Gulshan Homes and Infrastructure Private Limited Vs DCIT (ITAT Delhi)
Section 153C Assessment Quashed for Invalid Satisfaction and Lack of Incriminating Material: ITAT Delhi
The assessee appealed against the order of the Commissioner of Income Tax (Appeals)-30, New Delhi, dated 12.03.2025 for AY 2020-21, arising from an assessment framed under Sections 153C read with 153A of the Income-tax Act, 1961. The assessee challenged the validity of the proceedings, contending that no incriminating material pertaining to it was found during the search conducted on Shri Parveen Kumar Jain and the Hans Group. The assessment was based on WhatsApp chats, handwritten interest sheets and other material recovered from Shri Parveen Jain’s mobile phone, which the Assessing Officer interpreted as evidence of unaccounted cash loans of ₹65.99 crore and unexplained interest expenditure of ₹4.78 crore. The assessee denied the allegations, sought copies of statements and cross-examination of the persons concerned, but Shri Parveen Jain and Shri Vaibhav Jain did not appear despite summons.
The Tribunal observed that the WhatsApp chats referred only to “Gulshan Ji” and nowhere mentioned the assessee company. It further found that although certain names in the handwritten interest sheet matched the assessee’s loan creditors, neither the seized material nor Shri Parveen Jain’s statements established that any cash loans had been received by the assessee. The Tribunal held that the Assessing Officer of the searched person exceeded the scope of Section 153C by drawing factual conclusions instead of merely forwarding material that belonged or pertained to another person. It also held that the presumption under Sections 132(4A) and 292C operated only against the searched person and that no material established that the seized documents belonged to or related to the assessee.
