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Facts
The appeals arose from a search action and involved six assessment years from 2008-09 to 2013-14. The additions were made based on estimated foreign travel expenses and cash purchases. The four earlier assessment years were unabated.
Held
The tribunal held that the additions made in the four unabated assessment years were not based on specific seized material, following the decision in PCIT Vs. Abhisar Buildwell Pvt. Ltd. The revenue's cross-appeal was dismissed.
Key Issues
Whether additions made in unabated assessments are to be based on specific seized material in light of the Abhisar Buildwell decision.
Sections Cited
153A, 144, 143(2)
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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
PER BENCH: These assessee’s five appeals 2852, 2853, 2854 & 2855/Del/2018 for assessment years 2008-09, 2010-11, 2011-12, 2012-13 & 2013-14 with the Revenue’s cross appeal for assessment year 2012-13 are directed against the Commissioner of Income Tax (Appeals)-IV, Kanpur’s common order dated 09.12.2017 passed in case no. CIT(A)IV/10856, 10854, 10159, 10158, 10156 & 10157/DCIT- CC/NOIDA/2016-17/440 to 453, involving proceedings under section 153A r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively. Heard both the parties at length. Case files perused.
We notice at the outset that the entire batch of the instant six appeals has arisen from the department’s search action dated 09.10.2013 in Shubhkamna Buildtech Pvt. Ltd. group of cases. And the relevant assessment years involved herein are AYs 2008- 09 to 2013-14 except AY 2009-10. Meaning thereby, that all the 2 | P a g e former four assessment years 2008-09, 2010-11, 2011-12 and 2012-13 involve “unabated” assessments since the last date of issuing 143(2) notices (for AY: 2012-13) was very well over as on the date of search coming to 09.10.2013.
It is in this factual backdrop that we sought to ascertain from both the parties as to whether the corresponding additions or disallowances; as the case may be, made herein in these former four assessment years are strictly based on the specific seized material or not in light of hon’ble apex court recent landmark decision in PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). The Revenue could hardly dispute that all what the learned Assessing Officer’s identical assessment framed on 29th March, 2016 had done was to estimate the assessee’s foreign travel expenses of Rs. 5 lakhs right from the first and foremost assessment year 2008-09 onwards. The other addition made in the assessee’s hands was some cash purchases which were claimed as gifted from her father to her whose details are nowhere forthcoming so as to be treated as any incriminating material. We thus see merit in the assessee’s instant former four appeals 2852, 2853 & 2854/Del/2018 challenging the learned lower authorities’
3 | P a g e action not making any addition based on the specific seized materials. The department’s cross appeal is hardly found to be carrying any substance since not satisfying the above legal test which is hereby dismissed in very terms. Ordered accordingly.
Coming to the assessee’s last remaining appeal involving an “abated” assessment in AY 2013-14, we are informed that the CIT(A) has already deleted the foreign travel expenses of Rs.5 lakhs herein. So far as her latter substantive ground of jewellery purchases of Rs.67,700/- is concerned, she very fairly submits not to press for the same keeping in mind smallness of the amount involved. Rejected accordingly. The assessee’s instant last appeal ITA No. 2855/Del/2018 is partly allowed. All other remaining pleadings herein stand rendered academic in above terms.
These assessee’s former four appeals 2852, 2853 & 2854/Del/2018 are allowed and her last appeal ITA No.2855/Del/2018 is partly allowed and the Revenues’ cross