RATTAN PRAKASH MISHRA,FARIDABAD vs. IT0 WARD 2(2), FARIDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, A: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No.- 3347/Del/2026 [Assessment Year: 2012-13] Rattan Prakash Mishra, ITO, H. No. -457, Sector-2, Ward 2(2), Faridabad-121003. Vs Faridabad, Haryana-121001. PAN- AHMPM1041L Assessee Revenue Assessee by Shri Gurjeet Singh, CA Revenue by Ms. Pooja Swaroop, CIT(DR) Date of Hearing 23.07.2026 Date of Pronouncement 23.07.2026 ORDER Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order dated 26.08.2025 of the Commissioner of Income Tax,(Appeal)-3, Gurugram, [hereinafter referred to as the ‘Ld. CIT(A)] arising out of the Order dated 17/12/2019 passed under section 153C r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 2(2), Faridabad (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (A.Y.) 2012-13.

ITA No.- 3347/Del/2026 Ra�an Prakash Mishra 2. The assessee has raised the following grounds of appeal:

“1. Because the action for initiation, continuation and conclusion of assessment proceedings u/s 153C/143(3) at an assessed income of Rs 23,90,940/- is being challenged on facts and law. 2. Because the action is being challenged on facts & law for initiating proceedings u/s 153C being barred by limitation, falling beyond the period of six years from the date of recording of satisfaction note. 3. Because the action is being challenged on facts and law for making additions in assessment proceedings u/s 153C when there is none incriminating material/ document available with the AO. 4. Because the action for initiation of proceedings u/s 153C is unreasonable as where in the course of search carried out at premises of third person, certain documents were seized and on basis of same, proceedings u/s 153C were initiated against assessee, since AO of searched person failed to record satisfaction as to how said documents belong to assessee when the searched person not stated that the said documents belong to assessee. 5. Because the action for initiation of proceedings u/s 153C is unreasonable as there is non- application of mind much less independent application of mind by AO in recording satisfaction. Further, satisfaction note recorded by AO is vague, lacking tangible material/reasonable cause and justification. 6. Because the action is being challenged on facts and law for not providing reasonable opportunity of being heard. The assessment order being passed is in violation of the principle of natural justice and without giving adequate time and opportunity to the appellant to present the case. 7. Because the action is being challenged on facts and law for making addition of Rs. 6,75,000 considering payment of interest on loan (Protective basis) whereas per assessee when assessee has not taken loan from Elvi group of companies then there is none reason to pay the interest on loan. 8. Because the action is being challenged on facts and law for making addition of Rs. 15,00,000 considering payment of interest on loan is generated out of undisclosed sources whereas per assessee when assessee has not taken loan from Elvi group of companies then there is none reason to pay the interest on loan. Even quantum of addition is challenged. 9. For any consequential relief and/or legal claim arising out of this appeal and for any addition, deletion, amendment and modification in the grounds of appeal before the disposal of the same in the interest of substantial justice to the assessee..”

ITA No.- 3347/Del/2026 Ra�an Prakash Mishra

In view of the above, we are of the view that the delay in filing of appeal was due to Bonafide reasons and the same is, therefore, being condoned.

4.1 Aggrieved, the assessee preferred an appeal before the CIT(A). As no compliance was made by the assessee during appellate proceedings, the CIT(A) dismissed the appeal exparte vide order dated 26.08.2025.

4.2 Further aggrieved, the assessee has filed appeal before the Tribunal.

ITA No.- 3347/Del/2026 Ra�an Prakash Mishra 5. Before us, Ld. AR has submitted that case of the assessee was opened u/s 153C on account of certain documents found & seized during the course of search conducted on Elvi Group on dt. 28.02.2017. Satisfaction in this case was recorded on dt. 26.03.2019 and thereafter, notice u/s 153C r.w.s 153A was issued on dt. 26.03.2019 (Assessment Order Pg. 2 Para 2) after recording satisfaction i.e. in the AY 2019-20. Therefore, the period of six years from the purpose of section 153C related to AY 2013-14 to 2018-19. The assessment year under consideration being AY 2012-13 is beyond the period of six years referred in section 153C. Thus, AO has no jurisdiction to make an assessment of the assessee's income for the year under consideration. Further that as the amendment made to Section 153C would be applicable prospectively as clarified by CBDT Circular No.2/2018 dated 15.02.2018, the assessment order passed for the A.Y. 2012- 13 is, not within the purview of the Block period as the satisfaction was recorded on 26.03.2019 and thus illegal, void ab initio, barred by limitation and therefore, liable to be quashed.

5.1 Ld. DR, on the other hand has relied on the orders of the lower authorities.

ITA No.- 3347/Del/2026 Ra�an Prakash Mishra 7. In the result, appeal of the assessee is allowed.

Order pronounced in the open court on 23.07.2026

Sd/- Sd/-

[SATBEER SINGH GODARA] [RENU JAUHRI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 07.08.2026. Pooja. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi,