Landcraft Developers Private Limited Vs ACIT (Delhi High Court)
Delhi High Court has quashed a notice issued under Section 153C of the Income Tax Act, 1961, for Assessment Year (AY) 2015-16, ruling that the assessment proceedings initiated against Landcraft Developers Private Limited were barred by limitation. The court emphasized that the period of limitation for passing an assessment order under Section 153C commences from the date on which the Assessing Officer (AO) of the ‘other person’ receives the seized documents.
The petitioner, Landcraft Developers Private Limited, challenged the notice dated December 19, 2023, arguing that the time stipulated for passing an assessment order had elapsed, rendering any subsequent order invalid. The core of the petitioner’s argument rested on Section 153B of the Act, which mandates that an assessment order pursuant to a notice under Section 153C must be passed within twelve months from the end of the financial year in which the notice was issued. The petitioner contended that this period had passed, and therefore, the Revenue should be restrained from proceeding further.
The case was listed for hearing on March 26, 2025, and the Revenue was granted two weeks to file a reply, but no such reply was furnished. Further time was sought by the Revenue’s counsel on May 1, 2025, and granted, but a counter-affidavit was still not filed by the time of the subsequent hearing.
