic.

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Issues: Whether the notice and assessment framed under section 153A for assessment year 2010-11 were barred by limitation because the relevant ten assessment years had to be reckoned from the end of the assessment year relevant to the year of search.

Analysis: The Tribunal followed the binding view that, for computing the ten assessment years under section 153A and Explanation 1 thereto, the starting point is the end of the assessment year relevant to the previous year in which the search was conducted. On that computation, assessment year 2010-11 fell outside the permissible block of ten years. The Tribunal therefore treated the assumption of jurisdiction under section 153A as invalid, and the merits of the additions were rendered academic.

Conclusion: The notice and consequential assessment under section 153A for assessment year 2010-11 were held to be barred by limitation and without jurisdiction, and the Revenue's appeal failed.

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