+ W.p.(C) v. Asst. Commissioner Of Income-Tax & Anr

$~89 IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 16080/2024 and CM APPL. 67520/2024GEOTECH HOMZ PRIVATE LIMITED.....PetitionerGEOTECH HOMZ PRIVATE LIMITED.....Petitioner .....Petitioner Through:Mr Harshu Wason with Ms NehaGupta, Advocates. versus ASST. COMMISSIONER OF INCOME-TAX & ANR. .....Respondents Through:Mr Vipul Agrawal with Ms SakashiShairwalandMrAkshatSingh,Advocates. CORAM:HON'BLE MR. JUSTICE VIBHU BAKHRUHON'BLE MR. JUSTICE TEJAS KARIAO R D E R%24.03.2025 1.The petitioner has filed the present petition, inter alia, praying as under: “(a) Quash the Impugned Notice dated 29.08.2024 (Annexure P-1) issued by the Respondent under Section 148 of the Income-Tax Act, 1961 for Assessment Year 2015-16.(b)Quashtheapprovaldated27.08.2024givenbytheRespondent No. 2 under Explanation 2(iv) of Section 148 of theAct.” 2.The petitioner contends that the notice was issued beyond the periodof limitation as prescribed under Section 149(1) of the Income Tax Act,1961 [the Act]. The impugned notice dated 29.08.2024 is premised on asearch conducted under Section 132 of the Act or a requisition made underSection 132A of the Act in respect of Gaur Group and related persons. The search was conducted on 02.03.2022. It is stated that there is no satisfactionnote which has been recorded by the Assessing Officer of the searchedperson. However, the Revenue states that during the course of the search,certain incriminating material was found, which was received by the AOexercising jurisdiction in case of the petitioner in June, 2022.As notedabove, the impugned notice was issued on 29.08.2024. 3.The requirement of recording a satisfaction note by the AO exercisingjurisdiction in case of a searched person to the effect that the material foundduring the search under Section 132 of the Act or requisition under Section132A of the Act, belongs to another assessee [not being a searched person]or contains information relating to another assessee, is not applicable in casewhere the search is conducted after 31.03.2021. Thus, the date on which theAO decides to initiate action for reassessment would necessarily have to beconsidered for the purposes of calculating the limitation as provided underSection 153C read with Section 153A of the Act. 4.This issue is covered by various decisions of this court including inDinesh Jindal v. Assistant Commissioner of Income Tax, Central Circle20, Delhi & Others: Neutral Citation No.: 2024:DHC:4554-DB, KADHousing Private Limited v. Deputy Commissioner of Income Tax CentralCircle-6, Delhi : Neutral Citation No.: 2024:DHC:8214-DB as well asPankaj Jain v. Assistant Commissioner of Income Tax, Central Circle 3,Delhi & Anr. : Neutral Citation No. : 2025:DHC:157-DB. 5.In The Pr. Commissioner of Income Tax - Central-1 v. OjjusMedicare Pvt. Ltd : Neutral Citation : 2024:DHC:2629-DB, this court hadexplained that the block period of ten years is required to be computed fromthe end of the assessment year relevant to the financial year in which the AO of the searched person has recorded its satisfaction and handed over thematerial or books of account to the AO of the assessee not being thesearched person. Thus, the block period of ten years is required to becomputed from the end of the AY 2025-26, which is relevant to the financialyear in which the impugned notice was issued. 6.The learned counsel for the Assessee has handed over a tabularstatement setting out the block of ten years that would possibly be coveredby a notice issued in financial year 2024-25. The said tabular statement isset out below: ANAYSIS OF TIME-PERIOD TO ISSUEREASSESSMENT NOTICEDate of Issuance of notice under Section 148 of theAct – 29.08.2024 *This chart is prepared in light of the first proviso ofSection 149 of the Act as amended by Finance Act,2021 7.The learned counsel appearing for the Revenue has no cavil with the 6.The learned counsel for the Assessee has handed over a tabularstatement setting out the block of ten years that would possibly be coveredby a notice issued in financial year 2024-25. The said tabular statement isset out below: ANAYSIS OF TIME-PERIOD TO ISSUEREASSESSMENT NOTICEDate of Issuance of notice under Section 148 of theAct – 29.08.2024 *This chart is prepared in light of the first proviso ofSection 149 of the Act as amended by Finance Act,2021 7.The learned counsel appearing for the Revenue has no cavil with the said tabular statement.He, however, submits that the Revenue has notaccepted the manner of calculating the block of ten years as explained inThe Pr. Commissioner of Income Tax - Central-1 v. Ojjus Medicare Pvt.Ltd. (supra) and has preferred a Special Leave Petition against the saiddecision. 8.In view of the above, the present petition is allowed and the impugnednotice issued under Section 148 of the Act is set aside. Pending applicationalso stands disposed of. VIBHU BAKHRU, J MARCH 24, 2025/tr TEJAS KARIA, J Click here to check corrigendum, if any