Home Concepts vs Deputy Commissioner Of Income Tax, Central Circle-2

PER MAHAVIR SINGH, VP,

This appeal by the assessee is arising out of order of the ld. CIT(A)-23, New Delhi in appeal no.CIT(A), Delhi-23/10909/2014-15, order dated 08.03.2024. Assessment was framed by Deputy Commissioner of Income Tax, Central Circle-2, New Delhi, for Assessment Year 2015-16 under section 153C r.w.s. 153A of the of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide his order dated 30.12.2022.

At the outset, the ld. Counsel for the assessee stated that the assessment framed under section 153C r.w.s 153A of the Act is time barred and notice issued under section 153C is beyond the limitation period of six years in term of the decision of the Hon’ble Delhi High Court in the case of PCIT Vs. Ojjus Medicare (P) Ltd., (2024) 465 ITR 101 (Del). The ld. Counsel for the assessee stated that the fact that the search was conducted under section 132 of the Act by the Income Tax Department on assessee’s premises of M/s Abhinav Steel & Power Limited and its associate concerns and entities. The premises of M/s Griha Pravesh Buildtech Ltd. and Shri Abhay Kumar was also covered in the search. During course of search in the office of M/s Griha Pravesh Buildtech Ltd., statement of CA Achal Kumar under section 132(4) was recorded and from the records seized from CA Achhal Kumar, name of M/s Home Concepts was also therein, as the assessee was client of Shri Achal Kumar, CA. Accordingly, notice under section 153C was issued on the basis of search on third party on 06.12.2021. The ld. Counsel for the assessee stated that six years is to be completed backward from 06.12.2021 and six years ends at Assessment Year 2016-17, whereas, the present Assessment Year is 2015-16, which is clearly barred by limitation. The ld. Counsel in terms of the above, argued that once the notice u/s 153C is barred by limitation, the entire assessment has become void-ab-initio. When these facts were confronted to the ld. Sr. DR, he could not controvert the above facts situation.

After hearing the ld. Counsel for the assessee and going through the material available on record, we are of the view that assessment framed under section 153C r.w.s. 153A is clearly barred by limitation and hence we quash the assessment. Appeal of the assessee is allowed.

In the result, the appeal of the assessee is allowed.