SAHIL GARG,DELHI vs. ASSTT. CIT, JHANDEWALAN, DELHI

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ITA 771/DEL/2026Status: DisposedITAT Delhi07 August 2026AY 2018-197 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Section 153C assessments were invalid because the seized material did not pertain to the relevant assessment years. Relying on a jurisdictional High Court decision, the Tribunal stated that a common satisfaction note without incriminating material for the specific assessment year vitiates the proceedings.

What were the facts?

The Income Tax Appellate Tribunal heard appeals concerning assessment years 2017-18 and 2018-19, which were initiated under Section 153C of the Income Tax Act. The search operation was conducted on a group of cases on December 7, 2018.

What were the issues?

The primary issue was the validity of assessments framed under Section 153C when the seized material did not relate to the assessment years in question.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI SANJAY AWASTHI

For Appellant: CA (Virtual)
Hearing: 30.06.2026Pronounced: 07.08.2026

Heard together (2 matters)

ITA No. 771/Del/2026
ITA No. 772/Del/2026

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 771/Del/2026; Assessment Year: 2018-19 ITA No. 772/Del/2026; Assessment Year: 2017-18

Sahil Garg, Vs Assistant Commissioner of C-8/12, Sector-7, Rohini, Income Tax, Central Circle- Delhi- 110085 8, Jhandewalan Extension, Delhi- 110055 (APPELLANT) (RESPONDENT) PAN No. AJMPG9831E Assessee by: Sh. Pramod Jain, CA (Virtual) Sh. Mukul Gupta, Adv. Revenue by : Sh. Bhopal Singh, CIT DR Date of Hearing: 30.06.2026 Date of Pronouncement: 07.08.2026

ORDER PER BENCH: These assessee’s twin appeals for assessment years 2017-18 & 2018- 19, arise against Commissioner of Income Tax (Appeals)-24 [in short, the “CIT(A)”], New Delhi’s orders dated 18.11.2025, passed in DINs & order Nos. ITBA/APL/M/250/2025-26/1082709521(1) & ITBA/APL/M/250/2025- 26/1082708924(1), involving proceedings under section 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively. Heard both the parties. Case files perused. 2. We advert to the assessee’s first and foremost legal ground/argument herein challenging validity of the impugned section 153C assessments framed for assessment years A.Y. 2017-18 and 2018-19 itself. There is hardly any dispute between the parties that the learned departmental authorities had carried out the search in question in M/s H S Impex & Other Group of cases on 07.12.2018. There is further no quarrel that the learned Assessing Officer i.e. the Deputy Commissioner of Income Tax, Central Circle-02, New Delhi, is common for both the aforesaid searched party as well as the assessee. His satisfaction note dated 11.01.2022 forms part of the case records at pages 19 to 20 in the assessee’s paperbook before us. He has further placed on record the corresponding incriminating material “KPJ-01-A-8” at pages 21 to 30 before us as well.

3.

We notice in this factual backdrop that the learned Assessing Officer had recorded his common section 153C satisfaction for assessment years 2013-14 to 2019-20 that the assessee’s receipts in the diaries read the corresponding figures of Rs. 1,62,085/- (for A.Y. 2016-17) & Rs. 13,33,800/- (for A.Y. 2017-18) respectively. A perusal of the aforesaid seized material however indicates that the same nowhere pertain to the impugned twin assessment years i.e. A.Y. 2017-18 & 2018-19 before us. Faced with this situation, we quote hon’ble jurisdictional high court’s recent decision in Saksham Commodities Limited Saksham Commodities Ltd. Vs. ITO (2024) 464 ITR 1 (Delhi)(HC) that such a common satisfaction note; in absence of any incriminating material for the relevant assessment year, vitiates the impugned proceedings itself; as under: 2 | P a g e “

3 | P a g e 4 | P a g e 5 | P a g e

4.

This clinching factual position has gone unrebutted from the Revenue side. We accordingly are of the considered view that both these impugned

6 | P a g e section 153C assessment framed in the assessee’s hands for assessment year 2017-18 & 2018-19 are not sustainable in law. Quashed in very terms therefore. All other remaining pleadings between the parties on merits stand rendered academic.

5.

These assessee’s twin appeals ITA Nos. 771 & 772/Del/2026 are allowed. A copy of this common order be placed in the respective case files.

Order pronounced in the open court on 07.08.2026 .

Sd/- Sd/- (SANJAY AWASTHI) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 07.08.2026 *Pooja Mittal, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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