Sh. Puneet Dewan V. Deputy Commissioner of Income Tax Central Circle -19 New Delhi

W.P.(C)/941/2025

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The case involves Sh. Puneet Dewan, the petitioner, who challenged a notice issued by the Deputy Commissioner of Income Tax under Section 153C of the Income Tax Act, 1961, seeking to reopen assessments for the Assessment Year 2014-15. The notice was based on a search conducted under Section 132 of the Act in the case of Sh. Praveen Kakkar and others. The core issue was the computation of the limitation period for issuing such notices. The petitioner argued that the notice was beyond the period of limitation, a position supported by previous decisions of the Delhi High Court in Ojjus Medicare Pvt. Ltd. and RRJ Securities Ltd. The Revenue contended that these decisions required reconsideration, which the court did not accept.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 794424 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 24-01-2025
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner of Income Tax Central 1 vs. Ojjus Medicare Pvt. Ltd. & Ors., Principal Commissioner of Income Tax-15 vs. Jasjit Singh, Commissioner of Income Tax-7 vs. RRJ Securities Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: VIPUL AGRAWAL; SAKSHI SHAIRWAL
• Assessee Lawyers: VIBHOOTI MALHOTRA; UDIT SHARMA; ANIKET KHANDURI; BHUVNESH SATIJA
• Keywords: Income Tax; Limitation Period; Reassessment; Search and seizure; Satisfaction Notes
• Section: 132; 153C

Judgement Text

"$~43 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 941/2025 SH. PUNEET DEWAN .....Petitioner Through: Ms. Vibhooti Malhotra, Mr. Udit Sharma, Mr. Aniket Khanduri and Mr. Bhuvnesh Satija, Advocates versus DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -19 NEW DELHI .....Respondent Through: Mr. Vipul Agrawal, SSC with Ms. Sakshi Shairwal, JSC CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 24.01.2025 CM APPL. 4627/2025 1. Exemption allowed subject to all just exceptions. 2. The application stands disposed of. W.P.(C) 941/2025 & CM APPL. 4626/2025 (Stay) 3. Issue notice. 4. Mr. Vipul Agrawal, SSC for Revenue accepts notice on behalf of the respondent. 5. The petitioner has filed the present petition impugning a notice dated 14.06.2024 issued under Section 153C of the Income Tax Act, 1961 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/01/2025 at 12:45:13 (hereafter the Act) seeking to reopen assessments for the Assessment Year (AY) 2014-15. 6. It is the petitioner’s case that the said notice is beyond the period of limitation. Concededly, this case is covered by the decision of this court in Principal Commissioner of Income Tax Central 1 vs. Ojjus Medicare Pvt. Ltd. & Ors., Neutral Citation 2024:DHC:2629-DB. The learned counsel appearing for the Revenue submits that the Ojjus Medicare (supra) may require reconsideration as it was incorrectly decided. 7. It is noted that the decision in Ojjus Medicare (supra) is also premised on a decision of the Supreme Court in Principal Commissioner of Income Tax-15 vs. Jasjit Singh: 2023:458 ITR 437 (SC). We are unable to accede to the submissions made on behalf of the Revenue that the decision in Ojjus Medicare (supra) requires to be revisited or that the decision in Jasjit Singh (supra) is distinguishable. 8. In the present case, the impugned notice is premised on a search that was conducted under Section 132 of the Act in case of Sh. Praveen Kakkar, Sh. Lalit Kumar Chhallani/Miglani Group of cases on 07.04.2019. The Assessing Officer (AO) of the searched person had recorded a satisfaction notes dated 11.04.2023 and 12.06.2023 to the effect that the books of accounts, documents or material found during the said search under Section 132 of the Act contained information pertaining to the petitioner. 9. In terms of the decision of this Court in Commissioner of Income Tax-7 vs. RRJ Securities Ltd, Neutral Citation 2015:DHC:8989-DB and Ojjus Medicare (supra) the period of limitation is required to be computed from the date of the satisfaction notes as recorded by the AO of the searched person which in this case was recorded on 11.04.2023 and 12.06.2023. The This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/01/2025 at 12:45:13 maximum period of 10 years, which would be covered under Section 153C of the Act, in this case, is required to be computed from end of the assessment year relevant to the financial year in which the satisfaction note is recorded. 10. The petitioner has set out a tabular statement indicating the aforesaid term, which could possibly be covered under a notice issued under Section 153C of the Act in this case. The said tabular statement is reproduced below:- Computation of the ten-year block period as provided under Section 153C read with Section 153C of the Act No. of years AY 2024-25 1 AY 2023-24 2 AY 2022-23 3 AY 2021-22 4 AY 2020-21 5 AY 2019-20 6 AY 2018-19 7 AY 2017-18 8 AY 2016-17 9 AY 2015-16 10 11. It is apparent from the above that the impugned notice is beyond the period of limitation. Accordingly, the same is set aside on this ground alone. 12. We note that the petitioner has also raised certain other grounds. However, in view of our conclusion that the notice is issued beyond the period of limitation, we do not consider it apposite to examine the other issues, as raised. 13. The petition is allowed and disposed of in the aforesaid terms. The This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/01/2025 at 12:45:13 pending application also stands disposed of. DEVENDRA KUMAR UPADHYAYA, CJ TUSHAR RAO GEDELA, J JANUARY 24, 2025 Aj This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/01/2025 at 12:45:13 "