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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH, ‘B’: NEW DELHI

BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER

AND

SHRI M. BALAGANESH, ACCOUNTANT MEMBER

ITA No.2644/Del/2025

[Assessment Year: 2016-17 ]

Manohar & Filaments Pvt. `Vs. PCIT, (Central)-3, Delhi

Ltd, B-59, G. T. Karnal

Road, Industrial, Area,

New Delhi

PAN No.AAACM1116E

Appellant Respondent

Appellant by Sh. Amit Goel, CA

Sh. Pranav Yadav, Advocate

Respondent by Ms. Pooja Swaroop, CIT DR

Date of Hearing 04.12.2025

Date of 31.12.2025

Pronouncement

ORDER

PER C.N. PRASAD, JM,

This appeal is filed by the assessee against the order of

the Ld.PCIT (Central)-3, Delhi vide order dated 11.03.2025 for

the A.Y. 2016-17 passed u/s.263 of the Act.

2. The assessee has raised following grounds of appeal :-

“1. On the facts and circumstances of case and in

law, the Id. PCIT, Central 3, New Delhi erred in

initiating proceedings under section 263 of Income Tax

Act, 1961 (Act) by wrongly assuming jurisdiction under

section 263 of the Act and hence, the order passed by

the Ld. CIT under section 263 of Act is bad in law,

without jurisdiction and barred by limitation.

2. On the facts and circumstances of case and in

law, the Id. PCIT erred in setting aside the assessment

and has also erred in holding that the original

assessment order passed by the Assessing Officer

under section 153C/143(3) of Act was erroneous and

prejudicial to the interest of the revenue.

3. On the facts and circumstances of case and in law,

the directions issued by the Ld. PCIT under section 263

of Act are erroneous, vague, ambiguous and untenable

and, therefore the order u/s 263 of the Act passed by

the Ld. PCIT is liable to be quashed.

4. On the facts and circumstances of the case and in

law, the Id. PCIT erred in setting aside the assessment

order without appreciating the fact that the same was

passed after taking due approval u/s 153D of JCIT.

5. On the facts and circumstances of the case and in

law, the Id. PCIT erred in stating that the assessment

passed by the assessing officer was without making

inquiries or verification which should have been made.

6. On the facts and circumstances of case and in

law, the Ld. PCIT erred in invoking the provisions of

section 263 of the Act and thereby directing the

Assessing Officer to the carry out detailed enquiries on

issue of alleged non-genuine transactions of Rs.

5,38,50,000/-.

7. On the facts and circumstances of case and in

law, the order passed by PCIT u/s 263 is liable to be

quashed as the original assessment order itself is bad

in law and without jurisdiction.

8. On the facts and circumstances of case and in

law, order passed by PCIT u/s 263 is liable to be

quashed as the directions given by PCIT are beyond the

scope of provisions of section 153C of the Act.”

3. The Ld. Counsel for the assessee at the outset submitted

that the impugned assessment order passed by the AO

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u/s.153C which was sought to be revised by the Ld.PCIT

u/s.263 of the Act, is itself bad in law and therefore, the

Ld.PCIT could not have invoked the provisions of section 263

of the Act for holding such assessment which is bad in law, is

erroneous and pre judicial to the interest of the revenue. The

Ld. Counsel for the assessee submitted that there was a

search in the case of Alankit Group on 18.10.2019 and

pursuant to which a satisfaction note was recorded in the case

of assessee on 11.10.2022. The AO issued notice u/s.153C for

seven assessment years i.e. from 2014-15 to A.Y. 2020-21

based on date of search. The Ld. Counsel for the assessee

submitted that in view of the decision of Hon’ble Supreme

Court in the case of CIT Vs. Jasjit Singh 458 ITR 437, for

initiation of proceedings u/s.153C the date has to be reckoned

from the date of recording of satisfaction note. The Ld.

Counsel for the assessee submitted that the date of recording

of satisfaction note in the present case is 11.10.2022 i.e. F.Y.

2022-23 and A.Y. 2023-24 and the six years which could

have been taken up for assessment u/s.153C are assessment

years 2017-18 to 2023-24 and therefore,