MMR SAHA INFRASTRUCTURE PRIVATE LIMITED,DELHI vs. DCIT, CC-6, DELHI

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ITA 1742/DEL/2026Status: DisposedITAT Delhi10 July 2026AY 2015-166 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 satisfaction note was not in accordance with law as it did not specify how the incriminating material had a bearing on the determination of the total income for each assessment year. Therefore, the assumption of jurisdiction under Section 153C was vitiated.

What were the facts?

The appeals were filed against assessment orders passed under Section 153C of the Income Tax Act, 1961, following a search on the Ashish Begwani group. The Assessing Officer (AO) initiated proceedings based on a satisfaction note dated March 24, 2021.

What were the issues?

Whether the satisfaction note recorded by the AO for assuming jurisdiction under Section 153C was valid and specific to each assessment year based on incriminating material.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

For Appellant: Adv. Sh. Ayush Garg, CA, Ms. Kanishka Garg, CA
Hearing: 06.07.2026Pronounced: 10.07.2026

PER ANUBHAV SHARMA, JM:

These appeals preferred by the different Assessee against the order of the Ld. CIT(A)-24,New Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in 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 1741/D/26 CIT(A)-24 DIN & Order No DCIT, CC-06 2015-16 Delhi :ITBA/APL/M/250/2025- New Delhi 26/1085127626(1) Dated 30.12.2021 Dated 23.01.2026 1742/D/26 CIT(A)-24 DIN & Order No DCIT, CC-06 2015-16 Delhi :ITBA/APL/M/250/2025- New Delhi 26/1085123581(1) Dated 30.12.2021 Dated 23.01.2026

P a g e | 3 ITA Nos.1741 & 1742/Del/2026 M/s MMR Infrastructure Developers Pvt. Ltd. & M/s MMR Saha Infrastructure Pvt. Ltd. (AY; 2015-16) 2. Heard and perused The cases of these two assesse which is part of same group were heard together and as they involves similar question of facts and law and the same are being adjudicated together and wherever relevant facts of ITA No. 1741/Del/2026 in the case of M/s MMR Infrastructure Developers Pvt. Ltd. shall referred.

3.

In the present cases proceedings u/s 153C of the Act have been initiated pursuant to search conducted on 22.10.2016 in the case of Ashish Begwani group based on the satisfaction note date 24.03.2021 as reproduced in the assessment orders. The case of ld. Counsel for assesse is that the same satisfaction note which is given for multiple assessment year is a consolidated satisfaction note and has been subject of judicial scrutiny by Coordinate Benches and the same has been held to be not in accordance with law.

4.

Though ld. DR submitted that satisfaction note is complete in all receipts and only prima facie facts have to be mentioned and there is no requirement of discussion of all the incriminating material. We find from the satisfaction note as reproduced in the assessment order that the satisfaction note mentions that for Assessment Year 2011-12 to 2017-18 jurisdiction u/s 153C of the Act is assumed and as with regard to alleged

P a g e | 4 ITA Nos.1741 & 1742/Del/2026 M/s MMR Infrastructure Developers Pvt. Ltd. & M/s MMR Saha Infrastructure Pvt. Ltd. (AY; 2015-16) incriminating evidences the assessing officer observes that the same were as follows:

“Contains list of excel sheet containing accommodations entries facilitated by Sh. Ashish Begwani. It features the name of MMR Infrastructure Developers Pvt. Ltd. as beneficiary of accommodation entry.”

4.

On thorough examination of the satisfaction note it is apparent that the content of excel sheet have not been reproduced or its substance mentioned to show as to how the satisfaction was recorded with regard to these material having bearing on the determination of the total income of the assesse for the years under consideration for which the jurisdiction u/s 153C has been invoked. It is settled that satisfaction u/s 153C of the Act must be recorded with reference to each assessment year on the basis of incriminating material having bearing on the determination of the total income of that assessment year, failing which the assumption of jurisdiction is unsustainable and reliance in this regard is placed on the decision of Hon’ble Delhi High Court in Saksham Commodities Limited & Others Vs. ITO &Anr. 2024 (4) TMI 461 (Delhi HC) dated 09.04.2024. Ld. Counsel has also drawn our attention to decision in the case Parsee Leasing and Finvest Limited Vs. ACIT, ITA No. 3556/Del/2025, dated 25.03.2026; ITAT Delhi in Sunwhite Realty Pvt. Ltd. Vs. DCIT, CC-6,

P a g e | 5 ITA Nos.1741 & 1742/Del/2026 M/s MMR Infrastructure Developers Pvt. Ltd. & M/s MMR Saha Infrastructure Pvt. Ltd. (AY; 2015-16) ITA No. 9135/Del/2025, dated 30.06.2026; ITAT Delhi in Vinay Homes Pvt. Ltd. Vs. DCIT CC-6, New Delhi, ITA No. 2459/Del/2025, dated 06.02.2026 & ITAT Delhi in KuldeepSaluja Vs. DCIT, CC-6, New Delhi, ITA No. 2460/Del/2025, dated 06.02.2026 wherein the same satisfaction note has been subject of judicial scrutiny and the Coordinate Benches have not found the same to be in accordance with law.

5.

In the light of aforesaid we are inclined to allow corresponding grounds The assumption of jurisdiction being vitiated the consequent assessment and the impugned order are liable to be quashed and accordingly appeals are allowed and impugned assessment order are quashed.

Order pronounced in the open court on 10.07.2026

Sd/- Sd/- (Sanjay Awasthi) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 10.07.2026 Rohit, Sr. PS

P a g e | 6 ITA Nos.1741 & 1742/Del/2026 M/s MMR Infrastructure Developers Pvt. Ltd. & M/s MMR Saha Infrastructure Pvt. Ltd. (AY; 2015-16) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

ITAT NEW DELHI

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