Pradeep Kumar Gupta vs Assistant Commissioner Of Income Tax

PER SATBEER SINGH GODARA, JM:

This assessee’s seven appeals ITA Nos. 7733 to 7739/Del/2025, arise against the Principal Commissioner of Income Tax (Appeal)-25 [in short, “CIT(A)”], New Delhi’s as many DINs & Order Nos. ITBA/APL/M/250/2025-26/1082143323(1), ITBA/APL/M/250/2025-26/1082143919(1), ITBA/ APL/ M/ 250/2025-26/1082144197(1), ITBA/ APL/ M/ 250/ 2025-26/ 1082144763(1), ITBA/ APL/ M/ 250/ 2025-26/ 1082146498(1), ITBA/APL/M/250/2025-26/1082146609(1), ITBA/ APL/ M/ 250/ 2025-26/ 1082146725(1) all dated 30.10.2025, involving proceedings u/s 153A r.w.s 153C of the Income Tax Act, 1961; hereinafter referred to as ‘the Act’.

Heard both the parties. Case files perused.

It transpires during the course of haring that the assessee raises his first and foremost legal ground challenging validity of the impugned section 153C assessments all dated 12.03.2024 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 assessee recorded his satisfaction on 23.06.2022; which, in turn, was forwarded to the assessee’s Assessing Officer followed by his latter round of satisfaction recorded on 04.11.2022(pages 318 to 319 in the paperbook).

The assessee’s vehement contention in this factual backdrop is that its learned Assessing Officer has failed to record any categoric satisfaction that the alleged seized documents forming basis to proceed in its case had a “bearing” on determination of its taxable income which forms a mandatory provision as per 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 153C 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 in very terms.

All other pleadings between the parties on merits stand rendered academic.

These assessee’s seven appeals ITA Nos. 7733 to 7739/Del/2025 are allowed. A copy of this common order be placed in the respective case files.