Gala International Pvt Ltd v. Assistant Commissioner Of Income Tax

$~104 to 107 IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 338/2025+W.P.(C) 339/2025+W.P.(C) 339/2025 +W.P.(C) 341/2025 +W.P.(C) 346/2025 GALA INTERNATIONAL PVT LTD .....PetitionerThrough:Ms Kavita Jha, Sr. Advocate with MrVaibhav Kulkarni, Ms A. Chisty andMr Himanshu Aggarwal, Advocates.Vaibhav Kulkarni, Ms A. Chisty andMr Himanshu Aggarwal, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX .....RespondentThrough:Mr Shlok Chandra with Ms NaincyJainandMsMadhaviShukla,Advocates.JainandMsMadhaviShukla,Advocates. CORAM:HON'BLE THE ACTING CHIEF JUSTICEHON'BLE MR. JUSTICE GIRISH KATHPALIAO R D E R%13.01.2025 CM APPL. 1706/2025 in W.P.(C) 338/2025CM APPL. 1709/2025 in W.P.(C) 339/2025CM APPL. 1713/2025 in W.P.(C) 341/2025CM APPL. 1727/2025 in W.P.(C) 346/2025 1.Exemption is allowed, subject to all just exceptions. 2.The applications are disposed of. W.P.(C) 338/2025 and CM APPL. 1705/2025W.P.(C) 339/2025 and CM APPL. 1708/2025W.P.(C) 341/2025 and CM APPL. 1712/2025W.P.(C) 346/2025 and CM APPL. 1726/2025 3.Issue notice. The learned counsel appearing for the Revenue accepts notice. 4.The petitioner has filed the present petitions impugning notices dated31.03.2024 issued under Section 153C of the Income Tax Act, 1961(hereafter the Act) in respect of the Assessment Years (AYs) 2009-10 to2012-13. The said notices indicate that a search under Section 132 of theAct was conducted in the premises of Shri. Sudhir Gulati and Smt. RituGulati (Kochar Group) on 06.02.2019. It is alleged that during the course ofthe search, certain documents were seized and statements were recorded.Thereafter, the Assessing Officer (AO) of the said searched person recordedhis satisfaction note that the documents seized contained informationpertaining to the petitioner. The said satisfaction note dated 30.03.2024 wasforwarded to the AO exercising jurisdiction in respect of the petitioner, whothereafter issued the notices under Section 153C of the Act, which areimpugned in the present petitions. 5.The petitioner states that similar notices under Section 153C of theAct were also issued in respect of AYs 2013-14 to 2019-20 based on aseparate satisfaction note recorded on 18.03.2023. However, the said noticesare not the subject matter of challenge in these petitions.This court isinformed that the assessments were completed pursuant to the said noticesissued under Section 153C of the Act and no addition was made. 6.The principal question that arises for consideration is whether theimpugned notices have been issued beyond the period of limitation. 7.Plainly, the impugned notices are barred by limitation. This is becausethe period of limitation of ten years is required to be reckoned from the endof the AY relevant to the financial year in which the satisfaction note isrecorded and the documents/books of account/assets are handed over by the AO of the searched person to the AO of the other person. This issue iscovered by the earlier decision of this court in The Principal Commissionerof Income Tax – Central-1 v. Ojjus Medicare Pvt. Ltd.: Neutral CitationNo.: 2024:DHC:2629-DB. 8.The period of limitation is required to be determined with reference to30.03.2024, being the date of the satisfaction note. However, even if the dateof the satisfaction note recorded in respect of AYs 2013-14 to AY 2019-20is considered, the impugned notices would be beyond the period oflimitation. 9.The learned Senior Counsel appearing for the petitioner has handedover a statement indicating the period of ten years that would be covered inrespect of the satisfaction note dated 18.03.2023. The said tabular statementis set out below: 10.The learned counsel appearing for the Revenue fairly concurs with thesaid tabular statement. 11.In view of the above, we find merit in the contention that theimpugned notices are unsustainable. Accordingly, the same are set aside.The petitions are allowed in the aforesaid terms. Pending applications arealso disposed of. VIBHU BAKHRU, ACJ GIRISH KATHPALIA, J JANUARY 13, 2025/trClick here to check corrigendum, if any