THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. RAMESHBHAI JIVRAJ DESAI

PDF · subscribers
TAXAP/330/2020HC GujaratGJHC24038032202023 October 2020Author: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the question proposed by the Revenue is squarely covered by a previous order of the same Court dated September 18, 2020, in Tax Appeal No. 216 of 2020. While the specific reasoning of the previous order is not detailed in this judgment, the implication is that the Court had already ruled on the issue of whether an assessment under Section 153A can be made for a concluded and non-abated assessment year in the absence of incriminating material. Based on this precedent, the High Court found no merit in the present appeal. The operative direction was to dismiss the appeal.

What were the facts?

This is a Tax Appeal filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, dated January 17, 2020. The appeal pertains to Assessment Year 2008-09. The core of the dispute revolves around whether an assessment under Section 153A of the Income Tax Act, 1961, can be made for an assessment year that was already concluded and had not abated at the time of a search operation. The Revenue is challenging the ITAT's decision on this point.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in holding that in absence of any incriminating material related to the given assessment year found during search, assessment u/s. 153A of the Act cannot be made for that assessment year for which assessment has been concluded on the date of search and not abated? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal is at the instance of the Revenue, and the proposed question is framed by the Revenue. Revenue's Contention: The Revenue contends that the ITAT erred in its finding. The proposed question suggests that the Revenue believes an assessment under Section 153A can be made even if no incriminating material is found for a concluded and non-abated assessment year. The Revenue is seeking to challenge the ITAT's interpretation of Section 153A in such circumstances.

Which sections of the Income-tax Act were involved?

Section 260A,Section 153A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/330/2020 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 330 of 2020 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX Versus RAMESHBHAI JIVRAJ DESAI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA Date : 23/10/2020

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA)

1.

This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short “the Act, 1961”) is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad “C” Bench, Ahmedabad, dated 17th January, 2020 in IT(SS)A No. 129/Ahd/2017 for Assessment Year 2008-09. The Revenue has proposed the following question for the consideration of this Court. “Whether the Appellate Tribunal is right in law and on facts in holding that in absence of any incriminating material related to the given assessment year found during search, assessment u/s. 153A of the Act cannot be made for that assessment year for which assessment has been concluded on the date of search and not abated?”

2.

We have heard Mr. Karan Sanghani, learned counsel appearing for the Revenue. C/TAXAP/330/2020 ORDER

3.

The question as proposed by the Revenue is squarely covered by the order passed by this Court dated 18th September, 2020 in the Tax Appeal No. 216 of 2020. 4. In view of the above, this appeal fails and is hereby dismissed. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) DIPTI PATEL/A.M.PIRZADA

More judgments on Section 153A

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

Recent GST High Court judgments

Search GST case law →