M/S LAKSHYA CONSULTANTS P. LTD.,NEW DELHI vs. DCIT, NEW DELHI

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ITA 6357/DEL/2016Status: DisposedITAT Delhi16 March 2020AY 2005-064 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) initially allowed the assessee's ground regarding the absence of incriminating material, stating no addition could be made. However, the CIT(A) then decided the appeal on merits and confirmed the substantive addition, leading to the appeal being partly allowed.

What were the facts?

The assessment was framed under Section 153A/144 of the IT Act, 1961, with additions on account of income from undisclosed sources and disallowance of expenditure. The assessee contended that no assessment could be made as no incriminating documents were found during the search.

What were the issues?

Whether an assessment under Section 153A can be made in the absence of any incriminating material found during a search operation.

Which sections of the Income-tax Act were involved?

Section 153A,Section 144

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES “F” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT

Hearing: 16.03.2020Pronounced: 16.03.2020

ORDER PER BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-XXVI, New Delhi, Dated 29.9.216, for the A.Y. 2005-2006.

2.

In this case assessment under section 153A/144 of the I.T. Act, 1961 was passed on 08.03.2013 by the A.O.

2 ITA.No.6357/Del./2016 M/s. Lakshya Consultants (P) Ltd., New Delhi. making addition of Rs.9.78 crores on account of income from undisclosed sources and disallowance of expenditure of Rs.66,921/-. The assessee submitted before the Ld. CIT(A) that it is a case of search and there is no reference to any incriminating document found during the course of search operation. The assessment have been framed without reference to any incriminating document or material. The assessee has relied upon several decisions in support of the contention including Judgment of Hon’ble Delhi High Court in the case of CIT vs., Kabul Chawla 380 ITR 573 (Del.). Therefore, no addition could be made in the assessment. The Ld. CIT(A) accepted the contention of assessee and allowed this ground of appeal of assessee that no addition could be made in the absence of any incriminating material. The Ld. CIT(A), thereafter, decided the appeal of assessee on merits and confirmed the substantive addition. Appeal of assessee was partly allowed.

3. The assessee in the present appeal has challenged the addition on merits. The Learned Counsel for the Assessee at the outset submitted that since no appeal

3 ITA.No.6357/Del./2016 M/s. Lakshya Consultants (P) Ltd., New Delhi. have been filed by the Department allowing the appeal of assessee on legal issue holding that no assessment could be framed under section 153A because no incriminating document was found during the course of search against the assessee, therefore, appeal of assessee is academic in nature only. He seeks permission to withdraw the appeal and an endorsement to that effect has been made on the appeal papers. In view of the above, we are of the view that since no Departmental Appeal is filed by the Department against the legal issue decided against the Revenue, therefore, the issue on merit is left with academic discussion only. We, therefore, allow the assessee to withdraw the appeal. Appeal of assessee is dismissed as withdrawn.

4.

In the result, appeal of the Assessee dismissed. Order pronounced in the open Court.

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