TaxTMI 
TaxTMI 
2026 (8) TMI 749
X X X X Extracts X X X X
X X X X Extracts X X X X
....te of order 9037/Del/25 2009-10 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 11157, 11165, 11147/CIT(A)-3/Ggn/16-17 & 10371/CIT(A)-3, Ggn/17-18 Dated 10.11.2025 DCIT, Central Circle-1, Gurgaon Dated 29.03.2016 9038/Del/25 2010-11 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 11157, 11165, 11147/CIT(A)-3/Ggn/16-17 & 10371/CIT(A)-3, Ggn/17-18 Dated 10.11.2025 DCIT, Central Circle-1, Gurgaon Dated 29.03.2016 9039/Del/25 2011-12 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 11157, 11165, 11147/CIT(A)-3/Ggn/16-17 & 10371/CIT(A)-3, Ggn/17-18 Dated 10.11.2025 DCIT, Central Circle-1, Gurgaon Dated 29.03.2016 9042/Del/25 2012-13 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 11157, 11165, 11147/CIT(A)-3/Ggn/16-17 & 10371/CIT(A)-3, Ggn/17-18 Dated 10.11.2025 DCIT, Central Circle-1, Gurgaon Dated 29.03.2016 9043/Del/25 2013-14 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 11157, 11165, 11147/CIT(A)-3/Ggn/16-17 & 10371/CIT(A)-3, Ggn/17-18 Dated 10.11.2025 DCIT, Central Circle-1, Gurgaon Dated 29.03.2016 9046/Del/25 2014-15 CIT(A)-3, Gurgaon Appeal No. 11179, 11152, 11181, 1115....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gnised method of accounting for real estate projects for AY 2009-10 to 2013-14, and therefore no revenue was required to be recognised during the year. However, the Id. AO rejected the method followed by the assessee and estimated income by applying a rate of 20% on the advances received during the year. The other additions have been made on account of the allegation of unaccounted receipts and payment on the basis of alleged incriminating document, which as alleged by assessee are dumb documents and not related to the assessee. The CIT (A) has confirmed the addition and the assessee is in appeal before Hon'ble Tribunal. 2.5 In this context, the summary of the additions made in different years are as under: A.Y. 20% of Advances Received Unaccounted Receipts Unaccounted Payments 2009-10 51033110 - 300000 2010-11 64228050 51447080 3100000 2011-12 38111590 18428258 - 2012-13 45659055 53698400 - 2013-14 46257277 - - 2014-15 26594357 - - 2015-16 5668700 - - Total 227552139 123573688 3400000 3. Ld. Counsel has submitted that the order passed for all 7 assessment years (AY....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the case, the proceedings initiated under Section 153C of the Act and the consequent assessment order are bad and liable to be quashed in the absence of any valid satisfaction being recorded by the assessing officer of the assessee. 19. On the facts and circumstances of the case, the assumption of jurisdiction under section 153C is invalid, illegal, unsustainable and liable to be quashed, as the satisfaction note has been recorded by the Assessing Officer of the assessee collectively for Assessment Years 2008-09 to 2014-15, without identifying or linking alleged material to any specific Assessment Year. 20. On the facts and circumstances of the case, the satisfaction recorded by the Assessing Officer under section 153C does not refer to any seized material, much less any incriminating material, and thus the proceedings initiated are illegal, invalid, non est and hence unsustainable. 21. On the facts and circumstances of the case, the satisfaction recorded by the Assessing Officer for initiating proceedings under section 153C is illegal, invalid, mechanical in nature and has been recorded without application of mind. 22. On the facts and circum....
X X X X Extracts X X X X
X X X X Extracts X X X X
....action note has been recorded by the Assessing Officer of the assessee collectively for Assessment Years 2008-09 to 2014-15, without identifying or linking alleged material to any specific Assessment Year. 19. On the facts and circumstances of the case, the satisfaction recorded by the Assessing Officer under section 153C does not refer to any seized material, much less any incriminating material, and thus the proceedings initiated are illegal, invalid, non est and hence unsustainable. 20. On the facts and circumstances of the case, the satisfaction recorded by the Assessing Officer for initiating proceedings under section 153C is illegal, invalid, mechanical in nature and has been recorded without application of mind. 21. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming the order passed by the AO under section 153A(1)(b) of the Act despite the same is illegal and void-ab initio in the absence of any search initiated under section 132 of the Income Tax Act in the name of the assessee." Additional Ground for AY: 2012-13: "17. On the facts and circumstances of the case, the proceedi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the proceedings initiated are illegal, invalid, non-est and hence unsustainable. 17. On the facts and circumstances of the case, the satisfaction recorded by the Assessing Officer for initiating proceedings under section 153C is illegal, invalid, mechanical in nature and has been recorded without application of mind. 18. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming the order passed by the AO under section 153A(1)(b) of the Act despite the same is illegal and void-ab initio in the absence of any search initiated under section 132 of the Income Tax Act in the name of the assessee." Additional Ground for AY: 2014-15: "14. On the facts and circumstances of the case, the assessment order passed under section 143(3) of the Act is illegal, invalid and without jurisdiction, and is liable to be quashed, inasmuch as the mandatory provisions of section 153C of the Act have not been complied with. 15. Without prejudice to the above, the proceedings initiated and the consequent assessment order are bad and liable to be quashed in the absence of any valid satisfaction under section 153C be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....udgement in the case of CIT 14Vs. Jasjit Singh, [2023] 458 ITR 437 (SC), dated 26.09.2023 4.1 In regard to this issue ld. Counsel has also demonstrated that extended period of 10 years is not applicable as search has been not been initiated on or after 01.04.2017 thus the extended block period of ten assessment years, as contemplated under the amended provisions of Section 153A/153C of the Act by Finance Act, 2017, is not applicable in the present case, as the said extended period has been made effective only in respect of search actions initiated on or after 01.04.2017. In the instant case, the search has admittedly been conducted on 05.02.2014, and deemed date of search i.e., 23.02.2016, both of which are prior to the said cut-off date .Accordingly, the provisions relating to the extended period of ten years have no application to the facts of the present case. 4.2 Consequently, the assumption of jurisdiction and issuance of notice under section 153C as well as the assessment framed pursuant thereto for AY 2009-10 is without jurisdiction, bad in law and deserves to be quashed. 5. In regard to Assessment order for AY 2014-15 and AY 2015-16 passed u/s 143(3)/144 of the Act....
