SADHVI EXIM LIMITED,LUCKNOW vs. DY. COMMISSIONER , NEW DELHI

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ITA 6068/DEL/2024Status: DisposedITAT Delhi30 September 2025AY 2017-18Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal (Accountant Member)3 pages
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What did the Tribunal hold?

The Tribunal held that the assessments were not sustainable in law as they were not based on any specific incriminating material found or seized during the search. A mere admission or confession during search, without supporting evidence, lacks significance as per CBDT circulars.

What were the facts?

The assessee's twin appeals concerned assessment years 2017-18 and 2018-19, arising from proceedings under Section 143(3) of the Income Tax Act. The appeals were initiated under Section 153C, culminating in assessments that added commission income from accommodation entries.

What were the issues?

Whether assessments based on Section 153C proceedings are sustainable without specific incriminating material found during search, relying solely on statement of searched person.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153C,Section 132

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Cases cited in this judgment(1)Show list

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

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

Hearing: 30.09.2025Pronounced: 30.09.2025

Heard together (2 matters)

ITA No. 6068/Del/2024
ITA No. 6109/Del/2024

Read from the judgment's own cause title. This page is filed under one of them.

Asstt. Year : 2017-18 : Asstt. Year : 2018-19 Sadhvi Exim Ltd., Vs DCIT, 6/249, Vipul Khand, Gomti Nagar, Central Circle-29, Uttar Pradesh-226010 New Delhi-110055 (APPELLANT) (RESPONDENT) PAN No. AAVCS1889F Assessee by : None Revenue by : Sh. Dayainder Singh Sidhu, CIT-DR Date of Hearing: 30.09.2025 Date of Pronouncement: 30.09.2025 ORDER Per Satbeer Singh Godara, Judicial Member: These assessee’s twin appeals in & 6109/Del/2025 for Assessment Years 2017-18 & 2018-19, arise against the CIT(A)-25, New Delhi’s DIN & order No. ITBA/APL/M/250/2024-25/1069978542(1) & 1069978542(1) dated 28.10.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”), respectively.

2.

Cases called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

3.

The Revenue vehemently argues that both the learned lower authorities had rightly initiated u/s 153C proceedings & 6109/Del/2025 Sadhvi Exim Ltd. against the assessee which finally culminated in the assessee’s corresponding identical twin assessments inter alia adding commission income on accommodation entries involving varying sums, as upheld in the lower appellate discussion. It is in this factual backdrop that we sought to know about the corresponding incriminating material found or seized against the assessee during the course of search herein dated 13.04.2017.

4.

Learned CIT-DR takes us to both the impugned assessment orders dated 30.04.2021 that the searched person herein had got recorded his statement that he had around 100 companies including the assessee which provided accommodation entries. He could hardly dispute that no such specific incriminating material found/seized during the course of search herein has been quoted by both the learned lower authorities so as to add the impugned alleged accommodation entries @ 4% as per PCIT vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC).

5.

Learned CIT-DR at this stage seeks to buttress the point that the impugned commission income stands added as per the assessee’s authorized person’s search statement recorded u/s 132 of the Act. We are of the view that such a mere admission or confession; during search in absence of the specific evidence & 6109/Del/2025 Sadhvi Exim Ltd. unearthed, hardly carries any significance as per the CBDT’s twin landmark circular dated 10.03.2003 and 18.12.2014, as the case may be. We accordingly hold in this factual backdrop that the learned Assessing Officer’s impugned twin assessments herein are not sustainable in law since not based on any specific incriminating material. The same stand quashed therefore. Ordered accordingly.

6.

All other remaining pleadings between the parties stand rendered academic.

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