DCIT Vs Vikas Associates Pvt. Ltd. (ITAT Delhi)
Revenue filed appeal against order of CIT(A) deleting additions of Rs.35,00,000/- u/s 69A & Rs.1,05,000/- u/s 69C, arising from assessment framed u/s 153C.
Assessee challenged the validity of proceedings, contending that AY 2012-13 fell beyond the block of 10 years prescribed u/s 153C r.w.s. 153A. Reliance was placed on Supreme Court ruling in CIT Vs Jasjit Singh (2023 SCC OnLine SC 1265) & Delhi High Court judgment in PCIT Vs Ojjus Medicare Pvt. Ltd. (2024 SCC OnLine Del 2439). CIT(A) accepted the plea & quashed assessment, holding that initiation beyond 10 years was barred by limitation.
On Revenue’s appeal, Tribunal observed that the jurisdictional Delhi High Court in Ojjus Medicare Pvt. Ltd. had already interpreted the amended law, holding that assessment cannot go beyond 10 AYs preceding the year of search/requisition. Since AY 2012-13 was outside this block, assessment u/s 153C had no legal foundation.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the Revenue against the order of the Ld. CIT(Appeals)-25, Delhi dated 23.12.2024 for the AY 2012-13. The Revenue has raised the following grounds:
1. “Whether the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs.35,00,000/- made u/s 69A of the Income Tax Act.
2. Whether the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs.1,05,000/- made on account of unaccounted commission u/s 69C @3% of Rs.35,00,000/-.
3. Whether the computation of the block period under sections 153C and 153A of the Income Tax Act, as interpreted by the Hon’ble High Court in the case of Ojjus Medicare Pvt. Ltd., aligns with the legislative intent and procedural flexibility outlined in CBDT Circular No. 2/2018 dated 15 February 2018.
4. That the order of the CIT (A) is perverse, erroneous and is not tenable on facts and in law.
5. That the grounds of appeal are without prejudice to each other.”
2. Ld. Counsel for the assessee, at the outset, submits that the proceedings initiated u/s 153C for the assessment year under consideration i.e. AY 2012-13 is barred by limitation since in the instant assessment year falls beyond the period of ten years in view of the decision of Hon’ble Supreme Court in the case of CIT vs. Jasjit Singh (2023) SCC Online SC 1265 and the Hon’ble jurisdictional High Court in the case of PCIT vs. Ojjus Medicare Pvt. Ltd. (2024) SCC Online Del 2439. Ld. Counsel for the assessee submitted that the Ld. CIT(A) following the decision of the jurisdictional High Court held that the assessment year under consideration i.e. 2012-13 would fall beyond the ambit of 10 assessment years provided u/s 153C r.w.s. 153A of the Act and the impugned assessment order passed u/s 153C is quashed.
