SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

We notice at the outset during the course of hearing that the assessee/appellant herein is aggrieved against both the learned lower authorities’ action inter alia framing section 153C r.w.s. 143(3) assessments dated 30.03.2023, in furtherance to the search action dated 16.10.2019 in Navin Mahipal group of cases etc.

That being the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest.

Learned counsel representing assessee on the other hand seeks to raise various legal arguments inter alia going to root of the matter i.e. alleged improper recording of section 153C satisfaction and other related issues. The fact however remains that the corresponding “substantive” assessments are still stated to be pending before the learned CIT(A) as fairly to 3952/Del/2025 Sandeep informed by both the parties. We therefore deem it appropriate in the larger interest of justice to observe that all these “protective” assessments must await the final outcome of the substantive appeals which are pending before the learned CIT(A) in order to avoid multiplicity of proceedings and mutually contradictory findings; as the case may be. We thus deem it appropriate in the larger interest of justice to restore the assessee’s instant appeals back to the learned CIT(A) for his afresh appropriate adjudication after awaiting the final outcome of the corresponding substantive assessments; as per law. Ordered accordingly.

All other legal issues as well as those on merits between the parties are kept open at this stage.