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Facts
The appeals relate to a batch of five assessment years (2008-09 to 2012-13) for the assessee M/s. Ess Aar Corporate Services Pvt. Ltd. The assessments under Section 153A r.w.s. 143(3) were made consequent to a search and seizure operation dated 22.01.2018. The assessee contested the validity of these assessments.
Held
The Tribunal held that the assessments under Section 153A r.w.s. 143(3) were not sustainable in law because the addition in the assessee's hands was not confined to specific seized incriminating material, and the lower authorities failed to establish this nexus. The Tribunal relied on the Supreme Court decision in PCIT Vs. Abhisar Buildwell Pvt. Ltd.
Key Issues
The primary issue was the validity of the assessments framed under Section 153A r.w.s. 143(3) for unabated assessment years, specifically whether additions were confined to seized material.
Sections Cited
153A, 143(3), 153D
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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
The instant batch of five appeals pertain to a single assessee herein, namely, M/s. Ess Aar Corporate Services Pvt. Ltd. All other relevant details thereof read as under: Sl. Appeal No. Appellant Respondent Order Appealed against No. 1. 2901/Del/2024 Ess Aar ACIT, Central CIT(A)-3, Gurgaon’s order for AY: 2008-09 Corporate Circle, Karnal dated 27.05.2024 passed in Services Pvt. case no. 10354/CIT(A)- Ltd. 3/GGN/2019-20, involving proceedings under Section 143(3) r.w.s. 153A(1)(b) of the Act. 2. 2902/Del/2024 Ess Aar ACIT, Central CIT(A)-3, Gurgaon’s order for AY: 2009-10 Corporate Circle, Karnal dated 27.05.2024 passed in Services Pvt. case no. 10355/2019-20, Ltd. involving proceedings under Section 153A r.w.s. 143(3) of the Act. 3. 2903/Del/2024 Ess Aar ACIT, Central CIT(A)-3, Gurgaon’s order for AY: 2010-11 Corporate Circle, Karnal dated 27.05.2024 passed in Services Pvt. case no. 10356/2019-20, Ltd. involving proceedings under section 143(3) r.w.s. 153A(1)(b) of the Act. 4. 2904/Del/2024 Ess Aar ACIT, Central CIT(A)-3, Gurgaon’s order for AY: 2011-12 Corporate Circle, Karnal dated 27.05.2024 passed in Services Pvt. case no. 10357/CIT(A)- Ltd. 3/GGN/2019-20, involving proceedings under section 143(3) r.w.s. 153A(1)(b) of the Act. 5. 2905/Del/2024 Ess Aar ACIT, Central CIT(A)-3, Gurgaon’s order for AY: 2012-13 Corporate Circle, Karnal dated 27.05.2024 passed in Services Pvt. case no. 10358/CIT(A)- Ltd. 3/GGN/2019-20, involving proceedings under section 143(3) r.w.s. 153A(1)(b) of the Act.
Heard both the parties at length. Case files perused.
It emerges at the outset that there arises the first and foremost issue of validity of the impugned section 153A r.w.s.
143(3) assessments itself framed by the learned Assessing Officer on 20.12.2019 in furtherance to the alleged search in question dated 22.01.2018 in M/s. Oswal Group of cases. This is for the precise reason that all these impugned assessment years before us from 2008-09 to 2012-13 involve “unabated” assessments wherein
2 | P a g e any addition in the assessee’s hands ought to be confined to that based on the specific seized incriminating material only. It is in this factual backdrop that the department could hardly dispute the clinching fact that the learned lower authorities have nowhere made it clear in their respective findings that the assessee’s alleged unexplained investments etc. made in its hands, are based on any seized material only. We thus quote PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC) to conclude that the impugned assessments are not sustainable in law once it fails test of validity in the foregoing terms. Ordered accordingly.
We wish to make it clear before parting that the assessee has also raised other twin legal issues that it is not a searched entity as per the original search warrant and the learned prescribed authority’s approval under section 153D of the Act also does not satisfy the rigor of law. The same stand rendered academic once we quash the impugned assessments in the foregoing terms. The assessee’s remaining pleadings on merits herein stand rendered academic.