ARVIND NANDAGOPAL,CHENNAI vs. ACIT, CC-3(1),, CHENNAI

ITA 2273/CHNY/2024Status: DisposedITAT Chennai07 November 2025AY 2017-18Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI S.R.RAGHUNATHA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the Assessing Officer (AO) lacked jurisdiction to issue notices under Section 153C of the Income Tax Act. There was no material found during the search that related to the assessee or had a bearing on their total income, rendering the assessment order void.

What were the facts?

A search was conducted on M/s Binny Ltd. and M/s KLP Projects Pvt Ltd. During the search, it was gathered that M/s Binny Limited had advanced significant sums to seven concerns, which were later found to be bogus. The assessee, MD of M/s Binny Limited, stated these advances were made to generate unaccounted cash for company expenses.

What were the issues?

Whether the AO had valid jurisdiction under Section 153C to issue notices to the assessee based on materials found during a search of other entities. The validity of the assessment order passed under Section 153C was challenged.

Which sections of the Income-tax Act were involved?

Section 132,Section 131,Section 153C,Section 153A,Section 56(2)(vii),Section 143(1),Section 143(3),Section 132(4)

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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA

Hearing: 26.08.2025Pronounced: 07.11.2025

PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter referred

to as ‘Ld.CIT(A)‘), Chennai-20, all dated 29.06.2024 for the Assessment

Years (hereinafter referred to as ‘AY‘) 2014-15 to 2018-19. As the issues

involved across all these appeals were common, they were heard

t

The order continues below.

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