Delhi High Court – Orders
Gala International Pvt Ltd vs Assistant Commissioner Of Income Tax on 13 January, 2025
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~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) 341/2025
+ W.P.(C) 346/2025
GALA INTERNATIONAL PVT LTD .....Petitioner
Through: Ms Kavita Jha, Sr. Advocate with Mr
Vaibhav Kulkarni, Ms A. Chisty and
Mr Himanshu Aggarwal, Advocates.
versus
ASSISTANT COMMISSIONER OF INCOME TAX
.....Respondent
Through: Mr Shlok Chandra with Ms Naincy
Jain and Ms Madhavi Shukla,
Advocates.
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MR. JUSTICE GIRISH KATHPALIA
ORDER
% 13.01.2025
CM APPL. 1706/2025 in W.P.(C) 338/2025
CM APPL. 1709/2025 in W.P.(C) 339/2025
CM APPL. 1713/2025 in W.P.(C) 341/2025
CM 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. 1705/2025
W.P.(C) 339/2025 and CM APPL. 1708/2025
W.P.(C) 341/2025 and CM APPL. 1712/2025
W.P.(C) 346/2025 and CM APPL. 1726/2025
3. Issue notice. The learned counsel appearing for the Revenue accepts
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notice.
4. The petitioner has filed the present petitions impugning notices dated
31.03.2024 issued under Section 153C of the Income Tax Act, 1961
(hereafter the Act) in respect of the Assessment Years (AYs) 2009-10 to
2012-13. The said notices indicate that a search under Section 132 of the
Act was conducted in the premises of Shri. Sudhir Gulati and Smt. Ritu
Gulati (Kochar Group) on 06.02.2019. It is alleged that during the course of
the search, certain documents were seized and statements were recorded.
Thereafter, the Assessing Officer (AO) of the said searched person recorded
his satisfaction note that the documents seized contained information
pertaining to the petitioner. The said satisfaction note dated 30.03.2024 was
forwarded to the AO exercising jurisdiction in respect of the petitioner, who
thereafter issued the notices under Section 153C of the Act, which are
impugned in the present petitions.
5. The petitioner states that similar notices under Section 153C of the
Act were also issued in respect of AYs 2013-14 to 2019-20 based on a
separate satisfaction note recorded on 18.03.2023. However, the said notices
are not the subject matter of challenge in these petitions. This court is
informed that the assessments were completed pursuant to the said notices
issued under Section 153C of the Act and no addition was made.
6. The principal question that arises for consideration is whether the
impugned notices have been issued beyond the period of limitation.
7. Plainly, the impugned notices are barred by limitation. This is because
the period of limitation of ten years is required to be reckoned from the end
of the AY relevant to the financial year in which the satisfaction note is
recorded and the documents/books of account/assets are handed over by the
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AO of the searched person to the AO of the other person. This issue is
covered by the earlier decision of this court in The Principal Commissioner
of Income Tax – Central-1 v. Ojjus Medicare Pvt. Ltd.: Neutral Citation
No.: 2024:DHC:2629-DB.
8. The period of limitation is required to be determined with reference to
30.03.2024, being the date of the satisfaction note. However, even if the date
of the satisfaction note recorded in respect of AYs 2013-14 to AY 2019-20
is considered, the impugned notices would be beyond the period of
limitation.
9. The learned Senior Counsel appearing for the petitioner has handed
over a statement indicating the period of ten years that would be covered in
respect of the satisfaction note dated 18.03.2023. The said tabular statement
is set out below:
"Assessment Year(s) Computation of 6 years AY 2022-23 1 AY 2021-22 2 AY 2020-21 3 AY 2019-20 4 AY 2018-19 5 AY 2017-18 6 AY 2016-17 7 AY 2015-16 8 AY 2014-15 9 AY 2013-14 10 Barred by Limitation This is a digitally signed order.
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AY 2012-13 –
AY 2011-12 -
AY 2010-11 -
AY 2009-10
10. The learned counsel appearing for the Revenue fairly concurs with the
said tabular statement.
11. In view of the above, we find merit in the contention that the
impugned notices are unsustainable. Accordingly, the same are set aside.
The petitions are allowed in the aforesaid terms. Pending applications are
also disposed of.
VIBHU BAKHRU, ACJ
GIRISH KATHPALIA, J
JANUARY 13, 2025/tr
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This is a digitally signed order.
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The Order is downloaded from the DHC Server on 20/01/2025 at 21:16:51
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