DCIT Vs Abhayraj Fattehraj Chordiya (ITAT Pune)
No Asset ≥ ₹50 Lakh, No 10-Year Reach: One Satisfaction for Seven Years = No Jurisdiction: Pune ITAT Quashes 153C
The Pune ITAT dismissed Revenue’s appeal and allowed Assessee’s cross-objection, quashing the entire assessment u/s 153C r.w.s. 143(3). The Tribunal held that the 153C proceedings were jurisdictionally invalid on multiple counts: (i) a single consolidated satisfaction note was recorded for seven AYs (2014-15 to 2020-21) instead of year-wise satisfaction, contrary to law; (ii) mechanical/common approval u/s 153D was granted for all years, without independent application of mind for each AY; and (iii) extended 10-year period could not be invoked as there was no satisfaction of income represented in the form of an “asset” ≥ ₹50 lakh—the seized material comprised dumb loose sheets without corroboration.
On merits as well, the Tribunal upheld deletion of ₹3.59 crore added u/s 69A, noting no corroborative evidence of cash receipt by Assessee: no dates, no handwriting/signature of Assessee, no confirmations, no bank trail, and even cheques stood cancelled. Reliance on third-party loose papers without linkage to Assessee was impermissible. Consequently, the assessment was quashed, Revenue’s appeal dismissed, and Assessee’s CO allowed
FULL TEXT OF THE ORDER OF ITAT PUNE
