ACIT, NEW DELHI vs. NOUVELLE SECURITIES PRIVATE LIMITED, NEW DELHI

This appeal is preferred by the Revenue against the order dated 21.08.2024 of the Commissioner of Income-tax (Appeals)-23, New Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, CO No.39/Del/2025 for short) in Appeal No.CIT(A), Delhi-23/10079/2011-12 arising out of the appeal before it against the order dated 26.03.2024 passed u/s 147 r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ACIT, CC-4, Delhi (hereinafter referred to as the Ld. AO). The assessee has filed Cross Objection.

Heard and perused the record. Although the ld. DR has heavily relied the order of the ld. AO, quite apparently, we find that the ld.CIT(A) has benefitted the assessee primarily relying the decision of the Hon’ble jurisdictional High Court in the case of Ojjus Medicare Pvt Ltd & Others [2024] 161 taxmann.com and CIT Versus RRJ Securities [2015]62taxmann.com 391 (Delhi) by concluding that the assessment for the relevant assessment year 2012-13 was beyond the period of ten years and calculated from the date of recording of satisfaction of 24.03.2023. Admittedly, a search was conducted on the premises of Filatex group on 01.09.2021 and based on the search, the ld. AO had recorded satisfaction in case of the assessee to reopen the case of the assessee. It is now the settled proposition of law that recording of satisfaction note is key event and that gives rise to computation of ten years for the purpose of calculating the reassessment and assessment year 2012-13 is beyond the period of ten years. Thus, assumption of jurisdiction by issuing notice u/s 148 of the Act was vitiated for which the ld.CIT(A) has benefited the assessee and we find no reason to interfere in the same. The appeal of the Revenue has no