Manohar & Filaments Pvt. Ltd. Vs PCIT (ITAT Delhi)
Time-Barred 153C Can’t Be Revived Through 263: No Jurisdiction, No Revision: PCIT Order Quashed: Satisfaction Date Rules the Clock: Revenue Loses 263 Battle- Null Assessment Can’t Be ‘Repaired’ by Section 263
In Manohar & Filaments Pvt. Ltd. Vs. PCIT, ITA No.2644/Del/2025, AY 2016-17, order dated 31.12.2025, Delhi ITAT quashed revision u/s 263 holding that PCIT cannot revise a non-est assessment order.
Search u/s 132 was conducted in Alankit Group on 18.10.2019. In Assessee’s case, satisfaction note u/s 153C was recorded on 11.10.2022. AO, however, issued notice u/s 153C for AYs 2014-15 to 2020-21 by reckoning period from date of search, and completed assessment u/s 153C r.w.s. 143(3) for AY 2016-17. Thereafter, PCIT invoked section 263, alleging lack of enquiry into alleged non-genuine transactions of ₹5.38 crore.
Tribunal held that in view of SC in CIT Vs. Jasjit Singh (458 ITR 437), limitation for section 153C has to be computed from date of recording of satisfaction, not date of search. Since satisfaction was recorded in FY 2022-23 (AY 2023-24), only AYs 2017-18 to 2022-23 could be validly covered. Consequently, notice u/s 153C for AY 2016-17 was time-barred, rendering assessment void ab initio.
ITAT further held that section 263 proceedings are collateral proceedings, and an assessment which is itself without jurisdiction cannot be revised to make it valid. Relying on Suraj Pulses Pvt. Ltd. (Delhi ITAT) and settled law that a null order cannot be foundation for revision, Tribunal quashed PCIT’s order. Appeal was partly allowed with other grounds left open.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the assessee against the order of the Ld.PCIT (Central)-3, Delhi vide order dated 11.03.2025 for the A.Y. 2016-17 passed u/s.263 of the Act.