X X X X Extracts X X X X
X X X X Extracts X X X X
....IRCLE-9 (1), NEW DELHI, 2020 (1) TMI 85 - ITAT DELHI, Dated: - 31.12.2019. ● ITAT Delhi in the case of SHRI JAGJIT SINGH v. ACIT, CENTRAL CIRCLE 21, NEW DELHI, 2019 (10) TMI 350 - ITAT DELHI, dated: - 01.10.2019 ● Hon'ble Delhi High Court in the case COMMISSIONER OF INCOME TAX-14 VERSUS SHREE JASJIT SINGH, 2015(8) TMI TMI - DELHI HIGH COURT, Dated. - August 11, 2015. 5.1 In view of the above the assessments framed under section 143(3) of the Act for AY 2014-15 and AY 2015-16, which was otherwise required to be framed under section 153C of the Act are not sustainable and therefore liable to be quashed. 6. Assessment order for AY 2013-14 is a completed assessment year and settled law is that no addition can be made in the absence of any incriminating material. The return for AY 2013-14 was filed on 29.03.2013. As observed above, pursuant to search action on 05.02.2014, satisfaction u/s 153C has been recorded and notice u/s 153C has been issued on 23.02.2016 in the case of assessee. Thus, the deemed date of search in the case of assessee shall be 23.02.2016. On this deemed date of search, the time-limit to issue notice u/s 143(2) of the Act for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding separate and year-specific satisfaction has not been complied with, the very assumption of jurisdiction under section 153C of the Act is illegal, invalid and void ab initio, and consequently, all proceedings and assessment orders framed there under deserve to be quashed. 8. Further the satisfaction note makes it apparent that there is no reference of any seized material to vest jurisdiction with ld. AO for proceeding under section 153C of the Act. The assumption of jurisdiction under section 153C of the Act can only be sustained if the satisfaction note makes determinative reference to seized material and findings that same having bearing on the determination of income for the impugned assessment years. A patent reading of the Satisfaction Note shows that the entire basis of proceedings rests only on the alleged disclosure of surrendered income made by the assessee group vide letters dated 12.03.2014 and 17.03.2014. The Ld. AO has merely recorded a mechanical satisfaction to the effect that since a disclosure has been made in the case of the assessee, proceedings under section 153C are warranted. There is no reference whatsoever to any seized material, much less any incrimi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....afts. The Hon'ble Delhi High Court in the case of Shiv Kumar Nayyar in 2024(6) TMI 29, dated 15.05.2024, has held that the approval u/s 153D of the Act has to be granted for each Assessment year independently. Then in the case of Shri Deeraj Chaudhary Versus Assistant Commissioner of Income Tax, CC-8, Delhi, 2025(9) TMI 1372, dated 12.09.2025, wherein this issue was referred to the consideration of Hon'ble Third Member, too it is held that approval if granted in a manner showing non-application of mind, same will vitiate the assessments. 10. Consequently we are inclined to sustain the corresponding additional grounds and ground no. 6. The appeals are allowed. The impugned assessments are quashed. Order pronounced in the open court on 17.07.2026 ============= Document 1 Name of the Assessee Address of the Assessee Assessment Year PAN Status M/s Antriksh Engineers & Builders (P) Ltd. : 34/C-8, Sector-8, Rohini : New Delhi- 110085 : 2008-09 to 2014-15 AAFCA3020J : : Company Reasons/Satisfaction note for taking up the case of M/s Antriksh Engineers & Builders (P) Ltd., 34/C-8, Sector-8, Rohini, New Delhi. u/s 153C of the Income Tax Act. 1961. By ....