M/S. A.M. MOTORS, vs. THE DEPUTY COMISSIONER OF INCOME TAX

ITA/211/2012HC KeralaKLHC01024133201223 October 2013Author: HONOURABLE MR.JUSTICE A.M.SHAFFIQUE,HONOURABLE THE CHIEF JUSTICE DR. MANJULA CHELLUR6 pages
AI SummaryDismissed

What were the facts?

The Income Tax Appellate Tribunal (ITAT) order is under challenge in this appeal filed by M/s. A.M. Motors (the assessee) against the Deputy Commissioner of Income Tax. The assessment year is not explicitly stated, but the dispute arises from a block period assessment from 1/4/1996 to 28/8/2002. The core issue stems from materials impounded during a survey conducted under Section 133A of the Income Tax Act at the assessee's premises. The assessee contends that such materials, gathered under Section 133A, cannot be used for proceedings under Section 158BD because Section 133A lacks the presumptive value associated with search and seizure under Section 132(4). The assessment proceedings for a partner, Mr. P. Mohammed Sherief, were remanded, and the assessee's assessment was initially made on a protective basis.

What did the High Court hold?

The Tribunal held that material found during a survey operation under Section 133A is independent and distinct from material found during a search and seizure operation under Section 132. While materials from a Section 133A survey might not form the basis for proceedings under Section 132 read with Section 158 (block assessment), they must be dealt with independently according to the procedure. The Tribunal's opinion was justified because the additions made in the hands of the partner, Mohammed Sherief, were remitted back for fresh assessment. In such fresh assessments, the Assessing Officer is at liberty to consider the case of the appellant assessee in accordance with the procedure under Section 132(4) read with Section 158. This does not preclude the authorities from taking independent action based on materials collected during the survey under Section 133A. Therefore, the appeal was dismissed.

What were the issues?

1. Whether material secured and impounded during a survey conducted under Section 133A of the Income Tax Act can be used for proceedings under Section 158BD, given that Section 133A does not have the same presumptive value as material obtained under Section 132(4) search and seizure? (Question of law) Assessee's contention: The material gathered under Section 133A lacks presumptive value and therefore cannot be used for proceedings under Section 158BD, which relies on materials with presumptive value as under Section 132(4). Revenue's contention: The judgment does not record specific arguments made by the revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 133A,Section 158BD,Section 132(4),Section 158BB(1),Section 132A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNE AY, THE 23RD DAY OF OCTOBER 2013/1ST KARTHIKA, 1935 ITA.No. 211 of 2012 ----------------------- AGAINST THE ORDER IN IT(SS)A.NO.22/COCH/2007 OF INCOME TAX APPEALLTE TRIBUNAL,COCHIN BENCH,COCHIN .... APPELLANT(S):RESPONDENT: ---------------------------------------------- M/S. A.M. MOTORS, VARANGODE, MALAPPURAM, PAN: AAHFA8699Q BY ADVS.SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SRI.R.SREEJITH SMT.NIVEDITA A.KAMATH RESPONDENT(S):APPELLANT: ----------------------------------------------- THE DEPUTY COMISSIONER OF INCOME TAX, CENTRAL CIRCLE, THRISSUR - 680 001. BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 23-10-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss

ITA.NO.211/2012 APPENDIX APPELLANT'S ANNEXURES: ANNEX.A: COPY OF THE ORDER OF ASSESSMENT FOR THE BLOCK PERIOD ¼/1996 TO 28/8/2002 ISSUED TO THE APPELLANT. ANNEX.B: COPY OF THE APPEALLATE ORDER DTD. 22/01/2007. ANNEX.C: COPY OF THE GR

The order continues below.

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