Date Of Satisfaction Note Is To Be Reckoned As Date Of Handing Over Material, For Initiation Of Proceedings U/s 153C: Delhi ITAT

The Bench of Challa Nagendra Prasad (Judicial Member) and Dr. BRR Kumar (Accountant Member) observed that “in the absence of mentioning the date of handing over of the materials the date of satisfaction note shall be reckoned as the date of handing over of the materials and consequently the time limit of calculating the six years has to be calculated from this date.” (Para 6)

As per the brief facts of the case, the initiation of proceedings u/s 153C for AY 2008-09 on Feb 02, 2016 on which date the AO had recorded his satisfaction for taking up the case of the assessee u/s 153C and issuing notice u/s 153C for making an assessment was challenged by the assessee to be bad in law.

The Bench observed that an identical issue has been decided by the coordinate bench in the case of ACIT vs. M/s Ankit Nivesh & Management Pvt. Limited [ITA No.4051 & 4052/Del/2017], wherein it was held that since there is no specific date of handing of material in the satisfaction note, the date of satisfaction note is to be reckoned as the date of handing over the material and the time limit calculating the six years has to be calculated from this date.

In the case on hand also, the date of handing over of the materials was not mentioned in the satisfaction note, added the Bench.

Hence, observing that the time limit of calculating the six years has to be calculated from Feb 02, 2016, the ITAT held that the assessment made u/s 153C r.w.s. 153A is time barred.

Counsel for Appellant/ Revenue: Ashis Chandra Mohanty

Counsel for Respondent/ Assessee: C.S Anand

Case Title: ACIT verses Enpro Telecom Pvt Ltd.

Case Number: I.T.A No.591/Del/2022

Click here to read/ download the Order