Income Tax Department vs. M/S Jaideep Ispat And Alloy Pvt. Ltd.

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ITA/229/2022HC 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 in the given facts of the case, as no incriminating documents were found during the course of the search, the order under appeal could not be said to suffer from any illegality that would give rise to the substantial question of law raised. The Court relied on a previous decision of its own Division Bench 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), decided on 12.07.2019. In that case, the appeals were disposed of by holding that in the absence of incriminating documents found during the search, the order under appeal was not illegal. Consequently, the appeals were dismissed. Therefore, finding no substantial question of law, the present appeal was dismissed.

What were the facts?

The appeal is filed by the Principal Commissioner of Income Tax (Central), Bhopal, against the order dated 08.03.2022 passed by the Income Tax Appellate Tribunal, Bench Indore. The Tribunal's order pertains to ITA No. 262/Ind/2019, which was a revenue appeal for Assessment Year 2011-12. The assessment under challenge was made under Section 153A read with Section 143(3) of the Income Tax Act, 1961, for assessment years 2010-11 to 2015-16, and under Section 143(3) for Assessment Year 2016-17. The Assessing Officer had made additions to income on a presumptive basis, working out an estimated income. The fact that these additions were not based on any incriminating material found during a search is not disputed.

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 assessment orders passed under Section 153A read with Section 143(3) of the Income Tax Act, 1961? The appellant (Revenue) contends that the Assessing Officer is justified in making additions even without incriminating material, as the assessment is made under Section 153A. The respondent (Assessee) argues that additions under Section 153A must be based on incriminating material found during a search, and in its absence, no addition can be sustained. The judgment notes that the factum of additions not being based on incriminating material is not disputed.

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. 229 of 2022 BETWEEN:- PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) AAYKAR BHAWAN HOSHANGABAD ROAD BHOPAL (MADHYA PRADESH) .....APPELLANT (MS VEENA MANDLIK, LEARNED COUNSEL FOR THE APPELLANT) AND M/S JAIDEEP ISPAT AND ALLOY PVT. LTD. ADD: 103 LAXMI TOWER 576 M.G. ROAD INDORE (MADHYA PRADESH) .....RESPONDENT (NONE PRESENT FOR THE RESPONDENT) 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 08.03.2022 passed by the Income Tax Appellate Tribunal, Bench Indore in ITA No. 262/Ind/2019(Revenue's Appeal) for the Assessment Year 2011-12. 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 u/S 153A r/W Sec143(3) of the Act of 1961 is for the assessment years 2010-11 to 2015-16 and u/S 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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