ACIT Vs Helios Infrastructure & Projects Limited (ITAT Delhi)
148 Notice Beyond 10-Year Block Void- Satisfaction Note Date Replaces Search Date for Limitation- Time-Barred Reopening Invalid – ITAT Delhi Deletes ₹2.25 Cr Assessment
The case arose from search in Filatex Group on 01.09.2021, pursuant to which AO issued notice u/s 148 on 31.03.2023 for AY 2012-13. Assessment was completed u/s 147 r.w.s. 143(3) on 26.03.2024 determining income of ₹2.25 Cr against returned loss of ₹36,838.
Before CIT(A), Assessee contended that notice u/s 148 was time-barred since AY 2012-13 fell beyond the permissible 10-year block period as per sec.149(1) r.w.s. 153A/153C. It was also argued that sanction u/s 151 was mechanical.
CIT(A) accepted Assessee’s plea, relying on Delhi HC rulings in Karina Airlines International Ltd. (ITA 690/2023), Flow more Ltd. [2024] 164 taxmann.com 738, Dinesh Jindal [2024] 164 taxmann.com 746, & Ojju Medicare Pvt. Ltd. which followed SC in Jasjit Singh. It was held that date of satisfaction note recording (24.03.2024) replaces “date of search” for computing 10-year block. Therefore, notice u/s 148 issued on 31.03.2023 was beyond limitation; AO lacked jurisdiction. Entire assessment was quashed. Tribunal noted that Revenue could not controvert findings of CIT(A). Concurring with CIT(A), Tribunal dismissed Revenue’s appeal. Consequently, Assessee’s cross objection was rendered infructuous
