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Facts
The assessee filed an appeal against the assessment order for AY 2011-12. The assessment was framed under Section 153A of the Income Tax Act, 1961. A search and seizure operation was conducted on the assessee on 06.07.2017.
Held
The Tribunal held that the assessment under Section 153A for AY 2011-12 was barred by limitation because the assessment year did not fall within the six assessment years preceding the year in which the search was conducted (AY 2018-19).
Key Issues
Whether the assessment framed under Section 153A for AY 2011-12 is barred by limitation as it falls outside the six preceding assessment years from the search year.
Sections Cited
153A, 132, 127(1)
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Income Tax Appellate Tribunal, DELHI BENCH “G’’ : NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN
ORDER PER MAHAVIR SINGH, VP: This appeal has been filed by the Assessee against the order dated 2.9.2025 passed by the Ld. Commissioner of Income Tax (Appeals-29) (hereinafter referred as CIT(A)), New Delhi for the assessment year 2011-12 in appeal no. CIT(A), Delhi-29. Assessment was framed by the DCIT, CC-27, New Delhi vide order dated 31.12.2019 u/s. 153A of the Income Tax Act, 1961 (hereinafter referred as the Act).
At the outset, Ld. Counsel for the assessee, Shri C.S. Agarwal, Senior Advocate argued that the assessment framed by the DCIT-CC-27, New Delhi for the assessment year 2011-12 u/s. 153A of the Act is barred by limitation, hence, without jurisdiction. Ld. Counsel for the Assessee stated that search and seizure operation was conducted on LARA Group of cases u/s. 132 of the Act on 16.5.2017 and consequently, search warrant u/s. 132 of the Act was issued in the name of the assessee Smt. Gursharan Goyal for her locker no. MSJB 028 with Federal Bank, Westend Colony Delhi dated 06.07.2017. According to Ld. Counsel for the assessee, assessee’s case was covered u/s. 153A of the Act and accordingly, jurisdiction over the assessee was transferred from Central Circle-15, Delhi to Central Circle-27, Delhi for framing of assessment by the PCIT, (Central-2), New Delhi vide order u/s. 127(1) dated 28.09.2019 with immediate effect. Consequently, the notice u/s. 153A of the Act was issued on 19.12.2019 requiring the assessee to furnish the income for the year under consideration being one of the six assessment years preceding the assessment year in which the search was conducted. Ld. Counsel for the assessee further stated that search on the assessee was conducted on 6.7.2017 and accordingly, assessee’s case for AY 2011-12 does not fall within six assessment years preceding to the assessment year in which the search was conducted. He contended that search assessment is AY 2018-19 and six years preceding this assessment year is AYrs. 2012-13, 2013-14, 2014-15, 2015- 16, 2016-17 & 2017-18. He stated that assessment order for AY 2011-12 is out of six assessment years, hence, no assessment u/s. 153A cam be framed in the case of the assessee for this assessment year.
When these facts were confronted to the Ld. CIT(DR), he could not controvert the above fact position.
After hearing the rival contentions and perusing the relevant records, we find force in the contention of the Ld. Sr. Advocate, Shri C.S. Agarwal, that the assessment framed by the DCIT-CC-27, New Delhi for the assessment year 2011-12 u/s. 153A of the Act is barred by limitation and thus without jurisdiction, due to the fact that the search and seizure operation was conducted on LARA Group of cases u/s. 132 of the Act on 16.5.2017 and consequently, search warrant u/s. 132 of the Act was issued in the name of the assessee Smt. Gursharan Goyal for her locker no. MSJB 028 with Federal Bank, Westend Colony Delhi dated 06.07.2017. The assessee’s case was covered u/s. 153A of the Act and accordingly, jurisdiction over the assessee was transferred from Central Circle-15, Delhi to Central Circle-27, Delhi for framing of assessment by the PCIT, (Central-2), New Delhi vide order u/s. 127(1) dated 28.09.2019 with immediate effect. Consequently, the notice u/s. 153A of the Act was issued on 19.12.2019 requiring the assessee to furnish the income for the year under consideration being one of the six assessment years preceding the assessment year in which the search was conducted. The search on the assessee was conducted on 6.7.2017 and accordingly, assessee’s case for AY 2011-12 does not fall within six assessment years preceding to the assessment year in which the search was conducted. It is an admitted fact that search assessment is AY 2018-19 and six years preceding this assessment year is AYrs. 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2017-18, therefore, the assessment order for AY 2011-12 is out of six assessment years, thus barred by limitation, hence, no assessment u/s. 153A is liable to be framed in the case of the assessee for this assessment year i.e. AY 2011-12. Accordingly, the assessment framed is hereby quashed. Since, we have already quashed the assessment, the other grounds have become academic and hence, need not be adjudicated.
In the result, the assessee’s appeal is allowed in the above terms. Order pronounced in the Open Court on 02.03.2026.
Sd/- Sd/- (S. RIFAUR RAHMAN) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT