LANDCRAFT PROMOTERS PRIVATE LIMITED,GHAZIABAD vs. DCIT, CENTRAL CIRCLE-28, DELHI

PDF · subscribers
ITSSA 2247/DEL/2026Status: DisposedITAT Delhi24 June 2026AY 2014-153 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment initiated under Section 153C for AY 2014-15 is barred by limitation. The Tribunal followed the precedents set by the Hon'ble Delhi High Court in Commissioner of Income Tax Vs. RRJ Securities Ltd. and PCIT Vs. Sarwar Agency Private Limited. These judgments clarify that the block of six years (which is extended to ten years in the context of Section 153C for certain periods) must be construed as commencing from the date of handing over of documents seized from a searched entity to the officer of the third party (the assessee in this case). The Tribunal noted that the date of receipt of material by the assessing officer of the present assessee was admittedly 06.09.2023. Consequently, the relevant search assessment year would be AY 2024-25. Since AY 2014-15 falls beyond the 10-year period (2015-16 to 2024-25) for initiation of proceedings, the assessment order is quashed. The ground raised by the assessee was sustained.

What were the facts?

The assessee, Landcraft Promotors Pvt. Ltd., is in appeal against an assessment order dated 29.03.2024 passed by the DCIT, Central Circle-28, Delhi, under Section 153C of the Income Tax Act, 1961, for Assessment Year (AY) 2014-15. The order was upheld by the Ld. Commissioner of Income Tax (A)-25 Delhi, via an order dated 24.12.2025. The core of the assessee's challenge is that the assessment year in question falls outside the permissible block of years for search assessments under Section 153C. The revenue, represented by the CIT-DR, relied on the impugned orders.

What were the issues?

1. Whether the assessment initiated under Section 153C for AY 2014-15 is barred by limitation, given that it falls beyond the prescribed block of years for search assessments? Assessee's Contention: The assessee argued that the assessment year involved (AY 2014-15) falls beyond the 10-year block of search assessment years for which assessment could have been initiated and concluded under Section 153C. The assessee relied on the Hon'ble Delhi High Court's decisions in Commissioner of Income Tax Vs. RRJ Securities Ltd. and PCIT Vs. Sarwar Agency Private Limited. Revenue's Contention: The revenue's representative merely relied on the impugned orders.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA&

For Appellant: CA Sh. Vaibhav Goel, CA
Hearing: 03.06.2026Pronounced: 24.06.2026

P a g e | 1 IT(SS)A No. 2247/Del/2024 Landcraft Promotors Pvt. Ltd. (AY: 2014-15)

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER

IT(SS)A No.2247/Del/2024 (Assessment Year: 2014-15)

Landcraft Promotors Vs. DCIT, Central Circle-28 Private Limited Income Tax Department C/o Vaibhav Goel, 75, Jhandewalan Navyug Market, First New Delhi – 110055 Floor, Ghaziabad, Uttar Pradesh – 201001 स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AABCL2968E Appellant .. Respondent

Appellant by : Sh. Atishaya Jain, CA Sh. Vaibhav Goel, CA Respondent by : Sh. Vikram Singh Sharma, CIT-DR

Date of Hearing 03.06.2026 Date of Pronouncement 24.06.2026

O R D E R PER ANUBHAV SHARMA, JM:

This appeal preferred by the assessee against the order dated 24.12.2025 of the Ld. Commissioner of Income Tax (A)-25 Delhi

P a g e | 2 IT(SS)A No. 2247/Del/2024 Landcraft Promotors Pvt. Ltd. (AY: 2014-15) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/APL/S/250/2025-26/1084059241(1) arising out of the assessment order dated 29.03.2024 u/s 153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the DCIT, Central Circle-28, Delhi for AY: 2014-15.

2.

On hearing both sides we find that assesse has challenged the assessment order on the basis that the assessment year involved falls beyond the 10 years block of search assessment years for which assessment could have been initiated and concluded u/s 153C of the Act and ld. DR has merely relied the impugned orders.

3.

Hon’ble Delhi High Court in the case of Commissioner of Income Tax Vs. RRJ Securities Ltd, [(2016) 62 Taxmann.com 391] and PCIT Vs. Sarwar Agency Private Limited [(2017) 85 Taxmann 269] has held that the block of six years must be construed as commencing from the date of handing over of the documents seized by the officer of the searched entity to the officer of the third party, that is, assessee in this case. We find that admittedly the date of receipt of material by the assessing officer of the present assesse is 06.09.2023. Thus, the search assessment year happens to

P a g e | 3 IT(SS)A No. 2247/Del/2024 Landcraft Promotors Pvt. Ltd. (AY: 2014-15) be AY; 2024-25 and the Assessment Year involved I the appeal, 2014-15, falls beyond the 10 years period (2015-16 to 2024-25) for initiation of proceedings.

4.

In the light of aforesaid facts and circumstances the ground No. 3 is sustained and the appeal of the assesse is allowed. The impugned assessment order is quashed.

Order pronounced in the open court on 24.06.2026

Sd/- Sd/- (Amitabh Shukla) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 24.06.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

More judgments on Section 153C

All 9,619 judgments and leading authorities on Section 153C →

Recent GST High Court judgments

Search GST case law →