DCIT Vs Misha Gupta (ITAT Delhi)
For Section 153C, Six-Year Block Runs from Receipt of Seized Material by Other Person’s AO: Delhi ITAT Follows Ojjus Medicare
The date of search on one person does not, under the binding Delhi High Court ruling in Ojjus Medicare, automatically fix the six-year assessment block for another person proceeded against under Section 153C. Applying that ruling, the Delhi ITAT upheld the cancellation of a Section 153C assessment for AY 2014–15 in DCIT v. Misha Gupta, ITA No. 1175/Del/2026, pronounced on 29 September 2026.
The order is particularly notable because the Tribunal discussed a different interpretation of the Finance Act, 2017 amendment, but expressly followed the jurisdictional High Court as a matter of judicial discipline.
Search in 2019, Satisfaction in 2022
The Department conducted a search on the Alankit Group on 18 October 2019. According to the assessment order, material found during the search included information concerning the assessee’s transactions. The AO of the searched person recorded a satisfaction note on 1 June 2022; the assessee’s jurisdictional AO recorded a separate note on 23 June 2022 and issued a notice under Section 153C on 29 June 2022.
For AY 2014–15, the AO made additions of ₹3,91,905 under Section 68 and ₹11,757 under Section 69C, taking the assessed income to ₹9,03,610 against returned income of ₹4,99,950. The assessee challenged both the jurisdiction to make the assessment and the additions on merits.
