Section 153C limitation computed from handover of seized material; assessment year 2014-15 was held beyond jurisdiction.

For proceedings under section 153C, limitation is computed from the end of the financial year in which seized material is handed over, or deemed to be handed over, to the Assessing Officer of the other person. Applying that rule, the permissible block covered assessment years 2015-16 to 2020-21, so assessment year 2014-15 fell outside the six-year span. The defect was jurisdictional, rendering the assessment under section 144 read with section 153C void ab initio. The ITAT, Mumbai accordingly quashed the assessment in favour of the assessee.

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Issues: Whether the assessment for assessment year 2014-15 under section 144 read with section 153C was barred by limitation and therefore without jurisdiction.

Analysis: The satisfaction under section 153C was recorded on 14.10.2020. The governing principle applied was that, for proceedings under section 153C, the relevant six assessment years are to be reckoned from the end of the financial year in which the seized material is handed over to the Assessing Officer of the other person, or deemed to be handed over where the same Assessing Officer handles both persons. On that basis, the permissible block ran from assessment years 2015-16 to 2020-21. Assessment year 2014-15 fell outside that block. The defect went to the root of jurisdiction and rendered the assessment void.

Conclusion: The assessment for assessment year 2014-15 was time-barred and void ab initio, and was quashed in favour of the assessee.

Ratio Decidendi: For proceedings under section 153C, limitation is computed from the end of the financial year in which seized material is handed over, or deemed to be handed over, to the Assessing Officer of the other person, and an assessment beyond that permissible block is without jurisdiction.

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