GAURAV RAKHECHA,NEW DELHI vs. ACIT CC-13 JHANDEWALAN, NEW DELHI

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ITA 4369/DEL/2024Status: HeardITAT Delhi29 July 2026AY 2021-225 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the date of recording the satisfaction note or receipt of records by the AO of the non-searched person is the relevant date for determining the 'deemed date of search'. In this case, the deemed date of search was 19.09.2022, rendering the assessment under Section 153C invalid.

What were the facts?

The assessee's assessment orders were passed under Section 153C read with Section 143(3) of the Income Tax Act. The assessee argued that since the material was handed over to their AO on 19.02.2022, the deemed search year falls after 01.04.2021, making Section 153C inapplicable.

What were the issues?

Whether the assessment completed under Section 153C is valid when the deemed date of search, based on the handing over of documents to the non-searched person's AO, falls after the prescribed cut-off date for the applicability of Section 153C?

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3),Section 147,Section 153(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA

For Appellant: Adv. Sh. Jaind Kumar Jaiswal, Adv
Hearing: 01.06.2026Pronounced: 29.07.2026

PER ANUBHAV SHARMA, JM:

These appeals preferred by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-26, New Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in

P a g e | 2 ITA Nos. 4364 to 4369/Del/2024 Gaurav Rakhecha (AYs: 2015-16, 2017-18 to 2021-22) appeals filed before him against the orders of the ld. Assessing Officer

(hereinafter referred to as the Ld. AO, for short) passed u/s 153C r.w.s

143(3) of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’).

Further details of the orders of the lower authorities are as under: -

ITA No. & Ld. FAA who passed Appeal No. & Date of AO who passed the AY the appellate order order of the Ld. FAA assessment order & Date of order 4364/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2015-16 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067047082 (1) Dated 29.12.2023 Dated: 24.07.2024 4365/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2017-18 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067046483(1) Dated 30.12.2023 Dated: 24.07.2024 4366/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2018-19 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067045412(1) Dated 30.12.2023 Dated: 24.07.2024 4367/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2019-20 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067044698(1) Dated 29.12.2023 Dated: 24.07.2024 4368/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2020l-21 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067043987(1) Dated 30.12.2023 Dated: 24.07.2024 4369/D/24 CIT(A)-26 DIN & Order No : ACIT, CC- 13 2021-22 New Delhi ITBA/APL/M/250/2024 New Delhi -25/1067025635(1) Dated 29.12.2023 Dated: 24.07.2024

2.

On hearing both sides we find that the issue involved in the appeals

is a legal issue raised by the assessee alleging that the impugned

assessment orders are vitiated as the assessment have been completed u/s

143(3) r.w.s 153C, however same should have been passed u/s 148 of the

P a g e | 3 ITA Nos. 4364 to 4369/Del/2024 Gaurav Rakhecha (AYs: 2015-16, 2017-18 to 2021-22) Act as the material was handed over to the AO of the assesse, who is a non-searched person, on 19.02.2022 and therefore, the deemed search year falls after 1.04.2021 and thus, the provisions of Section 153C would not be applicable by virtue of Section 153C(3) of the Act and reliance in this regard was placed on the decision of Hon’ble Madras High Court in the case of Harigovind Vs. ACIT (2025) 180 taxmann.com 197 (Mad).

3.

Ld. DR has however, contended that the contentions are devoid of any merit as the search was conducted on 23.03.2021 in Ballar Marketing Group and handing over of the seized documents and satisfaction note for initiation of proceeding u/s 153C of the Act is only a procedural requirement and that does not change the year of search for the purpose of assumption of jurisdiction u/s 153C.

4.

We have considered the rival contention and there is no dispute to the fact on the basis of copy of letter dated 19.09.2022 placed on record that vide its letter F.No. DCIT/CC-13/153C/2022-23/646, DCIT, CC-13, New Delhi, had forwarded the seized documents and satisfaction note to ITO, Ward 50(1), Delhi, the AO of assessee, for initiation of proceedings u/s 153C of the Act in the case of assesse.

P a g e | 4 ITA Nos. 4364 to 4369/Del/2024 Gaurav Rakhecha (AYs: 2015-16, 2017-18 to 2021-22) 5. The law in this regard is now settled that in case of non searched person it the date of recording satisfaction note or receipt of record, the date of searched is to be construed and reliance is placed on Hon’ble Supreme Court decision in the case of CIT v. Jasjit Singh [2023] 458 ITR 437 (SC) and Hon’ble Jurisdictional High Court decision in Pr. CIT (Central-1) v. Ojjus Medicare (P.) Ltd. [2024] 161 taxmann.com 160/465 ITR 101 (Delhi), where Hon’ble High Court has further expanded the proposition and held that where the date of handing over of documents is not available, date of issuance of satisfaction note by the Assessing Officer under section 153C would be pertinent for the purpose of first proviso to section 153C.

6.

Thus in case of present assessee the deemed date of search shall be 19.09.2022, and thus by virtue of Section 153(3) of the Act, the assessment could not be completed u/s 153 of the Act, but could have been by way of proceedings u/s 147 of the Act, and a co-ordinate bench, in which one of us, the Judicial Member was on Bench, in case of Smt. Geetanjali Bhayana, Versus DCIT, Central Circle-32, New Delhi vide ITA No.2227, 2228 & 2252/Del/2025, order dated 27.01.2026 by while taking in consideration decision of Hon’ble Madras High Court in Harigovind

P a g e | 5 ITA Nos. 4364 to 4369/Del/2024 Gaurav Rakhecha (AYs: 2015-16, 2017-18 to 2021-22) (Supra) has quashed the assessment concluded u/s 153C of the Act. Reliance for this is also placed on Rakesh Goel, Jaipur vs DCIT, CC-25, Delhi decided on 15 July, 2026 vide ITA Nos.- 1772 to 1778/DEL/2026.

7.

We thus sustain the corresponding ground no. 2, and allow the appeals. The impugned assessments are quashed.

Order pronounced in the open court on 29.07.2026

Sd/- Sd/- (Amitabh Shukla) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 29.07.2026 Rohit, Sr. PS

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