SURENDER PAL GUPTA vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 28 DELHI & ORS.

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W.P.(C)/33/2025HC DelhiDLHC01099390202407 January 2025Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA4 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court allowed the writ petitions and set aside the impugned notices dated 30.06.2023 issued under Section 153C of the Income Tax Act, 1961. The Court noted that the issue was covered by its earlier decisions in Principal Commissioner of Income Tax Central 1 v. Ojjus Medicare Pvt. Ltd. & Ors., Commissioner of Income Tax- 7 v. RRJ Securities Ltd., and Saksham Commodities Limited v. Income Tax Officer Ward 22(1), Delhi & Anr. Based on these precedents, the Court found the notices to be barred by limitation. Consequently, the notices issued under Sections 143(2) and 142(1) of the Act, which were consequential to the Section 153C notices, were also set aside. The Court did not leave any issue undecided.

What were the facts?

The petitioner, Surender Pal Gupta, filed writ petitions challenging notices issued under Section 153C of the Income Tax Act, 1961. These notices sought to reopen assessments for Assessment Years (AY) 2010-11 to AY 2013-14. The petitioner contended that the notices, dated 30.06.2023, were barred by limitation, as the statutory periods for reopening assessments under Section 153C should be reckoned from this date, making the subject AYs beyond the permissible period. The Revenue argued that the limitation period should be reckoned from the date the Assessing Officer of the searched person recorded satisfaction that the seized material belonged to the petitioner. Even considering 23.06.2022 as a relevant date, the Revenue conceded that the 10-year period for issuing a notice under Section 153C read with Section 153A would be computed from the end of the assessment year relevant to the satisfaction date, making the AYs 2010-11 to 2013-14 beyond this period.

What were the issues?

1. Whether the notices issued under Section 153C of the Income Tax Act, 1961, dated 30.06.2023, for reopening assessments for AY 2010-11 to AY 2013-14 are barred by limitation? Assessee's contention: The limitation period for issuing notices under Section 153C should be calculated from the date of issuance of the notices (30.06.2023). As the assessment years in question fall outside the prescribed six or ten-year period from this date, the notices are time-barred. Revenue's contention: The limitation period should be reckoned from the date the Assessing Officer of the searched person recorded satisfaction that the seized material pertained to the assessee. Even if a date like 23.06.2022 is considered, the ten-year period for Section 153C notices (read with Section 153A) is computed from the end of the assessment year relevant to the satisfaction date. The Revenue conceded that AYs 2010-11 to 2013-14 would be beyond this period.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

W.P.(C) 33/2025
W.P.(C) 35/2025
W.P.(C) 37/2025

Read from the judgment's own cause title. This page is filed under one of them.

$~44, 45, 47 & 48 * IN THE HIGH COURT OF DELHI AT NEW DELHI (44) + W.P.(C) 33/2025 CM APPL. 83/2025 CM APPL. 84/2025 CM APPL.

85/2025

SURENDER PAL GUPTA

.....Petitioner Through: Mr. N.P. Sahni, Mr. Abhinav Jain and

Ms. Vidhi Mangla, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL

CIRCLE 28 DELHI & ORS.

.....Respondents Through: Mr. Gaurav Gupta, SSC alongwith Mr.

Shivendra Singh and Mr. Yojit Pareek,

JSCs for IT Department.

(45) + W.P.(C) 35/2025 CM APPL. 87/2025 CM APPL. 88/2025 CM APPL.

89/2025

SURENDER PAL GUPTA

.....Petitioner Through: Mr. N.P. Sahni, Mr. Abhinav Jain and

Ms. Vidhi Mangla, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL

CIRCLE 28 DELHI & ORS.

.....Respondents Through: Mr. Gaurav Gupta, SSC alongwith Mr.

Shivendra Singh and Mr. Yojit Pareek,

JSCs for IT Department.

(47) + W.P.(C) 37/2025 CM APPL. 94/2025 CM APPL. 95/2025 CM APPL.

96/2025

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 18:07:08

SURENDER PAL GUPTA

.....Petitioner Through: Mr. N.P. Sahni, Mr. Abhinav Jain and

Ms. Vidhi Mangla, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL

CIRCLE 28 DELHI & ORS.

.....Respondents Through: Mr. Gaurav Gupta, SSC alongwith Mr.

Shivendra Singh and Mr. Yojit Pareek,

JSCs for IT Department.

(48) + W.P.(C) 40/2025 CM APPL. 100/2025 CM APPL. 101/2025 CM

APPL. 102/2025

SURENDER PAL GUPTA

.....Petitioner Through: Mr. N.P. Sahni, Mr. Abhinav Jain and

Ms. Vidhi Mangla, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL

CIRCLE 28 DELHI & ORS.

.....Respondents Through: Mr. Gaurav Gupta, SSC alongwith Mr.

Shivendra Singh and Mr. Yojit Pareek,

JSCs for IT Department.

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

07.01.2025

1.

The petitioner has filed the present petitions challenging the notices (hereafter the impugned notices) issued under Section 153C of the Income Tax Act, 1961 (hereafter the Act) seeking to reopen the assessments for the assessment years (AY) 2010-11 to AY 2013-14, on the ground that the same 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 18:07:08

are barred by limitation. The impugned notices were issued on 30.06.2023 and according to the petitioner, the period of six years or ten years for reopening the assessment, as the case may be, under Section 153C of the Act (assuming that the same is applicable) is required to be reckoned from the said date. Therefore, the assessments for AY 2010-11 to AY 2013-14, being beyond the said period, cannot be reopened. 2. The learned counsel for the Revenue submits that the period for which the assessments can be reopened has to be reckoned from the date when the Assessing Officer (AO) of the searched person had recorded the satisfaction note that the books of accounts, material or assets found during the search belonged to the petitioner or contained information pertaining to the petitioner. He, however, fairly states that even if 23.06.2022 is considered the relevant date, the period of 10 years for issuance of a notice under Section 153C of the Act read with Section 153A of the Act would have to be reckoned from the end of the assessment year relevant to the date of recording such satisfaction note. Thus, the period of 10 years is required to be computed from the end of the assessment year 2023-24 and in any event, assessment years from AY 2010-11 to AY 2013-14 would be beyond the said period. 3. The issue involved in the present case is concededly covered by an earlier decisions of this court in Principal Commissioner of Income Tax Central 1 v. Ojjus Medicare Pvt. Ltd. & Ors., Neutral Citation 2024:DHC:2629-DB; Commissioner of Income Tax- 7 v. RRJ Securities Ltd., Neutral Citation 2015:DHC:8989-DB; and Saksham Commodities Limited v. Income Tax Officer Ward 22(1), Delhi & Anr., Neutral Citation 2024:DHC:2836-DB. 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 18:07:08

4.

In view of the above, the present petitions are allowed and the impugned notices dated 30.06.2023 issued under Section 153C of the Act are set aside. Consequently, notices issued under Sections 143(2) and 142(1) of the Act are also set aside. 5. Pending applications are also disposed of.

VIBHU BAKHRU, ACJ

TUSHAR RAO GEDELA, J JANUARY 07, 2025 kct/ms

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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 18:07:08

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