YUVARANI,SURAMPATTI S.O. V. THE ACT, CENTRAL CIR 3, CBE, COIMBATORE

ITA 3128/CHNY/2025

AI Insights

The case involves an appeal by Yuvarani against the order passed by the Commissioner of Income Tax (Appeals) 20, Chennai, for the assessment year 2018-19. The primary contention was regarding the validity of the notice issued under section 153C of the Income Tax Act, 1961, following a search operation conducted on M/s. Anitha Texcot India Pvt. Ltd. The tribunal examined the timeline of events, particularly the dates on which the satisfaction was recorded by the Assessing Officers, and found that the notice issued was not in accordance with the statutory provisions, leading to the quashing of the subsequent assessment order.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840584 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 04-11-2025
• Other Referred Cases: Harigovind v. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. VATCHALA
• Assessee Lawyers: S. BHUPENDRAN
• Keywords: Condonation of delay

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.3128/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2018-19 Yuvarani, 75/8, Pavadi Street, Surampatti Valasu, Surampatti S.O. Erode, Tamil Nadu 638 009. [PAN:AKCPY2234J] Vs. The Assistant Commissioner of Income Tax, Central Circle 3, Coimbatore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri S. Bhupendran, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. C. Vatchala, CIT सुनवाई की तारीख/ Date of hearing : 05.02.2026 घोषणा की तारीख /Date of Pronouncement : 26.02.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 21.07.2025 passed by the ld. Commissioner of Income Tax (Appeals) 20, Chennai for the assessment year 2018-19. 2. We find that this appeal is filed with a delay of 35 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really Printed from counselvise.com I.T.A. No.3128/Chny/25 2 prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The ld. AR Shri S. Bhupendran referred to the additional ground No.1 and submits that the assessment proceedings initiated by the Assessing Officer by issue of notice dated 04.11.2022 under section 153C of the Income Tax Act, 1961 [“Act” in short], is null and void. 4. He submits that a search was conducted in the case of M/s. Anitha Texcot India Pvt. Ltd. on 17.03.2021. The Assessing Officer of the searched person recorded his satisfaction on 15.6.2022 and accordingly Assessing Officer of the assessee recorded his satisfaction on 06.09.2022 which is deemed to be the date of search in the case of the assessee. He drew our attention to page 17 of the paper book and referred to decision of Hon’ble High Court of Madras in the case of Harigovind v. ACIT reported in 180 taxman.com 197 (Madras) and argued that the facts and circumstances of present case is squarely covered by the decision of Hon’ble High Court of Madras in the case of Harigovind v. ACIT (supra) and prayed to allow the additional ground No.1. 5. The ld. DR Ms. C. Vatchala, CIT relied on the order of the ld. CIT(A). Printed from counselvise.com I.T.A. No.3128/Chny/25 3 6. Heard both the parties and perused the material available on record. We note that admittedly, the date of search in the case of the assessee is to be the date on which satisfaction recorded by the Assessing Officer on the assessee, i.e., 06.09.2022, which is after 01.04.2021, which is not disputed by the ld. DR, therefore, the provisions of section 153C of the Act is not applicable and thus, the notice dated 04.11.2022 issued under section 153C of the Act is invalid. Therefore, the consequent assessment order made thereon under section 153C of the Act vide order dated 08.02.2024 is fails and quashed. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced on 26th February, 2026 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 26.02.2026 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "