ANUJ SHARMA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 28, DELHI & ORS.

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W.P.(C)/388/2024HC DelhiDLHC01058365202310 January 2025Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE3 pages
AI SummaryAllowed

What did the High Court hold?

The Delhi High Court held that the notice dated 20.02.2023 issued under Section 153C of the Income Tax Act, 1961, for AY 2013-14 was barred by limitation. The Court reasoned that the ten-year period for reopening assessments under Section 153C, as read with Section 153A, is to be computed from the end of the Assessment Year relevant to the Financial Year in which the Satisfaction Note, recorded by the AO of the searched person, is received by the AO of the non-searched person. In this case, the Satisfaction Note was received via a letter dated 20.06.2022, meaning the ten-year period should be computed from the end of AY 2022-23. Therefore, AY 2013-14 was outside this permissible period. The Court relied on its own decision in The Pr. Commissioner of Income Tax - Central-1 v. Ojjus Medicare Pvt. Ltd. The impugned notice was set aside. No other issues were expressly left undecided.

What were the facts?

The petitioner, Anuj Sharma, filed a writ petition challenging a notice dated 20.02.2023 issued under Section 153C of the Income Tax Act, 1961. This notice sought to reopen the assessment for Assessment Year (AY) 2013-14. The petitioner contended that AY 2013-14 was beyond the limitation period prescribed by Section 153C read with Section 153A of the Act. The Assessing Officer's (AO) Satisfaction Note, dated 10.02.2023, indicated that information was received from the DCIT, Central Circle-28, New Delhi, via a letter dated 20.06.2022. The petitioner provided a tabular statement showing the ten-year block period for reopening assessments under Section 153C, commencing from the end of the financial year in which the satisfaction note was received by the AO of the non-searched person.

What were the issues?

1. Whether the notice dated 20.02.2023 issued under Section 153C of the Income Tax Act, 1961, for Assessment Year (AY) 2013-14 is barred by limitation? The assessee (petitioner) argued that the ten-year period for reopening assessments under Section 153C, read with Section 153A, should be reckoned from the end of the financial year in which the Satisfaction Note was received by the AO of the non-searched person. Based on the Satisfaction Note dated 10.02.2023, which refers to a letter dated 20.06.2022, the ten-year period would commence from the end of FY 2022-23. Consequently, AY 2013-14 falls outside this period. The revenue (respondents) did not record any specific arguments in the judgment regarding the limitation period for the notice under Section 153C.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A

AI-generated summary — verify with the full judgment below

$~9 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 388/2024 and CM APPL. 1794/2024 ANUJ SHARMA .....Petitioner Through: Counsel (appearance not given). versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 28, DELHI & ORS. .....Respondents Through: Mr Abhishek Maratha, Senior Standing Counsel with Mr Apoorv and Mr Parth Samwal, Junior Standing Counsel and Ms Nupur Sharma, Mr Gaurav Singh, Mr Bhanukaran Singh Jodha, Ms Muskaan Goel and Mr Kamakshraj Singh, Advocates. CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 10.01.2025 1. The petitioner has filed the present petition, inter alia, impugning a notice dated 20.02.2023 issued under Section 153C of the Income Tax Act, 1961 (hereafter the Act) as being contrary to the provisions of Section 153A of the Act. In terms of the said notice, the Assessing Officer (AO) seeks to reopen the assessment for the assessment year (AY) 2013-14. The petitioner contends that the said AY is beyond the period of limitation as prescribed under Section 153C of the Act as read with Section 153A of the Act. 2. The petitioner has forwarded the Satisfaction Note as recorded by the AO for initiation of proceedings under Section 153C of the Act. The said 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 21:04:02

Satisfaction Note dated 10.02.2023, however, it records that “information in the form of satisfaction note has been received in this office in case of Shri Anuj Sharma (PAN: BEBPS2370N) vide letter F. No. DCIT(CC- 28)/Misc/2022-23/590 dated 20.06.2022 from DCIT, Central Circle-28, New Delhi”. 3. In view of the above, the period of ten years for which assessments could be opened under Section 153C of the Act are required to be reckoned from the end of the AY relevant to the financial year (FY) in which the Satisfaction Note recorded by the AO of the searched person is received by the AO of a non-searched person. Thus, the period of ten year in the present case is required to be computed from the end of the AY relevant to the FY 2022-23. 4. The learned counsel for the petitioner has handed over a tabular statement indicating the assessment years that could have been re-opened pursuant to the Satisfaction Note recorded by the AO of the searched person-Alankit Group of cases. The said tabular statement is set out below: “Computation of the ten-year block period as provided under section 153C read with section 153A of the Act (Satisfaction Note @ Page 129 of Annexure P-13 Colly) No. of Years AY 2023-24 1 AY 2022-23 2 AY 2021-22 3 AY 2020-21 4 AY 2019-20 5 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 21:04:02

AY 2018-19 6 AY 2017-18 7 AY 2016-17 8 AY 2015-16 9 AY 2014-15 10” 5. Concededly, the aforesaid issue is squarely covered by the decision of this court in The Pr. Commissioner of Income Tax - Central-1 v. Ojjus Medicare Pvt. Ltd : Neutral Citation : 2024:DHC:2629-DB. 6. In view of the above, the present petition is allowed and the impugned notice issued under Section 153C of the Act in respect of AY 2013-14 is set aside. VIBHU BAKHRU, ACJ TUSHAR RAO GEDELA, J JANUARY 10, 2025 RK Click here to check corrigendum, if any 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 21:04:02

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