KANCHANJUNGA POWER COMPANY PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI

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ITA 2662/DEL/2025Status: DisposedITAT Delhi15 October 2025AY 2019-20Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal (Accountant Member)2 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that no additions were made based on any seized material. Therefore, the Revenue's request for adjournment was rejected, and the assessee's appeal was accepted on its merits.

What were the facts?

The assessee's appeal for Assessment Year 2019-20 arose against an order passed under Section 153C r.w.s. 153A of the Income Tax Act, 1961. The proceedings were initiated following a search conducted on 01.11.2019. The assessment culminated in disallowing expenditure under Section 37 of the Act.

What were the issues?

Whether additions made in Section 153C proceedings are valid when no seized material supports the additions. The validity of rejecting the Revenue's adjournment request.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 37

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Adv. (Virtual)
Hearing: 15.10.2025Pronounced: 15.10.2025

Asstt. Year: 2019-20 Kanchanjunga Power Company Pvt. Ltd. Vs DCIT, Reg. Add A-26/5, First Floor, Street No. Central Circle-31, 8, West Vinod Nagar, Delhi-110092 New Delhi-110055 (Correspondence Add. B-27, 3rd Floor, Sector-1, Noida-201301) (APPELLANT) (RESPONDENT) PAN No. AABCK9368H Assessee by : Sh. Upvan Gupta, Adv. (Virtual) Revenue by : Adjournment Application by CIT DR Date of Hearing: 15.10.2025 Date of Pronouncement: 15.10.2025 ORDER

Per Satbeer Singh Godara, Judicial Member:

1.

This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)-30, New Delhi’s DIN & order No. ITBA/APL/S/250/2024-25/1073629479(1) dated 24.02.2025, in proceedings u/s 153C r.w.s. 153A of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

Coming to the assessee’s instant appeal, we note at the outset that the learned departmental authorities had conducted the search in question dated 01.11.2019 in M/s DNC Group of casesleading to initiation of Section 153C proceedings vide the Kanchanjunga Power Company Pvt. Ltd. Assessing Officer’s satisfaction/notice dated 12.10.2021 which finally culminated his assessment framed on 27.05.2022 disallowing the expenditure in question u/s 37 of the Act. There could be hardly any dispute that we are dealing with an “unabated” assessment as on the date of search which is the date of satisfaction u/s 153C(1) 1st proviso wherein any additions has to be made in the assessee’s hands based on the specific seized material only as per PCIT Vs. Abhisar Builwell P. Ltd. (2023) 454 ITR 212 (SC).

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