ALLEN PETROCHEMICALS PVT. LTD.,MEERUT vs. DCIT, CENTRAL CIRCLE, MEERUT, MEERUT
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)-3,
Noida’s
DIN
&
order
No.
ITBA/APL/M/250/2025-26/1076842849(1) dated 09.06.2025, in proceedings u/s 153C r.w.s. 144 of the Income Tax Act, 1961. 2. Case called twice. None appears at the assessee’s behest.
The assessee/appellant had also not put in appearance in the previous hearing as well. We thus proceeded ex-parte against the assessee.
Mr. Das vehemently argues that both the lower authorities have rightly made section 69C r.w.s. 115BBE of the Act, Allen Petrochemicals Pvt. Ltd.
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unexplained expenditure addition representing assessee’s cash payments to the searched party, in the assessment order dated
26.03.2024 as upheld in the lower appellate discussion.
We have given our thoughtful consideration to the assessee’s and the Revenue’s respective stands all along. Suffice to say, the learned departmental authorities had carried out a search in M/s Blomstrende Buildwell Pvt. Ltd. group of cases on 15.01.2021. This followed the centralization of the assessee’s case(s) as well. And that the learned Assessing Officer then recorded section 153C satisfaction followed by his notice dated 02.01.2024 which finally culminated in the impugned assessment framed forming subject matter of adjudication before us.
We further notice that the learned Assessing Officer had himself made it clear at page 2 in para 3 of the assessment order that the seized diary and various loose sheets found/seized during the course of search in M/s Sunny Chemical Pvt. Ltd. and the information contained therein “belongs to” M/s Allen Petrochemicals Pvt. Ltd. and has bearing upon the determination of it’s total income. That being the case, we invited the Revenue’s attention to section 153C(1)(a)(b) wherein the legislature has incorporated the clinching statutory Allen Petrochemicals Pvt. Ltd.
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expression of “belongs to”
for any money, bullion, jewellery......than such seized documents and loose sheets etc.
covered under the latter clause. This tribunal’s recent learned co-ordinate bench in Prashant Premchand Bafana Vs. ACIT
IT(SS)A No. 119 & 120/Pun/2022 decided on 08.04.2025 has already settled the issue in the assessee’s favour and against the department that satisfaction recorded u/s 153C could not treat such books of account or documents as “belongs to” a third person after the legislative amendment therein vide
Finance Act, 2015 w.e.f. 01.06.2015. We adopt the very analogy herein-as-well mutatis mutandis to quash the learned
Assessing Officer’s assessment dated 26.03.2024 in very terms.
All other remaining pleadings between the parties stand rendered academic.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 09/12/2025. (Manish Agarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 09/12/2025 *Subodh Kumar, Sr. PS*