ALLEN PETROCHEMICALS PVT. LTD.,MEERUT V. DCIT, CENTRAL CIRCLE, MEERUT, MEERUT

ITA 4078/DEL/2025

AI Insights

The case involves Allen Petrochemicals Pvt. Ltd., which appealed against the order of the CIT(A)-3, Noida, concerning the assessment year 2018-19. The appeal was against the additions made under section 69C read with section 115BBE of the Income Tax Act, 1961, which pertained to unexplained expenditure representing cash payments to a searched party. The primary legal contention was regarding the application of section 153C, which deals with the assessment of income of a person other than the person searched. The Tribunal noted that the satisfaction recorded by the Assessing Officer under section 153C, which led to the inclusion of certain documents as belonging to Allen Petrochemicals, was not in accordance with the amended provisions of the law post-2015 Finance Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792041 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Appeal Filed On: 25-06-2025
• Other Referred Cases: Prashant Premchand Bafana Vs. ACIT IT(SS)A No. 119 & 120/Pun/2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOURANGA CHANDRA DAS
• Keywords: Unexplained expenditure; Document seized; Documents seized
• Section: 69C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal, Accountant Member ITA No. 4078/Del/2025 : Asstt. Year: 2018-19 Allen Petrochemicals Pvt. Ltd. Plot No. 8835, Accronda Industrial Estate, Delhi Road, Partapur, Meerut, U.P.-250103 Vs DCIT, Central Circle, Meerut, U.P.-250001 (APPELLANT) (RESPONDENT) PAN No. AACCA4573H Assessee by : None Revenue by : Sh. Gouranga Chandra Das, Sr. DR Date of Hearing: 09.12.2025 Date of Pronouncement: 09.12.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)-3, Noida’s DIN & order No. ITBA/APL/M/250/2025-26/1076842849(1) dated 09.06.2025, in proceedings u/s 153C r.w.s. 144 of the Income Tax Act, 1961. 2. Case called twice. None appears at the assessee’s behest. The assessee/appellant had also not put in appearance in the previous hearing as well. We thus proceeded ex-parte against the assessee. 3. Mr. Das vehemently argues that both the lower authorities have rightly made section 69C r.w.s. 115BBE of the Act, Printed from counselvise.com ITA No. 4078/Del/2025 Allen Petrochemicals Pvt. Ltd. 2 unexplained expenditure addition representing assessee’s cash payments to the searched party, in the assessment order dated 26.03.2024 as upheld in the lower appellate discussion. 4. We have given our thoughtful consideration to the assessee’s and the Revenue’s respective stands all along. Suffice to say, the learned departmental authorities had carried out a search in M/s Blomstrende Buildwell Pvt. Ltd. group of cases on 15.01.2021. This followed the centralization of the assessee’s case(s) as well. And that the learned Assessing Officer then recorded section 153C satisfaction followed by his notice dated 02.01.2024 which finally culminated in the impugned assessment framed forming subject matter of adjudication before us. 5. We further notice that the learned Assessing Officer had himself made it clear at page 2 in para 3 of the assessment order that the seized diary and various loose sheets found/seized during the course of search in M/s Sunny Chemical Pvt. Ltd. and the information contained therein “belongs to” M/s Allen Petrochemicals Pvt. Ltd. and has bearing upon the determination of it’s total income. That being the case, we invited the Revenue’s attention to section 153C(1)(a)(b) wherein the legislature has incorporated the clinching statutory Printed from counselvise.com ITA No. 4078/Del/2025 Allen Petrochemicals Pvt. Ltd. 3 expression of “belongs to” for any money, bullion, jewellery......than such seized documents and loose sheets etc. covered under the latter clause. This tribunal’s recent learned co-ordinate bench in Prashant Premchand Bafana Vs. ACIT IT(SS)A No. 119 & 120/Pun/2022 decided on 08.04.2025 has already settled the issue in the assessee’s favour and against the department that satisfaction recorded u/s 153C could not treat such books of account or documents as “belongs to” a third person after the legislative amendment therein vide Finance Act, 2015 w.e.f. 01.06.2015. We adopt the very analogy herein-as-well mutatis mutandis to quash the learned Assessing Officer’s assessment dated 26.03.2024 in very terms. 6. All other remaining pleadings between the parties stand rendered academic. 7. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 09/12/2025. Sd/- Sd/- (Manish Agarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 09/12/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "