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Judgment
ORDER
This assessee’s appeal for Assessment Year 2019-20 arises against the Commissio ner of Income Tax(Appeals) (for short, ‘CIT(A)’), Delhi-25’s order dated 14.01.2026 passed in DIN & order No. ITB A/APL/S/250/2025-26/1084782851(1), involving proceedings u/s 153C of the Income Tax Act, 1961; hereinafter referred to as, “the Act” .
Heard both the parties at length. Case file perused.
Coming to the first and fore most legal issue arising for our apt adjudication herein, we note that the learned departmental authorities had carried o ut the search in questio n on 18 .10.2019 in Alankit group of cases. And that the Assessing Officer of the said searched party recorded his section 153C o f satisfaction on 24.06.2022 that the asse ssee was the beneficiary of accommodation entries amounting to Rs. 15,00,000/- , in the relevant previous year (Page-14 in the case records). The is no indication that he had made it clear therein that the said material had “a bearing” in de terminatio n of the assessee’s total taxable income.
Learned CIT(DR) vehement states in this factual backdrop that we o ught to appreciate the totality of circumstances wherein such a satisfaction no te may not always state that the corresponding seized material must have “a bearing” e xplicitly in his latter round of satisfaction.
We are afraid that Revenue’s foregoing stand hardly deserves to be accepte d once case law Saksham Commodities Ltd. Vs. ITO (2024) 464 ITR 1 (Delhi) has already settled the issue in the assessee’s favour that such a failure on the Assessing Officer’s part is very much fatal to validity of the impugned proceedings. The impugned section 153C assessment is quashed accordingly.
All other remaining pleadings between the parties stand rendered academic.
This assessee’s appe al is allowed.