DCIT Vs Priyanka Gupta (ITAT Delhi)
ITAT Delhi dismissed the Revenue’s appeal for AY 2021-22 in Priyanka Gupta (legal heir of late Smt. Neeru Gupta), upholding the relief granted by CIT(A) on the correct reckoning of limitation for a non-searched person.
The Tribunal affirmed that where the assessee is not the searched person, the relevant date for computing the block/limitation is the date on which books of account or documents are received by the AO having jurisdiction over the other person, not the date of search. The CIT(A) had rightly followed binding Delhi HC precedents in PCIT v. Ojjus Medicare (P) Ltd. and PCIT v. Jasjit Singh, and the Revenue failed to cite any contrary authority.
Finding no error in following binding jurisdictional law, the Bench held that the Revenue’s grounds lacked merit and dismissed the appeal.
Result:
– Revenue appeal dismissed
– CIT(A)’s relief sustained
– Law reiterated: For non-searched persons, limitation runs from receipt of books, not from the search date.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the Revenue against the order dated 29.01.2025 of the Ld. CIT(A)-30, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN No : ITBA/APL/M/250/2024-25/1072691622(1)arising out of the order dated 30.12.2022 u/s 144 r.w.s143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the DCIT, CC-31 for AY: 2021-22.
2. On hearing both sides we find that the department has come up in appeal challenging the impugned order of ld. First Appellate Authority where assesse got relief on the basis of judgments of Hon’ble Delhi High Court in the case of PCIT vs. Ojjus Medicare Pvt. Ltd. in ITA No. 52/2024 dated 03.04.2024and in the case of PCIT Vs. Shri Jasjit Singh (2024) 336 CTR 634 (Delhi). The issue culminated in favour of the assessee as ld. First Appellate Authority has held that in regard to present Assessment Year 2020-21 on the basis of search assessment in the case of assessee being of none search person, therefore, the date of search to reckon block period of assessments has to be calculated from the date of receipt of the books.
3. We are of the considered view that there is no law cited to the contrary in the ground as raised the challenge to allege that ld. CIT(A) erred infollowing the binding decision in case of Ojjus (supra) or Jasjit Singh (supra). Grounds raised have no substance. The appeal of revenue is dismissed.
Order pronounced in the open court on 04.02.2026
