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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2021-22, arises against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)/NFAC”], Delhi-26 order dated 19.09.2025 passed in DIN & Order No. ITBA/NFAC/S/250/2025-26/1080922303(1), involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
Learned counsel submits at the outset that the assessee wishes to press his first and foremost legal ground/ argument challenging validity of the impugned section 143(3) assessment order dated 04.02.2023 itself. This is for the precise reason that the learned departmental authorities admittedly appear to have carried out the section 132 search including the assessee on 17.11.2021. The assessee’s case in this factual backdrop is that since the impugned assessment year A.Y. 2021-22 is very well covered under the clinching statutory expression of “three assessment years immediately preceding the assessment year relevant to the previous year in which the search is initiated”, the learned lower authorities could not have proceeded to frame only a “regular” assessment in his case in assessment year A.Y. 2021-22 going by the aforesaid date of search. And that the only option available to them so to proceed against him u/s 147 of the Act as held in (2026) 182 taxmann.com 11 (Del) Montage Enterprises (P) Ltd. vs DCIT and other various judicial precedents to this effect.
Faced with this situation, we find merit in the assessee’s instant first and foremost legal ground to reject the Revenue’s vehement contentions supporting the impugned section 143(3) assessment dated 04.02.2023 framed in his hands to quash the same in very terms.
All other remaining pleadings between the parties on merits stand rendered academic.
This assessee’s appeal is allowed.