NIRVAZA ENTERPRISES PRIVATE LIMITED,DELHI vs. ASSIST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-29, DELHI

ITA 5886/DEL/2024Status: DisposedITAT Delhi12 December 2025AY 2017-18Bench: SHRI SUDHIR KUMAR (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)16 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer failed to record proper satisfaction before initiating proceedings under Section 153C, as required by law. Consequently, the assessment orders passed under Section 153C were quashed.

What were the facts?

The assessee company was considered a shell company used for providing accommodation entries. Proceedings under Section 153C were initiated based on a search conducted in a group case, but the satisfaction note for initiating these proceedings was found to be inadequate.

What were the issues?

The primary issue was the validity of proceedings initiated under Section 153C due to improper satisfaction recorded by the Assessing Officer. The court also considered whether the seized material had a bearing on the assessee's total income for the relevant assessment year.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153D

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI

Before: SHRI SUDHIR KUMAR & SHRI MANISH AGARWAL

For Appellant: Shri Sudesh Garg, Adv.,Ms. Bhavya, Mr. Prince Bansal, CA
For Respondent: Shri Sanjay Kumar, CIT- DR
Hearing: 16.09.2025Pronounced: 12.12.2025

PER MANISH AGARWAL, AM: These two appeals are filed by the Assessee against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-25, New Delhi, (‘the CIT(A)’ in short) both are dated 16.09.2025 passed u/s 250 of the Income Tax Act, 1961 in Appeals No. 10428/2016-17 and 10228/2017-18 against the assessment orders passed u/s 143(3) of the Act for Assessment Years 2017-18 and 2018-19 respectively.

2.

Before us, both the parties have made submissions for AY 2017-18 and it is admitted that the issues are common in both the assessment years. Theref

The order continues below.

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