DIKSHA PROPERTIES,DEHRADUN vs. DCIT CENTRAL CIRCLE, DEHRADUN

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ITA 42/DDN/2019Status: DisposedITAT Dehradun01 December 2021AY 2016-173 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that no additions could be made in the absence of seized material and that the assessment could not be treated as abated. Therefore, the additions made were not legally valid.

What were the facts?

A search operation on a group of cases led to the discovery of documents belonging to the assessee. The assessee filed a return of income, and subsequently, the Assessing Officer made additions to the income. The assessee appealed the CIT(A)'s order.

What were the issues?

Whether additions made by the revenue were legally valid in the absence of seized material and when the assessment was not abated.

Which sections of the Income-tax Act were involved?

Section 132,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, NEW DELHI

Before: Sh. Amit ShuklaDr. B. R. R. Kumar

Hearing: 12.11.2021Pronounced: 01.12.2021

This appeal has been filed by the assessee against the order of the ld. CIT(A-04, Kanpur, dated 30/04/2019. 2. A search & seizure operation was conducted in Shri Kuldeep Singh Rawat and M/s. Doon Valley Distillers/ Brewers Group of cases on 18.03.2016. During the course of search, certain information/documents belonging to the assessee were also found. The case of the assessee was centralized to this office vide centralization order of pr. Commissioner of Income Tax, Dehradun F. No. Pr. CIT/DDN/ CON./Tran. 2017/2016-17 dated 23.12.2016. Accordingly notice u/s 142(1) was issued on 11.09.2017 for furnishing the return of Income on or before 26.09.2017. In compliance of the above notice, the assessee filed return of income on 01.12.2017 declaring total income of Rs. 4,98,230/-. Notice u/s 143(2) & 142(1) along with questionnaire were issued on 10.10.2017.

3.

The assessee is a partnership firm constituted by virtue of partnership deed dated 20.10.2009 having four partners namely Shri Kuldeep Singh Rawat, Sh. Vikram Panwar, Sh. Rajendra Kandari and Smt. Hemlata Rawat having 50%, 10%, 10% and 30% share in the firm respectively.

4. During the hearing before us, the Ld. AR filed a copy of the information u/s 7(1) of the RTI Act, 2005 obtained from DCIT, Circle- Dehradun on 19.11.2018, the same reads as under :-

Information u/s 7(1) of the Right to Information Act-2005 This office has received an application under Right to information Act, 2005 dated 30.10.2018 received in this office on 31.10.2018.

The applicant vide his above application has sought the following information as under :

Point 1 Please let the asseessee During the course of search conducted on 18.03.2016 in the group of \ M/s Doon Valley Distillers/Brewers firm inform fromwhich certain incremental material was found/seized in the assessment year the premises of Sh. Kuldeep Singh Rawat, Village incrementalmaterial was Ratanpur, D.Dun. Certain documents as per annexure found during search in A-l to A-10 was found and seized from the above his case premises. The document seized as per annexure A-5 bears the name of Diksha Properties, Ratanpur .Naya j Gaon, D.Dun. Date on the above annexure is mentioned as 09.04.2014 I which pertains to F.Y.2014-15 relevant to A.Y.2015-16. Point 2 Please supply the copy of As per document seized as annexure A-5, copy of paper containing the name of Diksha Properties, incremental material Ratanpur, Naya Gaon, D.Dun is enclosed. wherein the name of the above assessee firm is written. Point 3 As per the record available in this office and Please inform/ supply the assessment orders passed by this office in the copy of account or the case of applicant from A.Y. 2010-11 to any material which 2016-17 no addition has been made to the was been found income on the basis of incremental material during the course of found during the course of search. search to substantiate that the amount which has been added to the income

5.

Facts relevant to the adjudication of the case are that : • Date of search u/s 132 – 18.03.2016 (A.Y. 2016-17) • Date of recording of satisfaction – 11.09.2017 • Date of deemed search - 11.09.2017 (A.Y. 2018-19) • Six preceding years – 2017-18 to 2012-13 • Due date of filing of return for Assessment Year 2016-17 – 31.08.2016 • Due date for issue of notice u/s 143(2) – 31.08.2017 • Hence, the case of the assessee cannot be treated as abated assessment. • Hence, no addition can be made in the absence of seized material. • On going to the record before us and as well as the reply furnished by the DCIT, Central Circle in response to the RTI filed, no addition has been made by the revenue based on the material found and seized during the search. • Hence, the addition made on account of expenses, cash deposits in the unabated assessment cannot be held to the legally valid.

4.

In the result, appeal of the assessee is allowed.

Order Pronounced in the Open Court on 01/12/2021.

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