DCIT Vs Ankit Agarwal (ITAT Delhi)
Beyond 10-Year Block- Search Can’t Stretch Beyond Time Limit — ITAT Quashes 153A Notice for AY 2010–11 as Time-Barred
A search u/s 132 was conducted on Alankit Group on 18.10.2019, which also covered Assessee. Based on this, AO issued a notice u/s 153A on 02.09.2021 for AY 2010–11 & framed an assessment order. CIT(A), however, held that AY 2010–11 was beyond the 10-year block period permitted u/s 153A & accordingly quashed the assessment.
Revenue argued that Explanation 1 to Section 153A covered AY 2010–11 within the 10-year window. Assessee, defending the order, contended that the issue was already settled by the Delhi High Court in Ojjus Medicare Pvt. Ltd. & Kanhaiya Lal Bothra v. Union of India, both arising from the same Alankit Group search.
Tribunal noted that, per Ojjus Medicare Pvt. Ltd. (2024 DHC 2629-DB), the 10-year block must be reckoned from the end of the AY relevant to the financial year in which the search was conducted. Since the search occurred on 18.10.2019 (FY 2019–20), the “relevant AY” was 2020–21, & the 10-year block covered AYs 2011–12 to 2020–21. As AY 2010–11 fell outside this period, the AO lacked jurisdiction to issue the notice. Relying on these binding precedents, ITAT held that the notice & the consequential assessment were barred by limitation & void ab initio.
