Ankit Agarwal & Sons Vs DCIT (ITAT Delhi)
The Delhi ITAT quashed assessments framed u/s 153C against multiple assessees including Ankit Agarwal, Alok Agarwal and Jagmohan Kejriwal after holding that the Assessing Officer recorded a single consolidated satisfaction note for several assessment years without identifying year-wise incriminating material or bifurcating alleged additions pertaining to each year. The Tribunal noted that consolidated satisfaction notes were recorded covering broad blocks of years from AY 2010-11/2014-15 up to AY 2020-21, and assessments were framed solely on the basis of such generalized satisfaction.
Relying heavily on the Delhi High Court ruling in Saksham Commodities Ltd. vs. ITO and Karnataka High Court judgment in DCIT vs. Sunil Kumar Sharma, the ITAT held that section 153C requires the AO to specifically identify incriminating material relatable to each particular assessment year and record proper satisfaction regarding how such material impacts determination of income for that year. The Tribunal observed that reopening all years mechanically merely because some material was found for one year is impermissible in law. The Bench also noted that the Supreme Court had dismissed the Revenue’s SLP against Sunil Kumar Sharma as well as against Saksham Commodities Ltd.. Accordingly, the ITAT held that recording of consolidated satisfaction notes vitiated the very assumption of jurisdiction u/s 153C and consequently quashed all the impugned assessments.
FULL TEXT OF THE ORDER OF ITAT DELHI
