ITO, WARD-5(2)(4), AHMEDABAD vs. M/S. SHREE TIRUPATI DEVELOPERS, AHMEDABAD

PDF · subscribers
ITSSA 319/AHD/2018Status: DisposedITAT Ahmedabad13 March 2024AY 2012-1312 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the assessment framed under Section 143(3) read with Section 153A of the Income Tax Act, 1961, was not sustainable. The Tribunal noted that Section 153A proceedings are special proceedings that commence with a non-obstante clause and can only be framed if a search under Section 132 has been conducted. The records indicated that only a survey under Section 133A had taken place, not a search. Therefore, the AO had exceeded its jurisdiction by framing the assessment under Section 153A. The additional ground raised by the assessee challenging the validity of the assessment was allowed. Consequently, the Revenue's appeal was dismissed. The Tribunal did not delve into the merits of the additions deleted by the CIT(A) regarding unexplained investment income and unexplained cash, as the primary issue of jurisdiction rendered the assessment invalid. The ratio decidendi is that an assessment under Section 153A is vitiated if initiated without a preceding search under Section 132.

What were the facts?

This case involves appeals by both the Income Tax Officer (Revenue) and M/s. Shree Tirupati Developers (Assessee) for Assessment Year 2012-13. The appeals stem from an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] on September 25, 2018, which dealt with assessment proceedings under Section 143(3) read with Section 153A of the Income Tax Act, 1961. The Revenue's appeal challenges the CIT(A)'s deletion of additions amounting to Rs. 2,63,48,000/- on account of unexplained investment income and Rs. 2,22,00,000/- on account of unexplained cash. The Assessee filed a cross-objection supporting the CIT(A)'s order and later an additional ground challenging the validity of the assessment framed under Section 153A.

What were the issues?

1. Whether the assessment framed under Section 143(3) read with Section 153A of the Income Tax Act, 1961, is valid when no search under Section 132 was conducted, but only a survey under Section 133A was carried out? (Question of law and fact, concerning Section 153A). 2. Whether the CIT(A) erred in law and on facts in deleting the addition of Rs. 2,63,48,000/- made on account of unexplained investment income? (Question of law and fact, concerning Section 69C). 3. Whether the CIT(A) erred in law and on facts in deleting the addition of Rs. 2,22,00,000/- made on account of unexplained cash? (Question of law and fact, concerning Section 69). Assessee's Contentions: - The assessment under Section 153A is invalid as no search was conducted; only a survey under Section 133A took place. Proceedings should have been under Section 143(3) or 147. (Relied on survey documents). - The CIT(A) correctly deleted the additions as the assessee had placed material evidence and the Assessing Officer (AO) conducted no further enquiry to negate it. Revenue's Contentions: - The CIT(A) erred in deleting the additions made by the AO on account of unexplained investment income and unexplained cash. - The order of the CIT(A) should be set aside and the AO's order restored.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A,Section 133A,Section 132,Section 69C,Section 68,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri Dhiren Shah, with Ms. Nupur Shah, A.Rs
For Respondent: Shri Sudhendu Das, CIT-DR

आदेशकीप्र्ि्िगे्े र/Copy of the Order forwarded to : 1. अिीिार्/ The Appellant 2. प्यर्/ The Respondent. 3. संबं्िरआयकरआयुक/ Concerned CIT 4. आयकरआयुक(अिीि) / The CIT(A) 5. िभागीयप्र्न्ि, आयकरअिीिीयअ्िकरण/ DR, ITAT, 6. गार्फाईि/ Guard file.

आदेशानुसार/BY ORDER,

उि/सहायकिंजीकार(Dy./Asstt.Registrar) आयकरअिीिीयअ्िकरण, अहमदाबाद/ ITAT, Ahmedabad

I.T(SS).A No. 319/Ahd/2018 & CO 135/Ahd/2019 A.Y. 2012-13 Page No. 12 ITO vs. M/s. Shree Tirupati Developers & M/s Shree Tirupati Developers vs. ITO

Annexure-1

More judgments on Section 153A

All 18,957 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →