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
This appeal is preferred by the Revenue against the order dated 25.10.2024 of the Ld. CIT(A), New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN No : ITBA/APL/M/250/2024-25/1069944893(1)arising out of the order dated 30.12.2022 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the DCIT, Central Circle-31for AY: 2021-22.
2. On hearing both the sides we find that the assesse succeeded before the Ld. First Appellate Authority on the basis that the year under consideration was found to be falling in the block period of 6 Assessment Years for which assessment should have been concluded u/s 153C of the Act and not u/s 143(3) of the Act and ld. CIT(A) has taken into consideration the judicial decision of Hon’ble Supreme Court in the case of CIT vs. Jasjit Singh (2023) 458 ITR 437 (SC) and Hon’ble Delhi High Court in the case of Ojjus Medicare Pvt. Ltd. (2024) 161 taxman.com 160 (Delhi).
4. Though, the ld. DR has vehemently defended the issue, however, the legal position that date of recording satisfaction note in the case of third party is considered as date of search in the case of the third party and which forms basis of ascertaining relevant block of search assessment years could not be disputed by any law to the contrary. In the case of present assessee the date of recording satisfaction, as third party, was 02.08.2022 meaning thereby thecurrent AY: 2023-24 for which assessment has been made u/s 143(3) falls in block of 6 years starting from 2017-18 to AY: 2022-23. In fact, in the case of Aditya Agarwal in ITA No. 180/Del/2025 which is the case of the brother of the assesse, the Coordinate Bench by order dated 13.05.2023 dismissed the appeal of revenue.
5. Thus, grounds raised by the revenue in the present appeal too have no substance and appeal of the revenue is dismissed.
Order pronounced in the open court on 14.01.2026
