ITAT, Delhi: Sudhir Aggarwal v. DCIT, Central Circle-28 New Delhi [ITA Nos. 3823 to 3830/Del/2026]
Background: A search under Section 132 was conducted on the Alankit Group on 18.10.2019, pursuant to which proceedings under Section 153C were initiated against the assessee on the basis of seized material alleged to pertain to him. The assessee’s case was transferred to the Central Circle under Section 127 on 20.10.2020, a satisfaction note under Section 153C was recorded on 24.12.2021, notices under Section 153C were issued on 28.12.2021, and assessment orders were passed on 30.03.2023 for AYs 2013-14 to 2020-21. Before the ITAT, the assessee challenged the assessments as being barred by limitation under Section 153B, contending that the limitation period commenced from the date of transfer of jurisdiction under Section 127, when the Assessing Officer of the searched person and the other person became the same.
Held: The ITAT held that the assessment orders were barred by limitation under Section 153B. Following its co-ordinate Bench decision in Ajay Gupta v. DCIT, the Tribunal held that where the Assessing Officer of the searched person and the other person is the same, the limitation is to be reckoned from the date of transfer of jurisdiction under Section 127. Since the assessee’s case was transferred on 20.10.2020 and the assessment orders were passed only on 30.03.2023, they were beyond the prescribed period of limitation and liable to be quashed.
Result: The Tribunal allowed the legal ground raised by the assessee, quashed the assessment orders for all the assessment years as barred by limitation, and left the remaining grounds of appeal open as academic.
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