Waaneep Solar Private Limited Vs ITO (ITAT Mumbai)
ITAT Mumbai Upholds Composite Satisfaction under Section 153C and Sustains Partial Section 69C Addition in Solar Project Land Purchase Case
The Mumbai Bench of the ITAT dismissed the appeals of Waaneep Solar Pvt. Ltd. for AYs 2015-16 and 2016-17, upholding both the assumption of jurisdiction under section 153C and the partial addition sustained under section 69C.
On the jurisdictional challenge, the assessee contended that proceedings under section 153C were invalid as the Assessing Officer had recorded a single consolidated satisfaction note for multiple assessment years. Rejecting this plea, the Tribunal held that a composite satisfaction note is legally valid so long as it clearly identifies the incriminating material and demonstrates its bearing on the determination of income for the relevant years. Relying on the Delhi High Court decision in Indian National Congress v. DCIT and its own coordinate bench ruling in Upkar Mani, the ITAT distinguished the Supreme Court judgment in Sunil Kumar Sharma and concluded that no prejudice was caused to the assessee, since the same incriminating material—email communications and an attached “land ledger” Excel file—formed the basis of additions for both AYs 2015-16 and 2016-17.
On merits, the additions arose from alleged cash expenditure on purchase of land for a solar power project, based on internal email correspondence and Excel sheets recovered during search in the Waaree group. While the assessee argued that these were informal draft documents prepared by an employee and that statements admitting undisclosed income were later retracted, the Tribunal noted that the assessee itself had furnished detailed reconciliations admitting that a substantial part of the cash transactions was genuine and recorded in the books.
The CIT(A) had accepted the reconciliation to the extent of ₹6.19 crore, but sustained the balance ₹1.86 crore (AY 2015-16) and ₹14.08 lakh (AY 2016-17) as unexplained expenditure under section 69C, since these amounts could not be reconciled with books, cash balances, or land purchase agreements. The ITAT found no infirmity in this approach, observing that once the seized material was partly corroborated by the assessee’s own records, the unreconciled portion could not be ignored.
Accordingly, the Tribunal upheld the validity of section 153C proceedings, sustained the partial additions under section 69C, and dismissed both appeals of the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
Waaneep Solar Private Limited Vs ITO (ITAT Mumbai)
The above captioned appeals have been filed by the assessee against the orders of even date as passed by the Learned Commissioner of Income-tax, Appeal, CIT(A)-48, Mumbai [hereinafter referred to as “CIT(A)”] pertaining to the assessment orders passed u/s. 153C r.w.s. 143(3) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 15.04.2021 for the Assessment Years [A.Ys.] 2015-16 & 2016- 17.Since the issues involved are common and also the fact that appeals were heard together, they are being taken up together for adjudication vide this composite order for the sake of brevity. ITA No. 4031/Mum/2025 is taken as the ‘Lead case’. Decision herein would apply mutatis mutandis to the appeal for AY 2016-17.
