DCIT Vs JFC Finance (India) Limited (ITAT Delhi)
The Delhi ITAT quashed the assessments framed under Section 153C in the cases of JFC Finance (India) Ltd. and Alok Dhir arising from the Alankit Group search, holding that the satisfaction note failed to establish how the seized material had any “bearing on the determination of total income” of the assessees. The Tribunal noted that the satisfaction note merely referred to documents and ledger entries allegedly found during search, but did not demonstrate year-wise nexus or incriminating relevance to the assessees’ income. Relying heavily on the Delhi High Court ruling in Saksham Commodities Ltd. and the Supreme Court decisions in Sinhgad Technical Education Society and Abhisar Buildwell, the Tribunal reiterated that Section 153C jurisdiction cannot be invoked mechanically for all years merely because some material belongs to or pertains to another person. For completed assessments, there must be incriminating material having direct nexus with the relevant assessment year and bearing on income determination. Since the satisfaction note lacked this foundational jurisdictional requirement, the assessments were held unsustainable and Revenue’s appeals were dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned Appeals are filed by the Revenues’ against the orders of Ld. Commissioner of Income Tax (Appeals)-26, New Delhi (Ld. CIT(A)’ for short), dated 15/04/2025 for the Assessment Year 2014-15.
