Delhi High Court – Orders
Landcraft Developers Private Limited vs Assistant Commissioner Of Income Tax, … on 28 February, 2025
Author: Tushar Rao Gedela
Bench: Tushar Rao Gedela
$~6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 1936/2025 and CM APPL. 9062/2025, &
CM APPL. 9063/2025
LANDCRAFT DEVELOPERS PRIVATE LIMITED
.....Petitioner
Through: Mr. Salil Kapoor, Mr. Sumit Lal
Chandani and Ms. Ananya
Kapoor, Advocates.
versus
ASSISTANT COMMISSIONER OF INCOME TAX,
CENTRAL CIRCLE 27, DELHI & ANR. .....Respondents
Through: Mr. Shlok Chandra, Sr. Standing
Counsel alongwith Ms. Naincy
Jain and Ms. Madhavi Shukla,
JSCs for Revenue.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
ORDER
% 28.02.2025
1. The petitioner has filed the present petition, inter alia, impugning
a notice dated 19.12.2023 (hereafter the impugned notice) issued under
153C of the Income Tax Act, 1961 (hereafter the Act) as well as the
proceedings for re-assessment of the petitioner’s income in respect of
Assessment Year (AY) 2017-18.
2. The impugned notice is premised on the satisfaction note of the
Assessing Officer (AO) of Sh. Alok Kumar Agarwal, Sh. Ankit
Agarwal, M/s Alankit Limited and M/s Alankit Assignments Limited
(searched persons), which recorded that documents containing
information pertaining to the petitioner were found during the search
conducted in the case of searched persons on 18.10.2019.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 03/03/2025 at 21:57:29
3. Admittedly, the satisfaction note does not contain any information
which may have a bearing on determining the petitioner’s income
assessable in the AY 2017-18. The note indicates that in view of the
description of the documents found and seized during the course of the
search, the documents belong to the petitioner.
4. It is clear from the information provided in the satisfaction note
dated 22.06.2022 entered by the AO of the searched persons and
satisfaction note dated 08.11.2023 entered by AO of the other than the
searched person could not possibly lead to the conclusion that the
income of the Assessee for AY 2017-18 had escaped assessment. The
ledgers found cannot be considered as containing any incriminating
material pertaining to the petitioner in respect of AY 2017-18. Thus, the
petitioner’s assessment for the said year could not be reopened under
Section 153C of the Act..
5. Concededly, the aforesaid issue is covered by the decision of the
Supreme Court in Commissioner of Income Tax-III, Pune v. Sinhgad
Technical Education Society: [2017] 84 taxmann.com 290 as well as
the recent decision of this court in Saksham Commodities Ltd. v.
Income Tax Officer Ward 22 (1), Delhi & Anr.: 2024:DHC:2836-DB.
6. It is relevant to set out paragraph 68 of the said decision which
reads as under:
68. The jurisdictional AO would have to firstly be satisfied that
the material received is likely to have a bearing on or impact the
total income of years or years which may form part of the block of
six or ten AYs’ and thereafter proceed to place the assessee on
notice under Section 153C. The power to undertake such an
assessment would stand confined to those years to which the
material may relate or is likely to influence. Absent any material
that may either cast a doubt on the estimation of total income for
a particular year or years, the AO would not be justified in
invoking its powers conferred by Section 153C. It would only be
consequent to such satisfaction being reached that a noticeThis is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 03/03/2025 at 21:57:29
would be liable to be issued and thus resulting in the abatement
of pending proceedings and reopening of concluded
assessments.
[Emphasis added]
7. The learned counsel for the respondent concurs with the aforesaid
view.
8. In view of the above the present petition is allowed and the
impugned notice issued under Section 153C of the Act in respect of AY
2017-18 is set aside.
9. Pending applications also stand disposed of.
DEVENDRA KUMAR UPADHYAYA, CJ
TUSHAR RAO GEDELA, J
FEBRUARY 28, 2025/rl
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 03/03/2025 at 21:57:29
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