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Facts
The appeals by the assessee and cross-appeals by the revenue pertained to assessment years 2013-14 to 2016-17. The core issue was the validity of assessments framed under Section 143(3) read with Section 153A of the Act, following a search action.
Held
The Tribunal found merit in the assessee's argument that the assessments were invalid as they were not 'unabated' and no additions were made based on seized material, citing a Supreme Court judgment. Consequently, the assessments were quashed.
Key Issues
The primary issue was the validity of assessments framed under Section 153A of the Income Tax Act, particularly when the original assessments were not unabated and no additions were made based on seized material.
Sections Cited
143(3), 153A
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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. Naveen Chandra
Asstt. Year : 2016-17 M/s P. S. Enterprises, Vs DCIT, 267, Loha Mandi, Bulandshahr Road, Central Circle, Ghaziabad-201010 Ghaziabad-201002 (APPELLANT) (RESPONDENT) PAN No. AACFP8035G : Asstt. Year : 2013-14 : Asstt. Year : 2014-15 ITA No. 13/Del/2023 : Asstt. Year : 2015-16 ITA No. 14/Del/2023 : Asstt. Year : 2016-17 DCIT, Vs M/s P. S. Enterprises, Central Circle, 267, Loha Mandi, Bulandshahr Ghaziabad-201002 Road, Ghaziabad-201010 (APPELLANT) (RESPONDENT) PAN No. AACFP8035G Assessee by : Dr. Rakesh Gupta, Adv. & Sh. Deepesh Garg, Adv. Revenue by : Ms. Nimisha Singh, CIT-DR Date of Hearing: 08.05.2025 Date of Pronouncement: 16.05.2025 ORDER Per Bench: The instant batch of eight appeals pertains to the single assessee herein namely, M/s P. S. Enterprises. All other relevant details thereof stand tabulated as under:
ITA Nos. 2914 to 2917/Del/2022 2 to 14/Del/2023 P. S. Enterprises Sl. A.Y. Respondent Order passed Proceedings No. against u/s 1-2 2013-14 2914/Del/2022 P. S. DCIT CIT(A), Kanpur-4 143(3)/153A Enterprises DIN & order No. ITBA/APL/M/250/20 11/Del/2023 ACIT P. S. 22-23 / Enterprises 1046343707(1) Dated 10.10.2022 3-4 2014-15 2915/Del/2022 P. S. DCIT CIT(A), Kanpur-4 143(3)/153A Enterprises DIN & order No. 12/Del/2023 ACIT P. S. ITBA/APL/M/250/ Enterprises 2022-23 / 1046343793(1) Dated 10.10.2022 5-6 2015-16 2916/Del/2022 P. S. DCIT CIT(A), Kanpur-4 143(3)/153A Enterprises DIN & order No. ITBA/APL/M/250/20 13/Del/2023 ACIT P. S. Enterprises 22-23 / 1046343920(1) Dated 10.10.2022 7-8 2016-17 2917/Del/2022 P. S. DCIT CIT(A), Kanpur-4 143(3)/153A Enterprises DIN & order No. ITBA/APL/M/250/20 14/Del/2023 ACIT P. S. Enterprises 22-23 / 1046347773(1) Dated 10.10.2022
Heard both the parties at length. Case files perused.
Learned counsel submits at the outset that the assessee’s and Revenue’s four cross appeals each i.e. to to 14/Del/2023; for assessment years 2013-14 to 2016-17, respectively, involve the first and foremost issue of validity of all the corresponding assessments dated 29.09.2021 framed u/s 143(3) r.w.s. 153A of the Act arising from the department’s search action dated 30.07.2018 in M/s P. S. Enterprises group of cases.
It is in this factual backdrop that the Revenue could hardly dispute the clinching factual position that all the impugned four assessment years 2013-14 to 2016-17, are to 2917/Del/2022 3 to 14/Del/2023 P. S. Enterprises “unabated” ones wherein no addition at all has been made by the learned lower authorities which is based on the specific seized material in light of PCIT vs. Abhisar Buildwell P. Ltd. (2023) 454 ITR 212 (SC). We thus see merit in the assessee’s instant first and foremost legal argument to quash all these four assessments dated 29.09.2021 in very terms.
All other pleadings on merit in these cases stand rendered academic.
To sum up, these assessee’s four appeals to 2917/Del/2022 are allowed and Revenue’s as many cross appeals to 14/Del/2023 are dismissed in above terms. A copy of this common order be placed in the respective case files.