Consolidated satisfaction note under section 153C without year-wise segregation of incriminating material for each assessment year is invalid, quashing jurisdiction and assessment proceedings.

ORDER

PER MANISH AGARWAL, AM:

This appeal is filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Delhi-23 [‘ld. CIT(A)’ in short], dated 28.06.2025 in Appeal No. CIT(A)/Delhi-23/10927/2015-16 arising out of the assessment order passed u/s 153C of the Act, 1961 (the Act’ in short) dated 18.03.2023 for Assessment Year 2016-17.

2. Brief facts of the case are that assessee is an individual and furnished his return of income on 30.03.2017 declaring total income at Rs. 45,30,940/-. A search and seizure action u/s 132 was conducted in the case of M/s CIFSL, M/s BIDPL, Shri Harish Gahlot group of cases on 10.10.2018. Based on the material found during the course of search, the AO of the person searched had recorded the satisfaction that certain documents pertained to assessee and, accordingly, the material along with satisfaction note was handed over to the AO of the assessee. Upon receipt of such documents and the satisfaction note, the AO of the assessee recorded his satisfaction on 09.06.2021 and issued the notice u/s 153C for the impugned assessment year. Thereafter statutory notices were issued from time to time asking the assessee to file necessary details and after considering the submissions filed by the assessee, order was passed u/s 153C of the Act dated 18.03.2021 by making addition of Rs.8,80,000/- being bogus commission expenses u/s 69C of the Act and the total income was assessed at Rs.54,10,940/-.

3. Against the said order, the assessee preferred an appeal before the Ld. CIT(A) who vide impugned order dated 28.06.2025 has dismissed the appeal of the assessee.

4. Aggrieved by the said order, the assessee is in appeal before the Tribunal by taking following grounds of appeal:

“1. That having regard to the facts and circumstances of the case, Ld. CTT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned assessment order u/s 153C and that too without assuming jurisdiction as per law and without recording mandatory satisfaction in accordance with law and without complying with the other mandatory conditions as per law.

2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in passing the impugned order u/s 153C, is illegal, bad in law and against the facts and circumstances of the case.

3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs.8,80,000/- on account of commission expenses by treating it as alleged unexplained expenses u/s 69C and that too without there being any incriminating material found as a result of search and by recording incorrect facts and findings and without observing the principles of natural justice.

4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs.8,80,000/- on account of commission expenses u/s 69C, is bad in law and against the facts and circumstances of the case.

5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in passing the impugned assessment order dated 18- 03-2023 without there being requisite approval in terms of section 153D and in any case approval, if any, is mechanical without application of mind and is no approval in the eyes of law.

6. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging i