Section 153C block period reckons from satisfaction note and seized material receipt, making the section 143(3) assessment unsustainable.

For assessment year 2021-22, the relevant six-year block for section 153C proceedings was to be counted from the deemed date of search, namely when the satisfaction note was recorded and the seized material was received by the jurisdictional Assessing Officer of the non-searched person. Applying the settled position stated to have been affirmed by the Supreme Court and the jurisdictional HC, the year fell within that block period, so the assessment ought to have been framed under section 153C and not under section 143(3). The contrary notice and assessment were treated as unsustainable, and the Revenue's challenge failed.

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Issues: Whether the assessment for assessment year 2021-22 was required to be framed under section 153C of the Income-tax Act, 1961, on the basis of the date of recording of satisfaction and receipt of seized material, instead of under section 143(3) of the Income-tax Act, 1961.

Analysis: The assessment year in question was held to fall within the six assessment years to be counted from the deemed date of search, i.e. the date on which the satisfaction note was recorded and the seized material was received by the jurisdictional Assessing Officer of the non-searched person. The legal position was treated as settled by the Supreme Court and the jurisdictional High Court, which held that the relevant block period under section 153C is to be reckoned from that date and not from the date of the original search. On that basis, the year under consideration fell within the six-year block period applicable to proceedings under section 153C.

Conclusion: The assessment ought to have been made under section 153C and not under section 143(3); the contrary assessment and notice were held unsustainable, and the Revenue's challenge failed.

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