DCIT Vs Indo Greenfuel Pvt. Ltd. (ITAT Delhi)
10-Year Sword Cannot Swing Forever: Delhi ITAT Upholds Quashing of Time-Barred Section 153C Assessment
The Delhi ITAT in Indo Greenfuel Pvt. Ltd. upheld the quashing of a Section 153C assessment for AY 2010-11, holding that the notice issued on 28.09.2022 was beyond the permissible 10 assessment year limitation period prescribed under Sections 153C/153A.
The CIT(A) had relied upon the Delhi High Court ruling in Pr. CIT vs. Ojjus Medicare Pvt. Ltd. and observed that, after the amendment, the block of 10 years had to be counted backward from AY 2023-24, which would extend only up to AY 2014-15. Therefore, reopening AY 2010-11 under Section 153C was clearly outside jurisdiction.
The Tribunal noted that once the jurisdiction itself failed, the assessment order “had no legs to stand” and was rightly annulled. Since the very assumption of jurisdiction was invalid, all other issues on merits became academic. The Revenue’s appeal was accordingly dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 27.09.2025 of the Ld. Principal Commissioner of Income Tax (Appeals)-25 (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN No : ITBA/APL/M/250/2025-26/1081257996(1)arising out of the assessment order dated 30.03.2024 u/s 153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by ACIT, Circle-32, New Delhi for AY: 2010-11.
