NIVEDAN BHARADWAJ vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-19, DELHI & ORS.

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W.P.(C)/17933/2024HC DelhiDLHC01098760202424 December 2024Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA2 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court allowed the petition. The Court accepted the concession made by the Revenue's counsel that the notice dated 15.09.2023 under Section 153C of the Income Tax Act, 1961, issued for assessment year 2015-16, was barred by limitation. The Court found merit in the petitioner's argument that the notice was issued beyond the prescribed period. Consequently, the impugned notice was set aside. The ratio of this decision is that if a notice under Section 153C is demonstrably beyond the statutory limitation period, it is liable to be quashed, especially when the Revenue concedes to this fact. The petition was allowed in terms of setting aside the notice, and pending applications were disposed of.

What were the facts?

The petitioner, Nivedan Bharadwaj, challenged a notice dated 15.09.2023 issued under Section 153C of the Income Tax Act, 1961, for assessment year 2015-16. The petitioner contended that the notice was barred by limitation. The Revenue, represented by the Assistant Commissioner of Income Tax, Central Circle-19, Delhi, conceded that the petitioner's contentions were correct and the notice was indeed beyond the period of limitation. The satisfaction note of the Assessing Officer for the searched person was recorded on 23.08.2023. The petitioner also provided a tabular statement illustrating the six-year block period for assessments under Section 153C read with Section 153A.

What were the issues?

1. Whether the notice dated 15.09.2023 under Section 153C of the Income Tax Act, 1961, for assessment year 2015-16 is barred by limitation? (Question of law) Assessee's Contention: The impugned notice is barred by limitation. The petitioner relied on a tabular statement demonstrating the computation of the six-year block period as provided under Section 153C read with Section 153A of the Act. Revenue's Contention: The Revenue's counsel fairly stated that the contentions advanced by the petitioner were correct and the impugned notice was beyond the period of limitation. The learned counsel for the Revenue concurred with the petitioner's submissions.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 142(1)

AI-generated summary — verify with the full judgment below

$~20. * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17933/2024 CM APPL. 76272/2024 CM APPL. 76273/2024 NIVEDAN BHARADWAJ .....Petitioner Through: Mr. Nitin Gulati, Ms. Reena Gandhi, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-19, DELHI & ORS. ....Respondent Through: Mr. Debesh Panda, SSC with Ms. Zehra Khan, JSC and Mr. Vikramaditya, JSC. CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 24.12.2024 1. The petitioner has filed the present petition impugning the notice dated 15.09.2023 (hereafter the impugned notice) under Section 153C of the Income Tax Act, 1961 (hereafter the Act) as well as the notice under Section 142(1) of the Act, inter alia, on the ground that the impugned notice is barred by limitation. The impugned notice was issued on 15.09.2023 in respect of assessment year 2015-16. 2. The learned counsel appearing for the Revenue fairly states that the contentions advanced by the petitioner are correct and the impugned notice is beyond the period of limitation. 3. The satisfaction note of the Assessing Officer for searched person was recorded on 23.08.2023, which is relevant to the assessment year 2024-25. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:33:44

The petitioner has set out a tabular statement in his objections to the impugned notice indicating the block of six years in respect of which assessments could be re-opened under Section 153C of the Act. The said tabular statement is set out below: “ Computation of the six-year block period as provided under Section 153C read with Section 153A of the Act No. of years AY 2023-24 1 AY 2022-23 2 AY 2021-22 3 AY 2020-21 4 AY 2019-20 5 AY 2018-19 6 ” 4. The learned counsel for the Revenue concurs with the above submissions. Accordingly, the impugned notice is set aside. 5. The petition is allowed in the aforesaid terms. Pending applications also stand disposed of. VIBHU BAKHRU, ACJ TUSHAR RAO GEDELA, J DECEMBER 24, 2024 N.Khanna This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:33:44

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