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Corporate TaxArticle·7 April 2026

153C Satisfaction Failure

By J the App

Executive Summary

In a decisive ruling, the Delhi ITAT has invalidated multiple Section 153C assessments on the ground of defective satisfaction. 

The Tribunal held that the satisfaction note must explicitly demonstrate how seized material has a bearing on determination of income, mere reference to material is insufficient. 

The decision underscores that jurisdictional compliance under Section 153C is not procedural formality but a substantive safeguard, and failure at this threshold vitiates the entire assessment.



Issues for Determination

The Tribunal examined whether a satisfaction note under Section 153C is valid in the absence of a clear finding t...

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