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Judgment
PER SATBEER SINGH GODARA, JM
These assessee’s twin appeals ITA Nos.7672 & 7673/Del/2025 for assessment years 2018-19 and 2019-20, arise against the Commissioner of Income Tax (Appeals)-25 [in short, the “CIT(A)”], New Delhi’s order, both dated 04.09.2025, having DINs and orders no. ITBA/APL/M/250/2025-26/1080332543(1) and ITBA/APL/M/250/2025-26/1080335080(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.
We advert to the assessee’s former appeal ITA No. 7672/Del/2025 for assessment year 2018-19. Its first and foremost legal argument challenges validity of the impugned section 153C assessment itself framed herein on 10.01.2024 for want of any incriminating material found/seized during the course of departmental search action dated 18.10.2019 in M/s. Alankit group of cases.
We wish to make it clear that the aforesaid search led to twin sections 153C satisfaction recorded by both the searched party’s as well as the assessee’s Assessing Officer(s); as the case may be, on 22.06.2022 and 27.02.2023 (pages 4 to 7 in the paper-book) respectively. The Revenue could hardly dispute that the corresponding incriminating material quoted in the assessee’s case pertained to financial year 2018-19 only allegedly indicating the amount debited in ledger of Rs.3.88 lakhs; and, credited to the beneficiary of Rs. 2 lakhs; respectively. There was no incriminating material for the assessment year 2018-19 in the assessee’s case in other words. There could be further no quarrel that going by section 153C(1) 1st proviso the date of search in such an instance involving an assessee other than the searched party is that of receipt of records etc. by the latter Assessing Officer coming to FY 2023-24 and FY 2024-25. The impugned assessment year 2018-19 happens to be an “unabated” one wherein any addition in the assessee’s ought to be made based on the specific material in light of PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). We thus quash the impugned assessment in very terms. The assessee’s instant former appeal ITA No.7672/Del/2025 succeeds therefore.
The outcome of the assessee’s latter appeal ITA No.7673/Del/2025 for AY 2019-20 would be hardly any different. This is for the precise reason that our attention is invited to page 27 (para 20) in assessment order invoking special rate of tax under section 68 of the Act @ 60% on the alleged misreported income; coming to Rs.1,88,934/- along with commission expenditure of Rs.5,668/- under section 69C; respectively. It is an admitted position that section 115BBE of the Act invoked in the assessee’s hands could nowhere be held as specific incriminating material. So far as the unexplained expenditure is concerned, we do not see any alleged accommodation entry addition made in the assessee’s hands as well. We thus conclude in this factual backdrop that the foregoing legal proposition would cover the assessee’s instant latter appeal as well. Both these impugned additions made in its hands stand deleted therefore.
All other remaining pleadings between the parties stand rendered academic.
These assessee’s twin appeals ITA Nos. 7672 & 7673/Del/2025 are allowed. A copy of this common order be placed in the respective case file.