ITAT Delhi Remands 52 Search Assessment Appeals for Fresh Adjudication

The “F” Bench of the Income Tax Appellate Tribunal, New Delhi, delivered a common order in a batch of fifty-two appeals and cross-objections arising from search proceedings conducted in the Pranjil Batra group. The cases involved assessments framed under Sections 153A and 153C of the Income-tax Act following a search action dated 17 August 2020.

CIT(A)’s Handling of Additional Evidence Questioned

In the lead appeals concerning Pranjil Batra, the Assessing Officer had completed assessments under Section 153A read with Section 144 while the assessee was in custody, resulting in limited opportunity to produce documents. Before the Commissioner (Appeals), the assessee filed extensive additional evidence under Rule 46A explaining the source of transactions. Although the CIT(A) admitted this material, it was never sent to the Assessing Officer for verification. The appellate authority proceeded to uphold the additions without undertaking a reasoned examination as required under Section 250(6). The Tribunal noted that this approach violated procedural fairness.

Tribunal Orders Fresh Consideration for All Connected Cases

The ITAT held that the lead appeals must be remanded to the CIT(A) for fresh adjudication after proper verifi cation of additional evidence and detailed findings. The assessee was directed to present its case within three effective opportunities. To avoid contradictory outcomes, the same directions were extended to all remaining protective assessment cases in the batch. Consequently, all fifty-two appeals and cross-objections were allowed for statistical purposes, with all substantive issues kept open for reconsideration.