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Judgment
PER MADHUMITA ROY, JM:
The instant appeals filed by the Revenue are directed against the orders dated both 30.09.2025 passed by the ld. Commissioner of Income-tax (Appeals)-25, New Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment orders both dated 28.02.2024 passed by the ACIT, Circle-25, New Delhi (hereinafter referred to as ‘the ld. AO’) under Section 153C of the Act for Assessment Years 2014-15 & 2015-16.
The assessee preferred two writ petitions against the order passed by the Ld. AO before the Hon’ble Delhi High Court for AY 2014-15 and 2015-16, which was disposed of by the common order dated 13.05.2024. It was observed that upon perusal of the satisfaction recorded by the Ld. AO, it appears that income which was alleged to have been escaped assessment ‘relevant assessment year’ does not exceed Rs.50 lakhs. Further that the Ld. AO has also failed to record its satisfaction that the escaped income is likely to exceed Rs.50 lakhs or more cumulatively for the ‘relevant assessment year’ and thereby fulfilling the threshold requirement as prescribed by the Fourth Proviso to Section 153A of the Act. In that view of the matter, the aforesaid satisfaction would have to be based on an assessment of material gathered and potentially of the same being indicative of the escapement exceeding Rs.50 lakhs. The formation of the opinion in this regard would have to be based not on mere ipse dixit but reflective of a fair assessment of the quantum of income likely to have escaped assessment as distinct from mere speculation and conjecture since the precondition of Rs.50 lakhs or more constitutes a sine qua non for initiating action for the extended ten years block, the aforesaid satisfaction and the reasons in support thereof would have borne out from the satisfaction note itself, as observed by the Hon’ble Supreme Court in the case of CIT vs Ojjus Medicare Private Limited, wherein the Hon’ble Supreme Court has been pleased to quash the impugned notice under Section 153C of the Act dated 16th March, 2023 for Assessment Years 2014-15 and 2015-16 in absence of alleged escapement of assessment likely to exceed Rs.50 lakhs in the relevant assessment year.
Having regard to this particular aspect of the matter, the Ld. First Appellate Authority by under its separate orders dated 30.09.2025 for both the years quashed the assessment order dated 28.02.2024 passed under Section 153C of the Act as the same failed to survive which in our considered opinion is found to be just and proper so as to not to warrant interference.
In the result, both the appeals filed by the Revenue are dismissed.