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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)-25 [in short, the “CIT(A)”], New Delhi’s order dated 07.03.2025 passed in DIN and order no. ITBA/APL/M/250/2024-25/1074194256(1), involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It transpires during the course of haring that the assessee raises its first and foremost legal ground challenging validity of the impugned section 153C assessment dated 31.03.2022 itself. We make it clear that the learned departmental authorities had carried out the search in question in M/s Alankit Group of Companies on 18.10.2019. And that the learned Assessing Officer of the said searched person recorded his satisfaction on 30.02.2023; which, in turn, was forwarded to the assessee’s Assessing Officer followed by his latter round of satisfaction recorded on 23.02.20241(pages 106 to 109 in the papaerbook).
The assessee’s vehement contention in this factual backdrop is that its assessing officer has failed to record any categoric satisfaction that the alleged seized documents forming basis to proceed in its case holds a “bearing” on determination of its taxable income which forms a mandatory provision as per in Saksham Commodities Ltd. Vs. ITO (2024) 464 ITR 1 (Delhi)(HC).
The Revenue’s vehemently supports the impugned satisfaction note that such an expression need not be explicitly incorporated therein as we ought to appreciate the relevant facts in totality of circumstances.
We have given our thoughtful consideration to the assessee and the revenue’s vehement submissions. We are of the considered view that once the learned Assessing Officer has failed to record his section 153 satisfaction in the assessee’s case as per provisions of the Act, the assessment herein is not sustainable as per their lordships aforesaid landmark decision. Quashed accordingly. All other pleadings between the parties stand rendered academic.
This assessee’s appeal is allowed.