DCIT Vs Betsy Growth Finance Ltd. (ITAT Delhi)
The Delhi ITAT dismissed the Revenue’s appeals relating to assessment years 2010-11 and 2013-14, holding that the assessments framed under Section 153C of the Income-tax Act were barred by limitation. The Tribunal held that the ten-year block period under Section 153C must be reckoned from the date of recording of the satisfaction note or the date of issuance of notice under Section 153C, and not from the date of search. In the present case, the satisfaction note was recorded on 12 May 2022 and the notice under Section 153C was issued on 30 June 2022. Accordingly, the relevant year for computing the ten-year period was FY 2022-23 (AY 2023-24), restricting the permissible block period up to AY 2014-15. Since AYs 2010-11 and 2013-14 fell outside the permissible ten-year period, the assessment orders passed under Section 153C were held to be invalid and liable to be quashed. The Tribunal followed the decisions of the SC in CIT v. Jasjit Singh and the Delhi HC in PCIT v. Ojjus Medicare (P.) Ltd., and upheld the CIT(A)’s order. Consequently, both Revenue appeals were dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. These are Revenues’ appeals filed against the respective orders of the Ld. Commissioner of Income Tax (Appeals)-25, New Delhi, involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Since in both the revenues’ appeals, the identical issues are involved, hence, the same were heard together and disposed of by this common order for the sake of convenience, by dealing with ITA No. 1364/Del/2026 (AY 2010-11), being the lead case.
