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

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ITA/223/2022HC 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 an identical substantial question of law had been considered by a Division Bench of the same Court at the 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 case, vide order dated 12.07.2019, the appeals were disposed of holding that since no incriminating documents were found during the search, the order under appeal could not be considered illegal. Consequently, those appeals were dismissed. Following this precedent, the High Court found no substantial question of law in the present appeal and dismissed it. The operative direction is the dismissal of the appeal.

What were the facts?

The appeal is filed by the Pr. Commissioner of Income Tax (Central), Bhopal against an order dated 23.12.2021 passed by the Income Tax Appellate Tribunal, Bench Indore. The Tribunal's order dealt with Revenue's Appeal No. 68/Ind/2021 and Assessee's Appeal No. 114/Ind/2020 for the Assessment Year 2016-17. The Assessing Officer had made an addition to the assessee's income on a presumptive basis, working out an estimated income. The fact that this addition was not based on any incriminating material found during a search is not disputed. The High Court is considering the appeal against the Tribunal's decision.

What were the issues?

1. Whether, in the absence of any incriminating documents seized during a search, the Assessing Officer is justified in making an addition in non-abated assessment orders under Section 153A read with Section 143(3) of the Income Tax Act, 1961? The Assessee's contention is not recorded. The Revenue's contention, as framed in the substantial question of law, is that the Assessing Officer is not justified in making such an addition without incriminating material. The High Court is to decide if the Tribunal's order, which presumably upheld the assessee's position, is legally sound.

Which sections of the Income-tax Act were involved?

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

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. 223 of 2022 BETWEEN:- PR. COMMISSIONER OF INCOME TAX (CENTRAL) AAYAKAR BHAWAN, HOSHANGABAD ROAD, BHOPAL (M.P.) (MADHYA PRADESH) .....APPELLANT (MS VEENA MANDLIK, LEARNED COUNSEL FOR THE APPELLANT). AND M/S GREAT GALLEON VENTURES LTD. ADD: 308-309, PRINCESS 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. 68/Ind/2021(Revenue's Appeal) and ITA No. 114/Ind/2020(Assessee's Appeal) for the Assessment Year 2016-17. 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 1 Signed by: SEHAR HASEEN Signing time: 2/3/2023 6:27:16 PM Signature Not Verified the course of search, the Assessing Officer is justified in making the addition in 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 2016-17. 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

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