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Facts
The Revenue appealed an order by the Ld. CIT(A) which allowed the Assessee's appeal. The assessment order under Section 153A was passed for Assessment Year 2010-11, making additions to the Assessee's income.
Held
The Tribunal held that the assessment order for Assessment Year 2010-11 was beyond the 10-year period as per Explanation 1 to Section 153A(1) of the Act. Relying on the jurisdictional High Court's judgment in Ojjus Medicare Pvt. Ltd., the Tribunal found no reason to interfere with the Ld. CIT(A)'s order.
Key Issues
Whether the assessment order passed u/s 153A for Assessment Year 2010-11 is beyond the prescribed 10-year period.
Sections Cited
153A, 153A(1)
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Income Tax Appellate Tribunal, DELHI
ORDER
PER YOGESH KUMAR, U.S. JM:
The captioned appeal is filed by the Revenue against the order of Ld. Commissioner of Income Tax (Appeals)-25 (‘Ld. CIT (A)’ for short), New Delhi dated 28/02/2025 for the Assessment Year 2010-11.
Brief facts of the case are that, an assessment order came to be passed on 24/05/2022 u/s 153A of the Income Tax Act, 1961 ('Act' for short) by making certain additions. The Assessee preferred an Appeal before the Ld. CIT(A) by challenging the assessment order dated 24/05/2022. The Ld. CIT(A) vide order dated 28/02/2025, allowed the appeal of the Assessee on the ground that the assessment so framed against the Assessee pertaining to Assessment Year 2010-11 is beyond the extended 10 year period.
Aggrieved by the order of the Ld. CIT(A) dated 28/02/2025, the Department preferred the present Appeal. The Ld. Department's Representative vehemently submitted that the Department has preferred an appeal before the Hon'ble Supreme Court against the Judgment of Hon'ble High Court of Delhi in the case of Ojjus Medicare Pvt. Ltd. and apart from the same, the additions have been made to recover the actual tax due from the Assessee on its merits, therefore, sought for interference by the Tribunal and prayed for allowing the present Appeal.
Per contra, the Ld. Assessee's Representative submitted that the assessment has been framed for the year under consideration which falls beyond the period of 10 years, therefore, the Judgment of Hon'ble High Court in the case of Ojjus Medicare Pvt. Ltd. being binding precedent, the Ld. CIT(A) has rightly allowed the Appeal of the Assessee. Thus, sought for dismissal of appeal filed by the Revenue.
We have heard both the parties and perused the material available on record. The Ld. CIT(A) at Para 10.9 and 10.10 of the order impugned, calculated the period of 10 years in framing the assessment order for the year under consideration and found that the year under consideration i.e. Assessment Year 2010-11 falls beyond the purview of 10 years in terms of explanation 1 to Section 153A(1) of the Act. Further, relying on the Judgment of the Jurisdictional High Court in the case of Ojjus Medicare Pvt. Ltd. (supra), set aside the assessment order. The Judgment of the Jurisdictional High Court in the case of Ojjus Medicare Pvt. Ltd. (supra) is having binding precedent, which has been followed by the Ld. CIT(A) in setting aside the assessment order in question. In the absence of any contrary judicial precedent brought to the notice of the Bench and in the absence of any contrary factual aspects on record, we find no reason to interfere with the findings and the conclusion of the Ld. CIT(A).
Thus, we find no merits in the Ground of Appeal of the Revenue, accordingly, grounds of Appeal of the Revenue are dismissed.
In the result, Appeal of the Revenue is dismissed.
Order pronounced in the open court on 05th December, 2025