For non-searched persons under s.153C, deemed search date is when jurisdictional AO receives seized material; block assessment years computed from that date. AY 2017-18 fell in s.153C block, rendering s.143(3) assessment invalid.

ORDER 

PER VIMAL KUMAR, JM:

The appeal filed by the Department of Revenue is against the order dated 16.08.2025 of the Ld. Commissioner of Income Tax (Appeals)-26, New Delhi (hereinafter referred to as “Ld. CIT(A)”), u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), arising out of order dated 31.12.2019 of the Ld. Assessing Officer/ACIT Central Circle-14, New Delhi(hereinafter referred to as “Ld. AO”), u/s 143(3) of the Act for Assessment Year 2017-18.

2. Brief facts of the case are that, a search operation u/s 132 of the Act was carried out on 16.12.2016 and on subsequent dates at different business and residential premises of Purushottam Lal Soni Group of cases. Various incriminating papers and documents, related to the assessee, were found and seized. The case was centralized with the ACIT, Central Circle-14, New Delhi vide order dated 29.10.2018 and subsequently order u/s 127 of the Act was passed. After examination of seized material related to the assessee and recording satisfaction, the case of the assessee was taken up for scrutiny u/s 153C of the Act for the A.Y. 2011-12 to 2016-17 and u/s 143(3) for the A.Y. 2017-18. The assessee filed his Return of Income on 03-08-2017 declaring total income of Rs.12,90,010/-. Notice u/s 143(2) was issued on 02.09.2018. Questionnaire along with notice u/s 142(1) of the Act was issued on 09-11- 2019. Sh. Niranjan Lal Gupta, CA, AR of the assessee attended the hearings and filed submissions

3. On completion of proceedings, Ld. AO, vide order dated 31.12.2019 made addition of Rs.44,77,00,000/-.

4. Against order dated 31.12.2019 of Ld. AO, assessee filed appeal before Ld. CIT(A) which was allowed vide order dated 16.08.2025.

5. Being aggrieved, the appellant-Department of revenue preferred present appeal on following grounds of appeal:-

1. Whether on the facts and circumstances of the case and in law, Ld. CITIA) is correct in allowing relief on addition of Rs 44,77,00,000 by relying on decision of Hon'ble Delhi High Court in case of Ojjus Medicare P Ltd?

2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in holding that when date of search was 16.12.2016, then AY 2017-18, which pertains to search year, should be assessed u/s 153C and not u/s 143(3) of the Act?

3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in not appreciating that date of receipt of seized material has been considered as deemed date of search by Hon'ble Apex Court in case of Jasjit Singh only for purposes of counting number of years that can be re-opened u/s 153C and not for application of section for assessment purposes?

4. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) was justified in holding that block periods tor assessment u/s 153C of the Income-tax Act, 1961, have to be calculated from the date of receipt of the books of accounts, documents or assets seized, by the jurisdictional AO of the non-searched person, even when this interpretation in contrary to the legislative intent since the assessment for the years after the search i.e. 2018-19 & 2019-20 would be redundant as there will be no incriminating seized material and as such assessment in years cannot be made u/s 153C of the Act?

5. The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal.

6. Ld. Authorized Representative for respondent-assessee filed application under Rule 27 of the ITAT Rules raising following jurisdictional grounds:-

1 "that impugned assessment order passed u/s 143(3) of 1961 Act is