DCIT Vs Aman Agarwal (ITAT Delhi)
Revenue Appeal Dismissed – Assessment u/s 143(3) Invalid When Case Falls in 153C Block Period
The Delhi ITAT dismissed the Revenue’s appeal and upheld the CIT(A)’s order holding that the assessment framed under Section 143(3) was without jurisdiction since the case squarely fell within the block period governed by Section 153C. The Tribunal noted that the satisfaction note in the assessee’s case, being a third party to the search, was recorded on 02.08.2022, which determined the relevant block period from AY 2017-18 to AY 2022-23. Consequently, the assessment for AY 2021-22 ought to have been completed only under Section 153C and not under the regular scrutiny provisions.
Relying on the Supreme Court decision in CIT v. Jasjit Singh and the Delhi High Court ruling in PCIT v. Ojjus Medicare Pvt. Ltd., the Tribunal reaffirmed that the date of recording satisfaction note is decisive for computing the block period in third-party search cases. It further noted that in the identical case of the assessee’s brother, the coordinate bench had already dismissed the Revenue’s appeal. Finding no infirmity in the CIT(A)’s order, the Tribunal held the Revenue’s grounds to be devoid of merit and dismissed the appeal in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
