HIMTAJ MEDICARE,DELHI vs. DY COMMISSIONER OF INCOME TAX, DELHI

ITSSA 8172/DEL/2025Status: DisposedITAT Delhi28 September 2026AY 2016-173 pages
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What were the facts?

The assessee, Himtaj Medicare, is in appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, against the order of the Commissioner of Income Tax (Appeals)-26, Delhi. The order under challenge pertains to an assessment framed by the Assessing Officer (AO), DCIT, Central Circle-14, Delhi, under Section 153C read with Section 143(3) of the Income-tax Act, 1961, for the Assessment Year (AY) 2016-17. The assessment order was passed on 24.03.2024, and the CIT(A) order was dated 14.10.2025. The appeal arises from a search operation conducted on 22.11.2018 on Naveen Aggarwal, based on a GST search. Certain documents belonging to the assessee were found during this search and were handed over to the assessee's AO on 31.05.2022.

What did the Tribunal hold?

The Tribunal held that the Assessment Year 2016-17 falls outside the block period and therefore, no valid assessment could be framed thereon under Section 153C of the Income-tax Act, 1961. The reasoning was based on the principle that the date of search for the assessee should be considered as the date when the seized documents were handed over to the assessee's AO, which was 31.05.2022. This date falls within AY 2023-24. Following the decisions of the Hon'ble Supreme Court in CIT vs Jasjit Singh and the Hon'ble Jurisdictional Delhi High Court in PCIT Vs. Ojjus Medicare Pvt. Ltd, the block period of 10 years for the purpose of Section 153C read with Section 153A is to be reckoned from the AY in which the search takes place for the assessee. The computation of the 10-year block period was shown as AY 2023-24 (1 year), AY 2022-23 (2 years), AY 2021-22 (3 years), AY 2020-21 (4 years), AY 2019-20 (5 years), and AY 2018-19 (6 years). Consequently, AY 2016-17 falls outside this period. The assessment framed under Section 153C for AY 2016-17 was quashed as time-barred and void ab initio. The grounds raised by the assessee in this regard were allowed. Other factual and legal grounds were left undecided as they became academic.

What were the issues?

1. Whether the Assessment Year 2016-17 falls outside the block period, and consequently, no assessment could be validly framed thereon under Section 153C of the Income-tax Act, 1961, in the facts and circumstances of the case? Assessee's contentions: The assessee argued that the search operation was conducted on 22.11.2018 on Naveen Aggarwal, and documents pertaining to the assessee were seized and handed over to the assessee's AO on 31.05.2022. The assessee contended that the date of search for the assessee should be considered as 31.05.2022, which falls in AY 2023-24. Therefore, the block period of 10 years (as per Section 153C read with Section 153A) should be reckoned from AY 2023-24. Consequently, AY 2016-17 would fall outside this block period, rendering the assessment invalid. The assessee relied on the decision of the Hon'ble Supreme Court in CIT vs Jasjit Singh (458 ITR 437) and the Hon'ble Delhi High Court in PCIT Vs. Ojjus Medicare Pvt. Ltd (161 taxmann.com 160). Revenue's contentions: The judgment records no specific contentions from the revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3),Section 132A,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI M. BALAGANESH & SHRI SUDHIR KUMAR

For Respondent: Shri K. Hauthang, CIT-DR

PER SHRI M. BALAGANESH, ACCOUNTANT MEMBER:

The appeal in ITA No.8172/Del/2025 for AY 2016-17, arises out of the 1. order of the ld. Commissioner of Income Tax (Appeals)-26, Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 14.10.2025 against the order of assessment passed u/s 153C r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter refer

The order continues below.

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