THE DCIT, CENTRAL CIRCLE-2, VADODARA vs. SMT. MRUNALIBEN JIGAR PATEL, VADODARA

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ITSSA 227/AHD/2019Status: DisposedITAT Ahmedabad17 October 2024AY 2013-1415 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that for unabated assessment years, additions under Section 153A can only be made if supported by incriminating material found during the search. The addition of Rs. 72,600/- under Chapter VI-A was deleted by the CIT(A) because it was based on an examination of the computation of income without any incriminating material. The Tribunal found no merit in the Revenue's ground and upheld the CIT(A)'s deletion. Regarding the addition under Section 50C, the Tribunal ruled that duly registered sale deeds, which were part of the assessee's regular disclosed transactions, do not constitute incriminating material in the absence of evidence of undisclosed income or intent to evade taxes. The Tribunal upheld the CIT(A)'s decision to delete the addition of Rs. 5,38,87,550/-, finding the Revenue's contention that sale deeds were incriminating material to be untenable. The Tribunal upheld the CIT(A)'s order in its entirety.

What were the facts?

This appeal by the Revenue concerns Assessment Year 2013-14, arising from an order of the CIT(A) dated 21.02.2019. The assessment was framed under Section 153A read with Section 143(3) of the Income Tax Act, 1961, following a search and seizure operation on 13.11.2014. The Assessing Officer (AO) made several additions: Rs. 72,600/- for disallowance of deduction under Chapter VI-A, Rs. 1,02,500/- for agricultural income, Rs. 31,44,828/- for unexplained bank credits, and Rs. 5,38,87,550/- under Section 50C for property sale consideration. The CIT(A) deleted most additions, upholding only the agricultural income addition. The Revenue is aggrieved by the deletions.

What were the issues?

1. Whether, in an unabated assessment year, additions can be made under Section 153A without incriminating material found during search, specifically concerning the disallowance of Rs. 72,600/- under Chapter VI-A? The Revenue argues that the assessee failed to produce documentary evidence for investments and that the assessment year remained unabated. The assessee contends that for unabated years, additions under Section 153A require incriminating material, which was absent. 2. Whether, in an unabated assessment year, additions under Section 50C of Rs. 5,38,87,550/- are valid when based on sale deeds found during search, despite the assessment year being unabated? The Revenue argues that property transactions are covered under Section 2(47) and Section 50C is applicable. The assessee argues that duly registered sale deeds, part of regular disclosed transactions, do not constitute incriminating material for unabated assessment years, citing precedents like PCIT vs. Abhisar Buildwell P. Ltd. and PCIT vs. Saumya Construction.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 132,Section 139(1),Section 50C,Section 2(47)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ D ” BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE & SHRI MAKARAND V. MAHADEOKAR

For Appellant: Shri Tushar Hemani, Sr.Advocate &, Shri Parimalsinh B. Parmar, AR
Hearing: 10/10/2024Pronounced: 17/10/2024

आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : अपीलाथ% / The Appellant 1. #&थ% / The Respondent. 2. संबंिधत आयकर आयु' / Concerned CIT 3. आयकर आयु' अपील 4. ( ) / The CIT(A)- िवभागीय #ितिनिध आयकर अपीलीय अिधकरण राजोकट/DR,ITAT, Ahmedabad, 5. , , गाड� फाईल / 6. Guard file.

आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad

1.

Date of dictation (word processed by Hon’ble AM in his laptop) : 15.10.2024 15.10.2024 2. Date on which the typed draft is placed before the : Dictating Member. 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating : Member for pronouncement. 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the : 17.10.24 Sr.P.S./P.S. 7. Date on which the file goes to the Bench Clerk. : 17.10.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar : for signature on the order. 10. Date of Despatch of the Order :

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