DCIT Vs Maharaja Agarsain Builders Private Limited (ITAT Delhi)
Section 153C Clock Starts With Receipt of Seized Material: Pending SLP Cannot Save Assessments
Background: Search in Alankit Group Led to Section 153C Proceedings
The dispute arose from a search conducted on 18 October 2019 in the cases of the Alankit Group and its associates.
Following that search, proceedings under Section 153C were initiated against Maharaja Agarsain Builders Private Limited on 16 September 2022. Assessments were subsequently completed under Section 153C read with Section 144 for AYs 2011-12 and 2012-13.
The assessee challenged those assessments before the CIT(A).
By separate orders dated 15 December 2025, the CIT(A) quashed the assessments after examining the applicable assessment-year window in light of the Delhi High Court’s decision in PCIT v. Ojjus Medicare (P.) Ltd.
The Revenue appealed against both orders before the Tribunal.
Several Additions Were Challenged, but Jurisdiction Came First
For the lead year, AY 2011-12, the Revenue challenged relief concerning additions of ₹42.50 lakh under Section 69A, ₹1,27,500 under Section 69C, ₹19,26,486 under Section 41(1), ₹16,30,153 under Section 37(1) and ₹1,85,94,693 under Section 68.
However, the decisive controversy was whether the assessment year itself could validly be covered by the Section 153C proceedings.
