JSP Projects Private Limited Vs DCIT (ITAT Delhi)
Section 153C Assessment Orders Quashed for Lack of Incriminating Material and Invalid Section 143(3) Assessments: ITAT Delhi
The Income Tax Appellate Tribunal (ITAT), Delhi, disposed of a batch of five appeals filed by the assessee against separate orders dated 25.03.2025 passed by the Commissioner of Income Tax (Appeals)-25, New Delhi, arising from assessment orders under Sections 153A/153C and 143(3) of the Income-tax Act, 1961 for Assessment Years (AYs) 2015-16, 2016-17, 2019-20, 2020-21 and 2021-22. Since the appeals involved common issues, they were heard together and decided through a common order.
Material Facts and Procedural Background
For AYs 2015-16, 2016-17 and 2019-20, the assessee challenged the jurisdiction assumed under Section 153C and also contested additions made under Sections 68, 69A, 69C and other provisions. The grounds included absence of incriminating material, limitation, non-supply and mechanical recording of satisfaction notes, invalid transfer under Section 127(2), reliance on electronic evidence without compliance with Section 65B of the Indian Evidence Act, 1872/Section 63 of the Bharatiya Sakshya Adhiniyam, 2023, denial of cross-examination, violation of principles of natural justice, applicability of peak theory and non-issuance of show cause notice in terms of CBDT Instruction No. 20/2015.
For AYs 2020-21 and 2021-22, the assessee additionally contended that once proceedings under Section 153C had been initiated, the Assessing Officer could not frame assessments under Section 143(3), and that such assessments were without jurisdiction. Other grounds related to limitation, invalid jurisdiction, Section 127 transfer, Section 153D approval, Section 65B compliance, additions under Sections 69A, 69C and 37(1), TDS credit, and violation of natural justice.
