Asshok Kumar Vs DCIT (ITAT Delhi)
153C Time-Barred: ITAT Quashes Assessments Outside Block Period Based on Satisfaction Note Date
Delhi ITAT, Bench ‘C’, in Ashok Kumar vs. DCIT (ITA Nos. 3192–3194/Del/2025, AYs 2010-11 to 2012-13) & Lekhraj vs. DCIT (ITA No. 3180/Del/2025, AY 2012-13), vide common order dated 22.12.2025, quashed the impugned assessments framed u/s 153C r.w.s. 143(3) as without jurisdiction and barred by limitation.
The cases arose out of a search in Navin Mahipal Group on 16.10.2019, where certain documents allegedly relating to the Assessees were found. Proceedings u/s 153C were initiated based on satisfaction notes recorded in FY 2021-22 (AY 2022-23). The AO framed assessments for earlier years, including AYs 2010-11, 2011-12 & 2012-13, making substantial additions. The CIT(A) dismissed the appeals ex-parte.
Before the Tribunal, the Assessees raised pure legal grounds on jurisdiction, contending that once the satisfaction note was recorded in FY 2021-22, the permissible block of ten assessment years could only be AYs 2013-14 to 2022-23, and therefore, the impugned years clearly fell outside the statutory block period.
Accepting the contention, the Tribunal held that for an “other person”, the relevant date for computing the 6/10-year block under s.153C is the date of recording satisfaction / handing over of seized material, and not the original search date. Relying on CIT vs. Jasjit Singh (SC) and PCIT vs. Ojjus Medicare (Delhi HC), ITAT ruled that assessments for AYs 2010-11 to 2012-13 were beyond jurisdiction and liable to be quashed.
Since the assessments were struck down on jurisdictional grounds, all additions were annulled, and other issues were left open. Consequently, all appeals of both Assessees were allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The assessees, Ashok Kumar and Lekhraj, have filed appeals against the order of the Learned Commissioner of Income-tax (Appeals)-31, New Delhi [“Ld. CIT(A)”, for short] dated 29.03.2025 and 12.03.2025 for the Assessment Years 2010-11 to 2012-13 and 2012-13 respectively.
