DEPUTY COMMISSIONER OF INCOME TAX, DELHI V. PATANJALI AYURVED LTD., DELHI

ITA 605/DEL/2025

AI Insights

The case involves a series of appeals by M/s. Patanjali Ayurved Ltd. and the Deputy Commissioner of Income Tax, Central Circle-5, New Delhi, concerning assessments made under section 143(3) r.w.s. 153C of the Income-tax Act, 1961, following a search operation. The appeals were related to the assessment years 2013-14 to 2015-16 & 2017-18. The core issue revolved around the validity of the assessments made, which were challenged on the grounds that they lacked specific incriminating material directly linked to the assessee, a requirement underscored by the Supreme Court in the cited case. The Tribunal's decision to quash the assessments was based on the absence of such material, rendering the additional arguments on merits moot.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717829 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 31-01-2025
• Other Referred Cases: PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: S.S. NAGAR
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA Nos.534 to 537/Del/2025 Assessment Years: 2013-14 to 2015-16 & 2017-18 M/s. Patanjali Ayurved Limited. D-26, M/s. Patanjali Ayurved Limited, Extension Pushpanjali Bijwasan, Kapashera, Delhi Vs. Deputy Commissioner of Income Tax, Central Circle-5, New Delhi PAN: AAECP4424C (Appellant) (Respondent) With ITA Nos.605 to 607/Del/2025 Assessment Years: 2014-15, 2013-14 & 2015-16 Deputy Commissioner of Income Tax, Central Circle-5, New Delhi Vs. M/s. Patanjali Ayurved Limited. D-26, M/s. Patanjali Ayurved Limited, Extension Pushpanjali Bijwasan, Kapashera, Delhi PAN: AAECP4424C (Appellant) (Respondent) Date of hearing 06.08.2025 Date of pronouncement 06.08.2025 Assessee by Sh. S.S. Nagar, Adv. Sh. Gaurav Sachdeva, CA Department by Ms. Pooja Swaroop, CIT(DR) Sh. Rajesh Chandra, CIT(DR) Date of hearing 13.08.2025 Date of pronouncement 13.08.2025 Printed from counselvise.com ITA No.534 to 537/Del/2025 & 605 to 607/Del/2025 2 | P a g e ORDER PER SATBEER SINGH GODARA, JM The instant batch of seven appeals involves the single assessee, namely, M/s. Patanjali Ayurved Ltd. This assessee and the department have filed their respective three cross appeals each ITA Nos. ITA Nos.534 to 536/Del/2025 and ITA Nos. 606, 605 & 607/Del/2025, against the Commissioner of Income Tax (Appeals)- 24 [in short, the “CIT(A)”], New Delhi’s separate orders, dated 26.11.2024 (for AYs: 2013-14 and 2014-15) and 27.11.2024 (for AY: 2015-16), passed in case nos. CIT(A), Delhi-24/10102/2012- 13, 10194/2013-14 and 11029/2014-15, in proceedings under section 143(3) r.w.s. 153C of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), respectively. The assessee’s last appeal ITA No.537/Del/2025 is directed against CIT(A)-24, New Delhi’s order dated 27.12.2024 passed in case no. CIT(A), Delhi- 24/10463/2016-17 involving proceedings under section 153C of the Act. Heard both the parties. Case files perused. 2. We notice during the course of hearing that the instant batch of seven cases i.e. assessee’s four and the Revenue’s three cross- appeals, arises from a common search action dated 31st October to Printed from counselvise.com ITA No.534 to 537/Del/2025 & 605 to 607/Del/2025 3 | P a g e 3rd November, 2018 in M/s. Hawala Traders Group leading to initiation of section 153C proceedings herein which finally culminated in the impugned assessments dated 27th March, 2023 in question. And that the learned Assessing Officer himself clarified in the assessment order(s) at page 2 para 4 that “in the case of Sh. Sumit Jindal it was found that he has provided non-genuine bills to………….., including “M/s. Patanjali Ayurved Ltd.” i.e. the assessee. Meaning thereby that no addition herein has been made which could be held to be based on any specific incriminating or seized material during “search”; held as mandatory in PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). 4. We make it clear that once the learned Assessing Officer had issued his section 153C notice on 06.08.2021, all these assessment years i.e. AY 2013-14 to 2015-16 & 2017-18 are “unabated” ones; and, therefore, we hardly find any merit in the Revenue’s vehement contentions supporting the four impugned assessments, which are hereby quashed in very terms. All other pleadings on merits between the parties herein stand rendered academic. Printed from counselvise.com ITA No.534 to 537/Del/2025 & 605 to 607/Del/2025 4 | P a g e 5. These assessee’s four appeals ITA Nos.534 to 537/Del/2025 are allowed and the Revenue’s three cross appeals ITA Nos.605, 606 & 607/Del/2025 are dismissed, in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 6th & 13th August, 2025 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 6th & 13th August, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "