Ramaa Advisors Private Limited Vs ACIT (Delhi High Court)
Summary: The Delhi High Court in Ramaa Advisors Private Limited vs ACIT considered a batch of writ petitions challenging reassessment proceedings initiated under Section 153C of the Income Tax Act, 1961. The central issue was the computation of the ten-year limitation period applicable under the provision, specifically determining from which date the ten-year block of assessment years (AYs) should be reckoned.
Background and Interim Order
The matter first came up before the court on 20 September 2024, when notices had been issued to the petitioners under Section 153C. The petitioners’ counsel, Mr. Jolly, produced a chart demonstrating the relevant timelines and argued that, applying the principles from Principal Commissioner of Income Tax (Central)-1 v. Ojjus Medicare Pvt. Ltd., the notices were issued beyond the permissible ten-year period.
The Division Bench noted that, prima facie, the action under Section 153C did not appear sustainable because the limitation period of ten assessment years must be computed from the date the books of accounts, documents, or seized assets are handed over by the Assessing Officer (AO) of the searched person to the AO of the non-searched person. Based on the date of handover, the permissible block period could have extended only up to Assessment Year (AY) 2016–17. Consequently, the court issued an interim order restraining the revenue authorities from proceeding further pursuant to the impugned notice dated 12 September 2024 and listed the matter for final hearing on 24 January 2025.
