ISHA GUPTA,PITAMPURA DELHI V. CENTRAL CIRCLE 28, DELHI, JHANDEWALAN

ITA 4319/DEL/2025

AI Insights

The case involves appeals by Isha Gupta against the orders of the Commissioner of Income-tax (Appeals)-29, New Delhi, which arose from assessments made under section 144 read with section 153C of the Income Tax Act, 1961, by the DCIT, Central Circle-28, New Delhi. The assessments were based on incriminating documents found during a search and seizure operation in the case of Shri Manoj Kumar Singh and Associates. The legal heir of the seized documents, Smt. Isha Gupta, contested the validity of the assessments, arguing that the six-year period for assessment under section 153C should be calculated from the date the material was handed over to her jurisdictional AO, which was after the relevant assessment years in question.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777316 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2025
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 07-07-2025
• Other Referred Cases: CIT vs. Jasjit Singh [2023 SCC Online 1265], ITO vs. Vikram Sujitkumar Bhatia & Ors [2023 SCC Online SC 370], PCIT-1 vs. Ojjus Medicare Pvt. Ltd. [2024 SCC OnLine Del 2439]
• Laws Referred To: Income Tax Act, 1961
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: RAGHAV SHARMA; MOHIT GUPTA; AGNI CHAUDHARY
• Keywords: Search and seizure
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A : NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITAs No.1764 & 4319/Del/2025 Assessment Years: 2013-14 & 2014-15 Isha Gupta, KU 73, Pitampura, Sri Nagar Colony, North West Delhi, New Delhi. PAN: AAOPG4352K Vs DCIT, Central Circle-28, Delhi. (Appellant) (Respondent) Assessee by : Shri Raghav Sharma & Shri Mohit Gupta, CAs; & Ms Agni Chaudhary, Advocate Revenue by : Shri Ajay Kumar Arora, Sr. DR Date of Hearing : 03.09.2025 Date of Pronouncement : 19.09.2025 ORDER PER ANUBHAV SHARMA, JM: These are appeals preferred by the assessee against the orders dated 22.01.2025 and 12.06.2025 of the Commissioner of Income-tax (Appeals)-29, New Delhi (hereinafter referred to as the ld. First Appellate Authority or ‘the Ld. FAA’ for short) in Appeals No..CIT(A), Delhi-29, 10187/2012-13 and CIT(A), Delhi-29, 10507/2013-14 arising out of the appeals before it against the orders dated 07.02.2023 u/s 144 r.w.s. 153C of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) DCIT, Central Circle-28, New Delhi (hereinafter referred to as the Ld. AO). Printed from counselvise.com ITAs No.1764 & 4319/Del/2025 2 2. On hearing both the sides, we find that the assessee’s return was originally filed on 29.07.2013. Subsequently, during search and seizure operations in the case of Shri Manoj Kumar Singh and Associates on 14.10.2020, alleged incriminating documents were found from the premises in the name of Shri Adarsh Mohan and seized. Shri Adarsh Mohan died in the financial year 2015-16 and, accordingly, after investigations, it was found that Smt. Isha Gupta, wife of Shri Adarsh Mohan is the legal heir. The proceedings u/s 153C of the Act were initiated on 20.05.2022. The assessee’s return filed u/s 153C of the Act was found to be invalid and was not taken on record and best judgement assessment was framed u/s 153C r.w.s. 144 of the Act. 3. At outset, the ld. AR has argued that the whole assessment is vitiated as, in the case of the assessee, six year period u/s 153C of the Act has to be considered from the date of handing over of the material by the AO of the searched person to the jurisdictional AO of the assessee and reliance in this regard is placed on the decisions of the Hon’ble Supreme Court in the case of CIT vs. Jasjit Singh [2023 SCC Online 1265], ITO vs. Vikram Sujitkumar Bhatia & Ors [2023 SCC Online SC 370] and the decision of the Hon’ble Delhi High Court in PCIT-1 vs. Ojjus Medicare Pvt. Ltd. [2024 SCC OnLine Del 2439]. Printed from counselvise.com ITAs No.1764 & 4319/Del/2025 3 4. In the case in hand, the copy of satisfaction note was provided at the time of hearing as Annexure-A to the synopsis. The same is dated 18.04.2022. That can be considered to be the date of handing over of the record which means that point of origin of six years has to be calculated from the financial year 2022-23, i.e., assessment year 2023-24 onwards. Thus, the AO could have issued notice u/s 153C of the Act for AY 2018-19 onwards for AY 2023-24. The present assessment years 2013-14 and 2014-15 fall beyond the block of six years. 5. In the light of the aforesaid discussion, the assumption of jurisdiction u/s 153C of the Act was vitiated. Consequently, the appeals are allowed and the impugned assessments are quashed. Order pronounced in the open court on 19.09.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19th September, 2025. dk Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi Printed from counselvise.com "