COBOL TECHNOLOGIES P.LTD,NEW DELHI vs. ACIT, CENTRAL CIRCLE-18, NEW DELHI

Heard both the parties at length. Case file perused.

It emerges during the course of hearing that there arises the first and foremost issue of validity of the impugned section 153C r.w.s. 143(3) assessment dated 28.12.2017 cash credits, in the assessee’s hands and upheld in the CIT(A) lower appellate discussion. Cobol Technologies Pvt. Ltd. 2 4. We now advert to the basic relevant facts. This assessee is a company who had filed its return on 28.09.2014 declaring business loss of Rs.48,222/- which stood summarily processed. The department next appears to have carried out a search dated 27.02.2015 in case of Sh. Ratul Puri Group and came across the alleged incriminating material Annexure A-1 at page 36 thereof stated to be belonging to the assessee. This made the Assessing Officer to record his section 153C satisfaction against the assessee which culminated in the impugned addition made in it’s hands, in the assessment framed on 28.12.2017. 5. Faced with this situation, learned CIT-DR could hardly dispute the clinching fact that hon’ble apex court recent decision in PCIT vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC) has settled the law in assessee’s favour and against the department that any addition in an “unabated” assessment has to be based on the specific seized material only. And that section 153C(1) first proviso as interpreted by hon’ble juri ictional high court in CIT Vs. RRJ Securities Ltd. (2016) 380 ITR 0612, PCIT vs. Jasjit Singh (2024) 336 CTR 634 (Delhi) and PCIT vs. Ojjus Medicare Pvt. Ltd & Ors, ITA No. 52/2024 dated 03.04.2024, has settled the issue that the date of search in such an instance is the date of recording of the corresponding satisfaction only. We wish to reiterate here that Cobol Technologies Pvt. Ltd. 3 the impugned assessment year 2013-14, counted as on the date section 153C satisfaction dated 27.10.2016, indeed becomes an “unabated” one; and, therefore, once the learned lower authorities have not referred to any specific seized material indicating unexplained cash credits, the assessment herein deserves to be quashed. Ordered accordingly.

All other pleadings on merits herein stand rendered academic.

This assessee’s appeal is allowed. Order Pronounced in the Open Court on 25/04/2025. (M. Balaganesh) (Satbeer Singh Godara) Accountant Member Judicial Member