ASHA DEVI,KOLKATA vs. ACIT, KOLKATA

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ITSSA 63/KOL/2023Status: DisposedITAT Kolkata27 June 2023AY 2011-1225 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal allowed the appeals for AY 2009-10 to 2012-13 and AY 2015-16. For AY 2013-14, the appeal was allowed in terms discussed in the cited precedent. For AY 2014-15, the appeal was partly allowed. The Tribunal relied on its earlier decisions in the cases of Amar Singh vs. ACIT and Bharat Singh vs. ACIT, which involved identical facts and co-owners of the same properties. The reasoning was that the issues raised were squarely covered by those precedents. Specifically, for AY 2015-16, the Tribunal noted that the assessment was time-barred, and no incriminating material was found, rendering the Section 153C assessment without jurisdiction. The additions made by the AO for AY 2015-16 were ordered to be deleted. The judgment also indicated that for AY 2014-15, additions were sustained to the extent of Rs. 24,22,066/-, after considering deductions and allowing adjustment of taxes paid for earlier years against taxes due for AY 2014-15, in view of quashed assessments for AY 2009-10 to 2012-13 and sustained additions for AY 2013-14.

What were the facts?

The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, heard seven appeals filed by Asha Devi against the ACIT, Central Circle-1(1), Kolkata, for Assessment Years (AY) 2009-10 to 2015-16. These appeals arose from assessments framed under Section 153C of the Income Tax Act, 1961, following a search and seizure operation on Rupa Singh & Ors. Group on April 3, 2014. The assessee was identified as a co-owner of four house properties generating substantial rental income. Assessment orders were passed on December 15, 2016, with additions made by the Assessing Officer (AO) over the disclosed income, which were confirmed by the Commissioner of Income Tax (Appeals). The assessee challenged these orders before the Tribunal.

What were the issues?

1. Whether the initiation of proceedings under Section 153C of the Income Tax Act, 1961, was erroneous and bad in law? (Question of law) 2. Whether the assessment order was barred by limitation and beyond jurisdiction? (Question of law) 3. Whether the Assessing Officer (AO) travelled beyond his jurisdictional limit under Section 153C by estimating rental income, as the addition did not emanate from incriminating materials found during the search? (Question of mixed law and fact) 4. Whether the AO was justified in making an estimated addition on the basis of extrapolation from House Property income? (Question of mixed law and fact) Assessee's Contentions: - The initiation of proceedings under Section 153C was erroneous and bad in law, citing the 'satisfaction note' date as the relevant date for initiation and relying on CIT vs. RRJ Securities Ltd. (Delhi High Court). - The assessment order was barred by limitation and beyond jurisdiction. - The AO exceeded his jurisdictional limits under Section 153C by estimating rental income not supported by incriminating materials found during the search. - The AO's estimated addition was not justified. Revenue's Contentions: - The judgment does not record specific contentions for the revenue on these grounds.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3),Section 132,Section 133A,Section 24(1),Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: SHRI SANJAY GARG, HON’BLE & DR. MANISH BORAD, HON’BLE

For Appellant: Shri Manish Tiwari, A/R
Hearing: 14/06/2023Pronounced: 27/06/2023

आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. संबंिधत आयकर आयु� / Concerned Pr. CIT 4. आयकर आयु� अपील / The CIT(A)- ( ) 5. िवभागीय �ितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाड� फाई/ Guard file.

आदेशानुसार/ BY ORDER, TRUE COPY

Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata

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