Pr. Commissioner Of Income Tax (Central) vs. M/S Great Galleon Ventures Ltd.

PDF · subscribers
ITA/222/2022HC Madhya Pradesh02 February 2023Bench: HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI3 pages
For Petitioner: Veena Mandlik
AI SummaryDismissed

What did the High Court hold?

The High Court held that the substantial question of law raised by the appellant (revenue) was identical to one considered by a Division Bench of the same court at its Gwalior Bench in ITA No. 21/2019, ITA No. 31/2019, and ITA No. 32/2019 (Principal Commissioner of Income Tax Vs. Gahoi Foods Private Ltd). In that earlier case, decided on 12.07.2019, the Court had dismissed the appeals, holding that in the given facts where no incriminating documents were found during the search, the order under appeal could not be considered illegal. Therefore, following the precedent set by the Gwalior Bench, the High Court found no substantial question of law in the present appeal. The appeal was dismissed.

What were the facts?

The Pr. Commissioner of Income Tax (Central), Bhopal (the appellant/revenue) filed an appeal before the High Court of Madhya Pradesh at Indore against an order dated 23.12.2021 passed by the Income Tax Appellate Tribunal (ITAT), Bench Indore. The ITAT's order was in Revenue's Appeal No. 67/Ind/2021 for the Assessment Year 2015-16. The appeal before the ITAT arose from orders passed by the Commissioner of Income Tax (Appeals), which dealt with additions made by the Assessing Officer. These additions were based on presumptive income and estimated income, and it was not disputed that no incriminating material was found during the search.

What were the issues?

1. Whether, in the absence of any incriminating documents seized during the course of a search, the Assessing Officer is justified in making additions in non-abated assessment orders under Section 153A read with Section 143(3) of the Income Tax Act, 1961? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (M/s Great Galleon Ventures Ltd.) before the High Court. However, the underlying issue suggests the assessee would argue against additions made without incriminating material. Revenue's Contentions: The revenue, as the appellant, raised the substantial question of law concerning the validity of additions made under Section 153A read with Section 143(3) in the absence of seized incriminating documents. The revenue relied on the fact that the assessment was made under these sections.

Which sections of the Income-tax Act were involved?

Section 260A,Section 153A,Section 143(3)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI & HON'BLE SHRI JUSTICE PRAKASH CHANDRA GUPTA ON THE 2nd OF FEBRUARY, 2023 INCOME TAX APPEAL No. 222 of 2022 BETWEEN:- PR. COMMISSIONER OF INCOME TAX (CENTRAL) AAYKAR BHAWAN HOSHANGABAD ROAD BHOPAL (MADHYA PRADESH) .....APPELLANT (MS VEENA MANDLIK, LEARNED COUNSEL FOR THE APPELLANT) AND M/S GREAT GALLEON VENTURES LTD. ADD: 308-309, PRINCES BUSINESS SKYPARK VIJAY NAGAR, INDORE (MADHYA PRADESH) .....RESPONDENTS (SHRI IBRAHIM KANNODWALA, LEARNED COUNSEL FOR THE RESPONDENT [R-1]. This appeal coming on for admission this day, JUSTICE SUSHRUT ARVIND DHARMADHIKARI passed the following: ORDER This appeal u/S 260A of the Income Tax Act 1961(for short, the Act of 1961 hereinafter) is directed against the order dated 23.12.2021 passed by the Income Tax Appellate Tribunal, Bench Indore in ITA No. 67/Ind/2021(Revenue's Appeal) for the Assessment Year 2015-16. The substantial question of law which has been raised by the appellant in this appeal is "whether in absence of any incriminating documents seized during the course of search, the Assessing Officer is justified in making the addition in 1 Signed by: SEHAR HASEEN Signing time: 2/3/2023 6:27:16 PM Signature Not Verified non-abated assessment orders u/S 153-A r/W Sec 143(3) of the Act of 1961." The assessment is u/S 153A r/W Sec 143(3) of the Act of 1961 for the assessment year 2015-16. Learned Tribunal was in seisin with the appellant and cross appeals arising from respective orders passed by the Commissioner Income Tax(Appeals). The appeal before the CIT(Appeals) was directed against the addition of income by the Assessing Officer taking production on presumptive basis and working out estimated income. The factum of addition not being based on any incriminating material found during the search is not disputed. Exactly identical substantial question of law came up for consideration before the Division Bench of this Court at Gwalior Bench in ITA No. 21/2019, ITA No. 31/2019 and ITA No. 32/2019(Principal Commissioner of Income Tax Vs. Gahoi Foods Private Ltd). Vide order dated 12.07.2019, these appeals were disposed of holding that in the given facts of the present case, as no incriminating documents during the course of search were found, the order in appeal cannot be said to have suffered any illegality as would give rise to proposed substantial question of law. Consequently, the appeals were dismissed. In view of the fact that the aforesaid question of law was dealt by the Division Bench of this Court in the aforesaid cases, no different view can be taken in this appeal. Accordingly, finding no substantial question of law, this appeal fails and is hereby dismissed. 2 Signed by: SEHAR HASEEN Signing time: 2/3/2023 6:27:16 PM Signature Not Verified (S. A. DHARMADHIKARI) JUDGE (PRAKASH CHANDRA GUPTA) JUDGE sh

3 Signed by: SEHAR HASEEN Signing time: 2/3/2023 6:27:16 PM Signature Not Verified

More judgments on Section 153A

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

Recent GST High Court judgments

Search GST case law →