Limitation Period Begins from Date of Document Transfer from AO of Searched Person to AO of Other Person u/s 153C: Delhi HC [Read Order]
The Delhi High Court ruled that the limitation under Section 153C begins from the date of the document transfer between the AOs of the searched person and the other person
![Limitation Period Begins from Date of Document Transfer from AO of Searched Person to AO of Other Person u/s 153C: Delhi HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/Limitation-Period-Document-Transfer-from-AO-Delhi-HC-taxscan.jpg "Limitation Period Begins from Date of Document Transfer from AO of Searched Person to AO of Other Person u/s 153C: Delhi HC [Read Order]")
In a recent ruling, the Delhi High Court held that the limitation period for completing assessments under Section 153C of the Income Tax Act begins from the date when documents are transferred from the Assessing Officer (AO) of the searched person to the AO having jurisdiction over the assessee. Carol Infrastructure Private Limited had filed a writ petition challenging a notice issued...
In a recent ruling, the Delhi High Court held that the limitation period for completing assessments under Section 153C of the Income Tax Act begins from the date when documents are transferred from the Assessing Officer (AO) of the searched person to the AO having jurisdiction over the assessee.
Carol Infrastructure Private Limited had filed a writ petition challenging a notice issued under Section 153C on 19.12.2023 in relation to Assessment Year (AY) 2015-16. The notice was based on documents seized during a search conducted on 18.10.2019 on members of the Alankit Group. A satisfaction note dated 24.06.2022 was recorded by the AO of the searched person, confirming that certain documents related to the petitioner and were handed over to the AO of Carol Infrastructure for necessary action under Section 153C.
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The petitioner argued that the limitation period for passing an assessment under Section 153C, as governed by Section 153B, had already expired by the time the notice was issued. Since the documents were transferred on 24.06.2022, the limitation period of twelve months from the end of the financial year 2022-23 lapsed on 31.03.2024. The petition was filed on 22.03.2025, by which time the period for passing the assessment order had clearly expired.
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The Income Tax Department initially argued that the documents were received by the jurisdictional AO only on 09.06.2023. The department’s counsel later conceded that the satisfaction note itself recorded the transfer date as 24.06.2022, and no grounds existed to dispute this official record.
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A two-judge bench led by Justice Vibhu Bakhru and Justice Tejas Karia observed that the statutory scheme under Section 153C does not permit any delay or gap between the preparation of the satisfaction note and the transfer of documents.
The court explained that, as per the proviso to Section 153C, the relevant date for computing limitation is the date when the AO of the “other person” receives the documents from the AO of the searched person.
The court ruled that the assessment proceedings initiated through the notice dated 19.12.2023 were time-barred. The impugned proceedings were quashed. The writ petition was allowed, and all pending applications were disposed of.
To Read the full text of the Order CLICK HERE
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