ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-25, DELHI, DELHI vs. POOJA GUPTA, DELHI

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ITA 8965/DEL/2025Status: DisposedITAT Delhi20 May 2026AY 2015-163 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to quash the assessment orders. This was based on the AO's failure to record satisfaction that the escaped income would exceed Rs. 50 lakhs, a prerequisite for initiating action under Section 153C for extended periods.

What were the facts?

The Revenue appealed against the CIT(A)'s orders which quashed assessment orders passed under Section 153C. The original assessment orders were challenged by the assessee via writ petitions before the Delhi High Court.

What were the issues?

Whether the AO's satisfaction note adequately demonstrated that the escaped income was likely to exceed Rs. 50 lakhs, as required by the Fourth Proviso to Section 153A for initiating action under Section 153C.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : A : NEW DELHI

Before: MS. MADHUMITA ROY

For Appellant: Shri Saksham Garg, CA &, Shri Shahrukh Khan, CA
For Respondent: Shri Sanjay Pandey, CIT-DR
Hearing: 23.03.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A : NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITAs No.8966 & 8965/Del/2025 Assessment Years: 2014-15 & 2015-16 ACIT, Vs Pooja Gupta, Central Circle-25, H-34, Ashok Vihar, Phase-I, Delhi. Delhi – 110 052. PAN: AFFPG7915Q (Appellant) (Respondent) Assessee by : Shri Saksham Garg, CA & Shri Shahrukh Khan, CA Revenue by : Shri Sanjay Pandey, CIT-DR Date of Hearing : 23.03.2026 Date of Pronouncement : .05.2026

ORDER PER MADHUMITA ROY, JM:

The instant appeals filed by the Revenue are directed against the orders dated both 30.09.2025 passed by the ld. Commissioner of Income-tax (Appeals)- 25, New Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the assessment orders both dated 28.02.2024 passed by the ACIT, Circle-25, New Delhi (hereinafter referred to as ‘the ld. AO’) under Section 153C of the Act for Assessment Years 2014-15 & 2015-16.

ITA No.8965 and 8966/Del/2025

2.

The assessee preferred two writ petitions against the order passed by the Ld. AO before the Hon’ble Delhi High Court for AY 2014-15 and 2015-16, which was disposed of by the common order dated 13.05.2024. It was observed that upon perusal of the satisfaction recorded by the Ld. AO, it appears that income which was alleged to have been escaped assessment ‘relevant assessment year’ does not exceed Rs.50 lakhs. Further that the Ld. AO has also failed to record its satisfaction that the escaped income is likely to exceed Rs.50 lakhs or more cumulatively for the ‘relevant assessment year’ and thereby fulfilling the threshold requirement as prescribed by the Fourth Proviso to Section 153A of the Act. In that view of the matter, the aforesaid satisfaction would have to be based on an assessment of material gathered and potentially of the same being indicative of the escapement exceeding Rs.50 lakhs. The formation of the opinion in this regard would have to be based not on mere ipse dixit but reflective of a fair assessment of the quantum of income likely to have escaped assessment as distinct from mere speculation and conjecture since the precondition of Rs.50 lakhs or more constitutes a sine qua non for initiating action for the extended ten years block, the aforesaid satisfaction and the reasons in support thereof would have borne out from the satisfaction note itself, as observed by the Hon’ble Supreme Court in the case of CIT vs Ojjus Medicare Private Limited, wherein the Hon’ble Supreme Court has been pleased to quash the impugned notice under Section 153C of the Act dated 16th March, 2023 for

ITA No.8965 and 8966/Del/2025

Assessment Years 2014-15 and 2015-16 in absence of alleged escapement of assessment likely to exceed Rs.50 lakhs in the relevant assessment year. 3. Having regard to this particular aspect of the matter, the Ld. First Appellate Authority by under its separate orders dated 30.09.2025 for both the years quashed the assessment order dated 28.02.2024 passed under Section 153C of the Act as the same failed to survive which in our considered opinion is found to be just and proper so as to not to warrant interference. 4. In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the open court on 20th May, 2026. Sd/- Sd/- (AMITABH SHUKLA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 20.05.2026. Dk/Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi

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