Income Tax Appellate Tribunal Delhi Acit, New Delhi vs M/S. N.S. Software, New Delhi on 5 February, 2020 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES "A" : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA.No.3161/Del./2016 Assessment Year 20102011 The ACIT, M/s. N.S. Software, Central Circle7, Room 12, Ring Road, Lajpat No.330, ARA Centre, vs. NagarIV, New Delhi PIN 110024 Jhandewalan Extesnion, PAN AAEFN9135B New Delhi. (Appellant) (Respondent) Shri Sanjay Goel, CITD.R. For Revenue : Shri S.L. Anuragi, Sr. D.R. For Assessee : Shri Sudesh Garg, Advocate Date of Hearing : 04.02.2020 Date of Pronouncement : 05.02.2020 ORDER PER BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A)23, New Delhi, Dated 28.03.2016, for the A.Y. 20112012, on the following grounds : 1. "The order of Ld. CIT(A) is not correct in law and facts. 2 ITA.No.3161/Del./2016 M/s. N.S. Software, New Delhi. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in quashing the order u/s 143(3) for the last year in the period to be covered u/s 153C of the Act. 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in holding that the date of recording of satisfaction note instead of date of search is to be taken as the base date for calculating the period to be covered u/s 153C of the Act. 4. On the facts and circumstances of the case, the Ld. CIT(A) has erred in holding that no addition can be done u/s 153C in the case of completed assessment, if no incriminating document has been found during search." 2. Briefly the facts of the case are that return of income was filed originally on 21.09.2010 declaring NIL income. The same was processed under section 143(1) of the I.T. Act, 1961. A.O. issued notices under sections 143(2) as well as 142(1) of the I.T. Act, 1961. The A.O. noted that 3 ITA.No.3161/Del./2016 M/s. N.S. Software, New Delhi. search and seizure operation under section 132 of the I.T. Act, 1961 was carried out in Raj Darbar Group of Cases on 31.07.2008. The assessee was incorporated on 15.03.2004. During the year under consideration, assessee has claimed deduction of Rs.2,58,07,534/ under section 80IA of the I.T. Act, 1961 which A.O. has denied and made the addition. The assessment was completed under section 143(3) of the I.T. Act, 1961, Dated 18.03.2013. 2.1. The assessee challenged the addition on merits before the Ld. CIT(A) and also taken additional ground of appeal stating therein that A.O. has erred in assessing the assessee without satisfying the substantive and procedural requirement under section 153C of the I.T. Act, 1961 and that A.O. has erred in making the addition which are not based on any incriminating material found during the course of search. The detailed written submissions of the assessee on merits is reproduced in the impugned order. 2.2. The assessee also submitted before the Ld. CIT(A) that A.O. has provided inspection of the record and also provided copy of the satisfaction note recorded by him 4 ITA.No.3161/Del./2016 M/s. N.S. Software, New Delhi. before issuing notice under section 153C of the I.T Act. Copy of the satisfaction note was provided by A.O. was filed before the Ld. CIT(A) which is also reproduced in the impugned order. The satisfaction note is Dated 23.07.2010, in which the A.O. has mentioned that search was conducted in the case of Raj Darbar Group of Cases on 31.07.2008. During the course of search operation, various papers were found and seized belonging to the assessee firm which are noted in the satisfaction note. The assessee referred to provisions of Section 153C of the I.T. Act and relied upon Judgment of Hon'ble Delhi High Court in the case of RRJ Securities Ltd., 62 taxmann.com 391 (Del.) on the proposition that assessment under section 153C are the assessment years s