SHREE AGGARSAIN NORTH EX WELAFARE SOCIETY vs. ASSISSTANT COMMISSIONER OF INCOME TAX CENTAL CIRCLE-28 DELHI & ANR.

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W.P.(C)/4168/2024HC DelhiDLHC01014533202430 September 2026Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE DR. JUSTICE ADITI CHOUDHARY3 pages
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What did the High Court hold?

The Delhi High Court held that the impugned notice dated February 15, 2024, issued under Section 153C of the Income-tax Act, 1961, for assessment year 2010-11, was time-barred. The Court reasoned that the satisfaction note was recorded on February 7, 2024, which falls within assessment year 2024-25. Calculating backward from AY 2024-25, and considering that the escaped income was more than Rs. 50,00,000/- (implying a 10-year limitation period), the notice issued on February 15, 2024, was beyond the prescribed limitation. The Court found this position to be clearly beyond the limitation period, aligning with a plain reading of Section 153A read with Section 153C of the Act and the precedent set in Ojjus Medicare Pvt. Ltd. (supra). The writ petition was allowed, and the notice was quashed.

What were the facts?

The petitioner, Shree Aggarsain North Ex Welfare Society, challenged a notice dated February 15, 2024, issued under Section 153C of the Income-tax Act, 1961. This notice was issued in furtherance of a satisfaction note dated February 7, 2024, recorded by the Assessing Officer for assessment year 2010-11. The petitioner argued that the notice was issued beyond the time period prescribed under Section 153A read with Section 153C of the Act, as prevailing for AY 2010-11. The respondents, represented by the Assistant Commissioner of Income Tax, Central Circle-28 Delhi, acknowledged that an SLP was filed against a relevant judgment but could not dispute the factual position regarding the limitation period.

What were the issues?

1. Whether the notice dated February 15, 2024, issued under Section 153C of the Income-tax Act, 1961, for assessment year 2010-11, is time-barred, considering the satisfaction note was recorded on February 7, 2024? Assessee's Contention: The petitioner argued that the impugned notice was issued beyond the time period prescribed under Section 153A read with Section 153C of the Act of 1961, as applicable for assessment year 2010-11. They relied on the judgment of this Court in Principal Commissioner of Income Tax-1 (Central-1) v. Ojjus Medicare Pvt. Ltd. ([2024] 465 ITR 101 (Delhi)). Revenue's Contention: The revenue could not dispute the factual position regarding the limitation period but submitted that an SLP against the cited judgment had been filed before the Hon'ble Supreme Court.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A

AI-generated summary — verify with the full judgment below

W.P.(C) 4168/2024 Page 1 of 3

$~23 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 30th September, 2026 # CNR No. DLHC010145332024 + W.P.(C) 4168/2024

SHREE AGGARSAIN NORTH EX WELAFARE SOCIETY .....Petitioner Through: Mr.Ruchesh Sinha, Mr.Dhanajay Bhardwaj, Ms.Diya Sharma, Ms.Upasna Vashistha, Advs.

versus

ASSISSTANT COMMISSIONER OF INCOME TAX CENTAL CIRCLE-28 DELHI & ANR.

.....Respondents Through: Mr. Abhishek Maratha, SSC with Mr. Apoorv Agarwal and Mr.Viplav Acharya, JSCs, Mr.Bhanukaran Singhh Mr.Alok Shukla, Advs.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE DR. JUSTICE ADITI CHOUDHARY

J U D G M E N T DINESH MEHTA, J. (ORAL)

1.

This application has been filed seeking condonation of 6 days’ delay in filing the short affidavit. CM APPL. 67947/2026 2. The delay is condoned. Affidavit is taken on record. 3. The application stands disposed of.

Signed By:PRATI MA Signing Date:01.10. 2026 19:41 Signature Not Verified

W.P.(C) 4168/2024 Page 2 of 3

1.

By way of present writ petition preferred under Article 226 of the Constitution of India, the petitioner has challenged notice dated 15.02.2024 under Section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act of 1961’) in furtherance of the satisfaction note dated 07.02.2024 recorded by the Assessing Officer (hereinafter referred to as ‘Assessing Officer’) for assessment year 2010-11. W.P.(C) 4168/2024 and CM APPL. 16987/2024 2. Learned Counsel for the petitioner at the outset argued that the impugned notice has been issued beyond the time period prescribed under Section 153A read with Section 153C of the Act of 1961 as prevailing at the relevant time (AY 2010-11). 3. He submitted that the issue involved in the present writ petition is squarely covered by judgment of this Court rendered in the case of Principal Commissioner of Income Tax-1 (Central-1) v. Ojjus Medicare Pvt. Ltd. reported in [2024] 465 ITR 101 (Delhi). 4. Mr. Abhishek Maratha, learned Senior Standing Counsel for the Department could not dispute the aforesaid position of facts involved. He, however, submitted that an SLP against the said judgment has been filed before Hon’ble the Supreme Court. 5. Heard learned counsel for the parties. 6. It does not need much discussion that as the satisfaction note was recorded on 07.02.2024, i.e. in the assessment year 2024-25, the notice issued on 15.02.2024 issued qua assessment year 2010-11 is clearly beyond the limitation period (which shall be 10 years as the escaped income is more than Rs.50,00,000/-), if calculated backward from assessment year 2024-25. Signed By:PRATI MA Signing Date:01.10. 2026 19:41 Signature Not Verified

W.P.(C) 4168/2024 Page 3 of 3

For ease of understanding, a tabular depiction is made hereunder: Year No. (counted backwards) Assessment Year 1 AY 2024-25 2 AY 2023-24 3 AY 2022-23 4 AY 2021-22 5 AY 2020-21 6 AY 2019-20 7 AY 2018-19 8 AY 2017-18 9 AY 2016-17 10th year AY 2015-16

7.

The impugned notice is, thus, time-barred, on a plain reading of Section 153A read with Section 153C of the Act of 1961 so also in light of Ojjus Medicare Pvt. Ltd. (supra)). 8. The writ petition is allowed, the notice dated 15.02.2024 is quashed. Pending application stands disposed of.

(DINESH MEHTA) JUDGE

ADITI CHOUDHARY (JUDGE) SEPTEMBER 30, 2026/Arya

Signed By:PRATI MA Signing Date:01.10. 2026 19:41 Signature Not Verified

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