ACIT, NEW DELHI V. BAZEL INTERNATIONAL LIMITED, NEW DELHI

ITA 2171/DEL/2025

AI Insights

This case involves an appeal by the Revenue against the order of the CIT(A)-23, New Delhi, which pertained to the assessment year 2009-10. The primary issue was the legality of the proceedings initiated under section 153C of the Income Tax Act, 1961, following a search and seizure operation conducted on 29.05.2018. The operation was related to M/s Ritika Pvt. Ltd and involved documents pertaining to the assessee, Bazel International Ltd. The Assessing Officer (AO) recorded a satisfaction note on 14.07.2021, leading to the issuance of a notice under section 153C on the same day. The Revenue contended that the CIT(A) erred in deleting the addition of Rs. 7,92,00,000 made by the AO regarding a fictitious loss claimed by the assessee on the sale of shares. However, the tribunal found that the proceedings for AY 2009-10 were barred by limitation, referencing the judgment of the Hon'ble Delhi High Court in the case of Ojjus Medicare Pvt. Ltd.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775895 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 01-04-2025
• Other Referred Cases: Ojjus Medicare Pvt. Ltd ITA no 52/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Keywords: Search and seizure
• Section: 132

Judgement Text

"Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘A’ BENCH, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 2171/DEL/2025 [A.Y 2009-10] The A.C.I.T. Vs. Bazel International Ltd New Delhi C- 119, 1st Floor, Lajpat Nagar - II New Delhi PAN: AACCB 1474 G (Assessee) (Respondent) Assessee By : None Department By : Shri Jitender Singh, CIT-DR Date of Hearing : 26.08.2025 Date of Pronouncement : 26.08.2025 ORDER PER NAVEEN CHANDRA, AM :- This appeal by the Revenue is directed against the order of the ld. CIT(A)-23, New Delhi dated 14.01.2025 pertaining to A.Y 2009-10. 2. The grievances raised by the Revenue read as under: “1. The Ld. CIT(A) has erred in deleting the entire addition of Rs. 7,92,00,000/-made by Assessing Officer on account of Printed from counselvise.com ITA No. 2171 /DEL/2025 ACIT Vs Bazel International. [A.Y 2009-10] Page 2 of 4 disallowance of fictitious loss claimed by the assessee on sale of shares without considering the merit of the case. 2. Whether on the facts and circumstances of the case, Ld. CIT(A) have erred in holding that assessment year 2009-10 could not have been covered for a search operation conducted on 29.05.2018 in view of explanation 1 to section 153A/153C of the Income tax Act, 1961. 3. The assessee craves to add or amend any/all the grounds of appeal before or during the hearing of the appeal.” 3. None appeared on behalf of the assessee. We decided to proceed ex-parte. The ld. DR was heard at length. Case records carefully perused. 4. At the very outset, we find that a search and seizure was conducted u/s 132 in the case of M/s Ritika Pvt. Ltd and related entities of RPL Group on 29.05.2018. Certain documents were found pertaining to the assessee. The Assessing Officer of the searched person as well as the assessee were the same. Satisfaction note in the case of the searched person was recorded by the AO on 09.07.2021 and the Satisfaction note in the case of the assessee was also recorded by the same AO on 14.07.2021. On the basis of satisfaction note dated 14.07.2021, notice u/s 153C was issued on 14.07.2021. The issue before us is whether the AY 2009-10, in the case of the assessee, could have Printed from counselvise.com ITA No. 2171 /DEL/2025 ACIT Vs Bazel International. [A.Y 2009-10] Page 3 of 4 been covered for a search operation conducted on 29.05.2018 in view of Explanation 1 to section 153A/153C of the Act and where satisfaction note u/s 153C was recorded on 14.07.2021. 5. It is no longer res-intergra, in the light of the judgment of the Hon'ble Delhi High Court in the case of Ojjus Medicare Pvt. Ltd ITA no 52/2024, that the proceeding u/s 153C can be initiated upto a maximum period of 10 years, calculated from the year in which the books of accounts are handed over to the AO of the third party upon satisfaction recorded u/s 153C of the Act. In the instant case, the satisfaction has been recorded on 14.07.2021 as AO of the searched party as well as AO of the third party. In such factual matrix, the period of 10 years is to be computed from the AY 2022-23, the year in which the satisfaction u/s 153C was recorded, and hence the notice u/s 153C can be issued only upto AY 2013-14. In that view of the matter therefore, we are of the considered view that the initiation of proceeding u/s 153C for the AY 2009-10 is barred by limitation. The impugned A.Y is beyond 10 years and hence the assessment made is illegal and without going into the merits of the case, the assessment made is accordingly, quashed. The grounds are dismissed Printed from counselvise.com ITA No. 2171 /DEL/2025 ACIT Vs Bazel International. [A.Y 2009-10] Page 4 of 4 6. The appeal of Revenue in ITA No. 2171/DEL/2025 stands dismissed. Order pronounced in open court on 26.08.2025. Sd/- Sd/- [SATBEER SINGH GODARA] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 09th September, 2025. VL/ Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website 8. Date of uploading, inf not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "