DCIT Vs Excel Insurance Outsourcing Pvt. Ltd. (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) dismissed two appeals filed by the Revenue against the order of the Principal Commissioner of Income Tax (Appeals) pertaining to Assessment Years (AYs) 2010-11 and 2011-12. The dispute concerned the validity of assessments framed under Sections 153C read with 144 of the Income-tax Act, 1961, and the determination of the relevant block period applicable to a non-searched person.
The Assessing Officer initiated proceedings under Section 153C against the assessee following a search conducted on the Alankit Group on 18.10.2019. A satisfaction note under Section 153C was recorded by the Assessing Officer of the searched party on 24.06.2022, and the seized material was handed over to the Assessing Officer having jurisdiction over the assessee on the same date. Subsequently, the Assessing Officer of the assessee recorded satisfaction under Section 153C on 31.11.2022 and issued notice under Section 153C on 05.07.2023.
The assessee challenged the proceedings before the CIT(A), who allowed the appeal. The Revenue contested this decision before the ITAT, arguing against the CIT(A)’s finding that the block period under Sections 153C and 153A should be computed from the date on which the books of account, documents, or assets seized were received by the Assessing Officer of the non-searched person, rather than from the date of initiation of the search.
