Lekh Raj Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi allowed six appeals filed by the assessee for Assessment Years (AYs) 2013-14 to 2017-18 and 2019-20 against the orders of the Commissioner of Income Tax (Appeals) dated 12.03.2025. Since all the appeals arose from the same search proceedings, the Tribunal heard them together and treated AY 2013-14 as the lead case.
The appeals challenged, among other issues, the assumption of jurisdiction under Section 153C, the validity of the assessments framed under Section 153C read with Section 143(3), and the protective addition of ₹44,89,000 under Section 68. The assessee also contended that the additions were made without incriminating material, without granting an opportunity for cross-examination, and in violation of the principles of natural justice.
The Tribunal noted that a search and seizure operation under Section 132 was conducted in the case of Navin Mahipal Group on 16.09.2019, during which certain documents relating to the assessee were found and seized. Consequently, proceedings under Section 153C were initiated for AYs 2010-11 to 2019-20, and a notice dated 30.09.2021 was issued. The Tribunal observed that, apart from registered sale deeds, no other documents relating to the assessee were seized. A consolidated satisfaction note for all assessment years was recorded by the Assessing Officer on 28.09.2021. Thereafter, the Assessing Officer passed an order under Section 153C read with Section 143(3) on 30.03.2023, making a protective addition of ₹44,89,000 under Section 68 in respect of amounts credited to the assessee’s bank account. The CIT(A), in ex parte proceedings, dismissed the appeals in their entirety.
