DCIT, JHANDEWALAN, NEW DELHI vs. MISHA GUPTA, DELHI

ITA 1175/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2014-1598 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal, respectfully following the judgment of the jurisdictional Delhi High Court in PCIT(Central-1) v. Ojjus Medicare Pvt. Ltd. The CIT(A) had correctly held that Assessment Year 2014-15 fell beyond the six assessment years preceding the assessment year relevant to the previous year in which the search was conducted. The Tribunal noted that the Hon'ble Delhi High Court in Ojjus Medicare held that for Section 153C, the date of search in the case of a non-searched person is deemed to be the date of receiving the seized material by the jurisdictional AO. The CIT(A) had determined the relevant period for Section 153C to be AY 2017-18 to AY 2022-23, making AY 2014-15 fall outside this period. The Tribunal also referred to directions issued by the Delhi High Court in a separate writ petition concerning the assessee (Misha Gupta v. ACIT) for AY 2016-17, which quashed the notice under Section 153C and directed the AO to re-examine the issue based on specific observations. The Tribunal issued similar directions for AY 2014-15 and directed the AO to implement them. The parties are bound by the outcome of the SLP filed by the Revenue against the Ojjus Medicare judgment before the Supreme Court. The additions made by the AO were consequently deleted by the CIT(A) and upheld by the Tribunal.

What were the facts?

The Revenue (DCIT) filed an appeal against the order of the CIT(A) for Assessment Year 2014-15. The assessment was initiated under Section 153C of the Income-tax Act, 1961, following search and seizure operations under Section 132 on Alankit Group and its associates on October 18, 2019. Incriminating documents related to the assessee, Misha Gupta, were found at a third party's premises. The Assessing Officer (AO) issued a notice under Section 153C on June 29, 2022. The AO made additions of Rs. 3,91,905 under Section 68 and Rs. 11,757 under Section 69C, totaling Rs. 4,03,662, increasing the assessee's total income to Rs. 9,03,610 from the returned income of Rs. 4,99,950. The CIT(A) deleted these additions, holding the assessment year 2014-15 to be beyond the stipulated period for invoking Section 153C.

What were the issues?

1. Whether the Ld. CIT(A) erred in deleting the addition of Rs. 3,91,905 made under Section 68 of the Income Tax Act, 1961. The Revenue contends the CIT(A) erred. The assessee did not present arguments as they were absent. 2. Whether the Ld. CIT(A) erred in deleting the addition of Rs. 11,757 made under Section 69C of the Income Tax Act, 1961. The Revenue contends the CIT(A) erred. The assessee did not present arguments as they were absent. 3. Whether the computation of the block period under Section 153C and 153A of the Income Tax Act, 1961, as interpreted by the Hon'ble High Court in Ojjus Medicare Pvt. Ltd., aligns with legislative intent and CBDT Circular No. 2/2018. The Revenue questions this alignment. 4. Whether the Hon'ble High Court was justified in holding that block periods for assessment under Section 153C are calculated from the date of receipt of seized material by the jurisdictional AO of the non-searched person, even after the Finance Act, 2017 clarified the block period calculation. The Revenue questions this interpretation, asserting the block period should be calculated from the assessment year relevant to the previous year of search. The Revenue argued that the CIT(A) erred in deleting the additions. The assessee was absent and presented no arguments. The Revenue also raised grounds concerning the interpretation of the block period under Section 153C and 153A, relying on the judgment in Ojjus Medicare Pvt. Ltd. and CBDT Circular No. 2/2018, and questioning the calculation of the block period from the date of receipt of seized material by the jurisdictional AO.

Which sections of the Income-tax Act were involved?

Section 153C,Section 132,Section 68,Section 69C,Section 250,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI

Before: SHRI RAMIT KOCHAR

For Respondent: Shri K.Haudhang, CIT-DR
Hearing: 06.07.2026Pronounced: 29.09.2026

2 ITA No. 1175/Del/2026 DCIT v. Misha Gupta

2.

The Revenue has raised following ground

The order continues below.

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