TaxTMI 
TaxTMI 
2026 (6) TMI 409
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....allenged the validity of assumption of jurisdiction u/s 153C of the Income-tax Act, 1961 (for short 'the Act'). 3. Brief facts of the case are, a search u/s 132 of the Act was conducted in the case of Alankit Group on 18.10.2019. Pursuant thereto, certain material was allegedly found and seized, on the basis of which proceedings u/s 153C were initiated in the case of the assessee. The Assessing Officer recorded satisfaction and issued notice u/s 153C on 23.01.2023. The ld. CIT(A) dismissed the challenge to the assumption of jurisdiction u/s 153C and upheld the assessment order. Against the order of CIT(A), the assessee is in appeal before is raising following concise grounds of appeal :- 1. That on the facts and circumstances of....
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....ground of commission expense 5. That on facts and circumstances of the case, the Ld. CIT(A) was not justified in upholding addition in respect of loan taken from M/s. JAR Metal Pvt Ltd.: a. Addition of Rs. 50,00,000/- u/s 68 in respect of loan b. Addition of Rs. 4,06,037/- u/s 69C in respect of claim of interest on loan c. Addition of Rs. 75,000/- u/s 69C on the notional ground of commission expense 6. That on the facts and circumstances of the case, the Ld. CIT(A) has erred into upholding the validity of the assessment order u/s 153C even though same is without valid requisite approval u/s 153D of the Act. 7. That the orders passed by lower authorities are not sustainable on facts and a....
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....ble to the assessee for the relevant assessment year. 7. On the other hand, ld. DR of the Revenue heavily relied on the findings of the lower authorities. 8. Considered the rival submissions and material available on record. We observed that he issue which arises for our consideration is whether the jurisdiction assumed u/s 153C of the Act is valid in law where the satisfaction note recorded by the Assessing Officer is common and does not identify any specific incriminating material qua the relevant assessment year. We observed that the Assessing officer has recorded following satisfaction note for issuance of notice u/s 153C :- 9. We further observed that it is a settled position of law that recording of satisfaction by the Assess....
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....ar is sine qua non for valid assumption of jurisdiction u/s 153C of the Act. Further, Hon'ble Delhi High Court in the case of Saksham Commodities Ltd. v. ITO [2024] 464 ITR 1 (Delhi) has distinctly held that the satisfaction recorded must be specific and must clearly indicate the incriminating material relatable to each assessment year, failing which the assumption of jurisdiction would be invalid. The Hon'ble High Court emphasized that a generalized or omnibus satisfaction, without reference to specific material and without establishing nexus with the income of the relevant year, cannot sustain proceedings u/s 153C. 12. We further observed that the assessee has further made reference to various decisions of Coordinate Bench which are fo....
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....ion and respectfully following the ratio laid down by the Hon'ble Supreme Court in Sinhgad Technical Education Society (supra) and the Hon'ble Delhi High Court in Saksham Commodities Ltd. v. ITO (supra), we are of the considered opinion that the satisfaction recorded by the Assessing Officer is defective, being common, vague and mechanical, and does not satisfy the mandatory requirements of section 153C of the Act. Consequently, the assumption of jurisdiction u/s 153C is invalid and unsustainable in law and accordingly, the notice issued u/s 153C and the consequent assessment order is hereby quashed. The Ground No. 1(b) and 1(c) are allowed. 15. As the assessment order has been quashed on the legal ground of jurisdiction, the other legal....