DCIT Vs Planet Infra Promoters P. Ltd. (ITAT Delhi)
In this appeal the Revenue challenged the deletion of addition made by AO u/s 153A r.w.s. 153C, based on a seized loose sheet found in the search on Antriksh Group (05.02.2014). The AO recorded satisfaction on 02.03.2016 alleging that the seized page showing “Received from Ajit – 75 lakh” belonged to / pertained to Planet Infra Promoters Pvt. Ltd. & therefore issued notice u/s 153C. Assessment was completed treating the amount as unexplained income for AY 2013-14.
CIT(A) deleted the addition holding that the seized material did not “belong to” the Assessee for pre-01.06.2015 searches, relying on Singhad Technical Education Society (SC) & Canyon Financial Services (Delhi HC). CIT(A) held that the AO failed to rebut the presumption u/s 292C that seized documents belong to the searched person. The satisfaction note never identified any material showing that the seized diary related to Planet Infra Promoters.
Before Tribunal, the DR argued that post-Finance Act 2015, the test changed to “pertains to / relates to”, & in view of ITO Vs Vikram Sujit Kumar Bhatia (SC, 2024) the amendment applies even to pre-01.06.2015 searches. However, Tribunal noted that even under the expanded legal standard, the AO must still demonstrate a live, proximate nexus linking the seized material to the other person. The seized page contained only the narration “Received from Ajit – 75 lakh”; no name, address or reference of the Assessee appeared anywhere.
