AI Structured Summary
Not yet generated for this judgment
Judgment
PER SATBEER SINGH GODARA, JM
These assessee’s three appeals ITA Nos. 8023, 8024 & 8025/Del/2025 for assessment years 2016-17, 2017-18 & 2018-19, arise against the Pr. Commissioner of Income Tax (Appeals)-25 [in short, the “PCIT(A)”], New Delhi’s orders, all dated 27.10.2025 passed in case nos. 11183/2015-16, 10818/2016-17 and 10683/2017-18, involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively.
Heard both the parties. Case file perused.
We notice at the outset that there arises the first and foremost issue of validity of all these impugned section 153C r.w.s. 143(3) assessments itself framed by the learned Assessing Officer on 08.03.2024.
This is for the precise reason that the learned Assessing Officer whilst acting as assessing authority of the searched person(s), had in fact recorded his section 153C satisfaction on 24.06.2022 that the corresponding documents found/seized during the course of search herein, “belonged” to the assessee than either pertained or any information there from relating to the same; as the case may be.
Faced with this situation, learned CIT(DR) seeks to buttress the point that the Assessing Officer further appears to have clarify in the very satisfaction note that the aforesaid seized document contained the information relating to the assessee as well.
We find no merit except the Revenue’s foregoing stand. We make it clear that once the legislature has already amended section 153C(1) of the Act vide Finance Act, 2015 w.e.f. 01.06.2015 wherein clause (a) stipulates initiation of corresponding proceedings qua specified money, bullion, jewellery etc. as falling in the category of “belongs to” a third party; or any books of account or documents and information etc. as pertaining or relating to such an assessee under clause (b) thereto. Learned departmental authorities could not use these three expressions interchangeable anymore going by the principles of stricter interpretation as per Commissioner Vs. Dilip Kumar (2018) 9 SSC 1 (SC). We accordingly quash all these three section 153C assessments in very terms.
All remaining pleadings between the parties stand rendered academic.
These assessee’s three appeals ITA Nos. 8023, 8024 & 8025/Del/2025 are allowed in above terms. A copy of this common order be placed in the respective case files.