ACIT, DELHI V. SMT. SUDESH GAHLOT, DELHI

ITA 5947/DEL/2025

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax against Smt. Sudesh Gahlot concerning an assessment order for the year 2011-12. The primary legal contention was whether the assessment order was valid given the time limits prescribed under Section 153C of the Income Tax Act. The CIT(A) had set aside the original assessment order, citing that it was beyond the statutory time limit for reassessment, a decision which the Tribunal upheld based on the Delhi High Court's ruling in a similar case (PCIT Vs. Ojjus Medicare (P) Ltd.). Both parties presented their arguments, with the Assessee's counsel emphasizing the jurisdictional bar due to the elapsed time, and the Departmental Representative arguing for the validity of the assessment under the Income Tax Act.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835801 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 24-09-2025
• Other Referred Cases: PCIT Vs. Ojjus Medicare (P) Ltd., (2024) 465 ITR 101 (Del)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHESH KUMAR
• Assessee Lawyers: RAKESH GUPTA; SAKSHAM
• Keywords: Set aside

Judgement Text

" 1 ITA No. 5947 /D/2025 & C.O. No. 235/D/2025 ACI Vs. Smt. Sudesh Gahlot IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘G’ NEW DELHI) BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 5947/DEL/2025 (A.Y. 2011-12) Assistant Commissioner of Income Tax, Central Circle -04, Room No. 332, 3rd Floor, ARA Centre, Jhandewalan Extension, New Delhi V s Smt. Sudesh Gahlot B-5/4403, Block B-5, & 6 VsantKunj, New Delhi PAN: AAUPG7636A Appellant Respondent C. O No. 235/Del/2025 in ITA No. 5947/DEL/2025 Smt. SudeshGahlot B-5/4403, Block B-5, & 6 VsantKunj, New Delhi PAN: AAUPG7636A V s Assistant Commissioner of Income Tax, Central Circle -04, room No. 332, 3rd Floor, ARA Centre, Jhandewalan Extension, New Delhi Appellant Respondent Assessee by Sh. Rakesh Gupta, Adv and Sh. Saksham Agarwal, CA Revenue by Sh. Mahesh Kumar, CIT DR Date of Hearing 03/02/2026 Date of Pronouncement 11/02/2026 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal and Cross Objection are filed by the Revenue and the Assessee respectively challenging the order of Ld. Commissioner of Income Tax (Appeals) (‘Ld. CIT(A)’ for short), New Delhi dated 28/06/2025 pertaining to Assessment Year 2011-12. Printed from counselvise.com 2 ITA No. 5947 /D/2025 & C.O. No. 235/D/2025 ACI Vs. Smt. Sudesh Gahlot 2. The Ld. Counsel for the Assessee at the outset submitted that the assessment year involved in the Appeal is beyond the maximum time period of 10 Assessment Years from the date of recording satisfaction under Section 153C of the Act. Therefore, submitted that the assessment order passed by the A.O. is beyond the jurisdiction and liable to be set aside. Further submitted that the Ld. CIT(A) has followed the ratio laid down by the Hon'ble High Court of Delhi in the case of PCIT Vs. Ojjus Medicare (P) Ltd., (2024) 465 ITR 101 (Del) and held that the proceedings initiated u/s 153C of the Act is barred by limitation, therefore, the Department cannot find fault with the order impugned, thus, sought for dismissal of the Appeal of the Revenue. 3. Per contra, the Ld. Departmental Representative by relying on the assessment order, submitted that the assessment has been framed as per the provisions of Income Tax Act, which empowers the A.O. to frame the assessment for the year under consideration. Thus, submitted that the Ld. CIT(A) committed error in setting aside the assessment order, thus sought for allowing the Appeal. 4. We have heard both the parties and perused the material available on record. The Ld. CIT(A) while deciding the First Appeal filed with the Assessee, relied on the ratio laid down by the Jurisdictional High Court in the case of Ojjus Medicare Pvt. Ltd. (supra) and considering the date Printed from counselvise.com 3 ITA No. 5947 /D/2025 & C.O. No. 235/D/2025 ACI Vs. Smt. Sudesh Gahlot satisfaction recorded on 10/06/2021, held that the year under consideration i.e. A.Y 2011-12, will be beyond the maximum time period of 10 Assessment Years from the date of the satisfaction recorded u/s 153C of the Act. Therefore, in the absence of any contrary judicial precedents as the issue has been settled by the Jurisdictional high Corut in the case of Ojjus Medicare Pvt. Ltd. (supra), we find no reason to interfere with the findings and the conclusion of the Ld. CIT(A) in setting aside the assessment order. Accordingly, the Grounds of Appeal of the Revenue are dismissed as devoid of merit. 5. In the result, Appeal of the Revenue in ITA No. 5947/Del/2025 is dismissed. 6. Since we have dismissed the Appeal of the Revenue, the Cross Objection filed by the Assessee becomes in-fructuous. Accordingly, Cross Objection No. 235/Del/2025 filed by the Assessee is dismissed. Order pronounced in the open court on 11th February, 2026 Sd/- Sd/- (KRINWANT SAHAY) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 11 .02.2026 Reshma Naheed, Sr.P.S Printed from counselvise.com 4 ITA No. 5947 /D/2025 & C.O. No. 235/D/2025 ACI Vs. Smt. Sudesh Gahlot Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "