Shiv Kumar Gupta HUF Vs DCIT/ACIT (ITAT Lucknow)
The appeals were filed by Shiv Kumar Gupta HUF and Paras Gupta against the respective appellate orders of the Commissioner of Income Tax (Appeals), involving similar issues. IT(SS)A No. 985/Lkw/2025 for AY 2017-18 in the case of Shiv Kumar Gupta HUF was treated as the lead case, with the parties agreeing that the decision would apply mutatis mutandis to the remaining appeals.
The assessment order dated 25.03.2023 was passed under Section 153C of the Income Tax Act, 1961, determining the assessee’s total income at Rs. 26,28,900. Additions of Rs. 9,00,000, Rs. 4,77,600, and Rs. 12,51,297 were made on account of unsecured loan, bank deposits, and unexplained business receipts. The CIT(A) dismissed the assessee’s appeal, following which the present appeal was filed before the Tribunal.
The assessees also raised additional legal grounds contending that the proceedings under Section 153C lacked jurisdiction because no incriminating material was found during the search and that the satisfaction recorded under Section 153C was defective as a common satisfaction note had been prepared for all assessment years without year-specific incriminating material. The Revenue did not object to the admission of these additional grounds. After considering the written submissions and the judicial precedents relied upon by the assessees regarding admission of pure legal grounds, the Tribunal admitted the additional grounds.
