Assistant Commissioner of Income Tax, Central Circle-25, Delhi vs Pallavi Gupta

Parties Involved

Facts Summary

The assessee had filed her original return for Assessment Year (A.Y.) 2014-15 on 26.03.2015 declaring income of Rs. 5,87,850/-. A search under section 132 of the Income Tax Act, 1961 was conducted in M/s Alankit Group of cases on 18.10.2019, during which certain incriminating documents pertaining to the assessee were found and seized. The seized material was handed over to the Assessing Officer (AO) of the assessee on 24.06.2022. The AO recorded satisfaction under section 153C on 30.09.2022, which was approved by the Principal Commissioner of Income Tax (Appeals) on 21.10.2022. A notice under section 153C was issued to the assessee on 10.11.2022. The AO issued a show-cause notice and finalized the assessment after making an addition of Rs. 5,06,877/- under section 69 and Rs. 15,206/- under section 69C of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals), who annulled the notice and assessment order, finding that the amount involved did not satisfy the condition for issuing a notice under section 153C for an assessment year beyond 6 years but before 10 years.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in relying on the judgment of the Delhi High Court in the case of PCIT, Central-1, Delhi vs Ojijus Medicare Pvt. Ltd.
• 2. Whether the block periods for assessment under section 153C of the Income-tax Act, 1961, have to be calculated from the date of receipt of the books of accounts, documents or assets seized, by the jurisdictional AO of the non-searched person or from the date of issue of Notice u/s 153C of the Act and not from the date of initiation of search?
• 3. Whether the Commissioner of Income Tax (Appeals) was justified in holding that block period for assessment u/ 153C of the Income-tax Act, 1961, have to be calculated from the date of receipt of the books of accounts, documents or assets seized, by the jurisdictional AO of the non-searched person or from the date of issue of Notice issued u/s 153C of the Act and not from the date of initiation of search by relying on first Proviso to Section 153C?
• 4. Whether the Commissioner of Income Tax (Appeals) was justified in holding that block periods for assessment u/ 153C of the Income-tax Act, 1961, have to be calculated from the date of receipt of the books of accounts, documents or assets seized or date of Notice issued u/s 153C of the Act, by the jurisdictional AO of the non-searched person?
• 5. Whether the Commissioner of Income Tax (Appeals) was justified in relying on the judgment of the Hon'ble Supreme Court in the case of CIT vs. Jasjit Singh and of the Hon'ble High Court in the case of CIT vs. RRJ Securities Ltd.
• 6. Whether the order of the Commissioner of Income Tax (Appeals) is perverse, erroneous and is not tenable on facts and in law.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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