DCIT v. N K Malhotra(HUF)

Parties Involved

Facts Summary

The case involves an income tax assessment for the assessment year 2014-15. The assessee, N. K. Malhotra (HUF), filed a return of income on 08.03.2015 declaring income of Rs. 3,28,070/-. A search and seizure operation was conducted by the Revenue on 18.10.2019 on the Alankit Group, including Sh. Alok K Agarwal and his associates. Incriminating documents were found and seized, indicating that Sh. Alok Agarwal facilitated acquisition of shares of shell entities for his own benefit and that of his associates. The Assessing Officer (AO) issued a notice under Section 153C on 16.11.2022 to the assessee. The assessee filed a return on 02.12.2022, declaring income of Rs. 3,28,070/-. The AO made additions to the assessee's income totaling Rs. 4,05,888/- under Sections 69A and 69C of the Income-tax Act, 1961, resulting in an assessed total income of Rs. 7,33,958/-. The assessee appealed to the Commissioner of Income Tax (Appeals) who held that the assessment year 2014-15 fell outside the stipulated period of six assessment years preceding the relevant assessment year in which the search was conducted. The Revenue appealed to the Income Tax Appellate Tribunal, which dismissed the appeal.…

Legal Issues

• 1. Whether the Ld. CIT(A) was justified in relying on the judgment of the Hon'ble Delhi High Court in the case of PCIT, Central-1. Delhi vs Ojjus Medicare Pvt. Ltd. (ITA No. 52 of 2024) when the Revenue had filed a SLP against this decision.
• 2. Whether the block periods for assessment under Section 153C should be calculated from the date of receipt of books of accounts, documents, or assets seized by the jurisdictional AO of the non-searched person or from the date of initiation of the search.
• 3. Whether the Ld. CIT(A) was justified in holding that the block periods for assessment under Section 153C should be calculated from the date of receipt of books of accounts, documents, or assets seized by the jurisdictional AO of the non-searched person or from the date of issue of Notice under Section 153C.
• 4. Whether the Ld. CIT(A) was justified in holding that the block periods for assessment under Section 153C should be calculated from the date of receipt of books of accounts, documents, or assets seized by the jurisdictional AO of the non-searched person or from the date of initiation of the search, considering the amendment introduced by the Finance Act, 2017.
• 5. Whether the Ld. CIT(A) was justified in holding that the block periods for assessment under Section 153C should be calculated from the date of receipt of books of accounts, documents, or assets seized by the jurisdictional AO of the non-searched person or from the date of initiation of the search, considering the position of law clarified by the Finance Act, 2017.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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