DCIT Vs Ishwar Gupta (ITAT Delhi)
AY 2010-11 Beyond Maximum Ten-Year Section 153C Block; Time-Barred Section 153C Notice Invalidates All Consequential Assessment Proceedings; High Court’s Quashing of Section 153C Notice Binds Revenue Authorities; Section 153C Assessment Annulled After Jurisdictional Notice Lost Legal Foundation: Delhi ITAT
The Delhi ITAT has held that once the Delhi High Court had quashed the foundational notice dated 22.08.2022 issued u/s 153C as time-barred, the consequential assessment order could not independently survive. The Tribunal further found that AY 2010-11 fell outside even the maximum ten-year block computed with reference to the satisfaction recorded in FY 2022-23. The CIT(A)’s order annulling the assessment was upheld & the Revenue’s appeal was dismissed.
Parallel appeal & writ proceedings
The assessee, Shri Ishwar Gupta, was subjected to proceedings u/s 153C for AY 2010-11 through notice dated 22.08.2022.
Against the consequential assessment order, the assessee filed a statutory appeal before the CIT(A). Simultaneously, he challenged the very notice u/s 153C before the Delhi High Court by filing a writ petition.
During the appellate proceedings before the CIT(A), notices u/s 250 were issued. In response, the assessee informed the appellate authority about the pending writ petition & subsequent order of the Delhi High Court.
