ACIT Vs RV Café Pvt. Ltd. (ITAT Delhi)
ITAT Delhi Dismisses Revenue Appeal – Assessment Held Invalid as Framed u/s 143(3) Instead of Mandatory Sec 153C in Search Case
In ACIT CC-30 vs RV Café Pvt. Ltd., the ITAT Delhi upheld the order of CIT(A) and dismissed the Revenue’s appeal holding that the assessment for AY 2017-18 was wrongly framed u/s 143(3) though it formed part of the block period arising from search proceedings. The Tribunal noted that the assessee belonged to the searched Sukhija Group and the correct block period for a non-searched person must be computed from the date of recording satisfaction note, not from the date of search.
Relying on Delhi High Court decisions including Ojjus Medicare Pvt. Ltd., CIT(A) held that the impugned year fell within the six-year block period and therefore assessment ought to have been made u/s 153C. Since the AO completed assessment under the wrong provision, the appellate relief granted by CIT(A) was justified. ITAT agreed that the legal defect vitiated the assessment and therefore the Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the revenue against the order of the Ld. CIT (A), u/s 250 of the Income Tax Act (for short, the “Act”), order dated 30.06.2025 in the Appeal No. CIT(A), Delhi-30/10565/2019-20.
