Shaminder Singh Vs ACIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) dealt with three appeals filed by the assessee against separate orders passed by the Commissioner of Income Tax (Appeals), Delhi-24, dated 04.06.2025 for Assessment Years (AYs) 2016-17, 2017-18, and 2018-19. The appeals challenged both the legality of the assessments framed under Section 153C of the Income-tax Act, 1961, and the additions made by the Assessing Officer (AO).
The assessee had raised several grounds, including objections to the assumption of jurisdiction under Section 153C, validity of the satisfaction note, alleged failure to issue notice under Section 143(2), additions based on loose sheets found during the search of a third party, denial of cross-examination, applicability of Section 69A, validity of approval under Section 153D, and levy of interest under Sections 234A, 234B, and 234C.
At the outset, the assessee did not press the ground challenging the validity of approval under Section 153D. Consequently, that ground was dismissed as not pressed. Similarly, an additional ground relating to the validity of approval under Section 153D was also not pressed and was dismissed.
The principal issue before the Tribunal concerned the validity of the proceedings initiated under Section 153C. The assessee argued that the satisfaction note under Section 153C had been recorded on 15.12.2021. According to the assessee, for a person other than the searched person, the deemed date of search is the date on which the satisfaction note is recorded or the seized material is handed over to the jurisdictional Assessing Officer. Since the satisfaction note in the present case had been recorded after 01.04.2021, proceedings under Section 153C could not validly be initiated in view of Section 153C(3), which provides that Section 153C shall not apply to searches initiated on or after 01.04.2021. The assessee contended that, in such circumstances, proceedings, if any, could only be initiated under Section 148.
