DCIT, NEW DELHI vs. M/S. GEN X COMMODITIES (P) LTD., NEW DELHI

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ITA 3326/DEL/2016Status: DisposedITAT Delhi31 January 2020AY 2007-084 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in deleting the additions, as the assessments were concluded and no incriminating material was found during the search. The decision of the Delhi High Court in CIT Vs. Kabul Chawla was followed.

What were the facts?

The assessee's assessments for AY 2007-08 and 2009-10 were reopened under Section 153A following a search on the Jaypee Group. The Assessing Officer made significant additions, but the CIT(A) deleted them, finding the assessments to be concluded and the additions not based on incriminating material.

What were the issues?

Whether additions made under Section 153A are valid when the assessment is concluded and no incriminating material is found during the search.

Which sections of the Income-tax Act were involved?

Section 153A

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 BENCH “D”: NEW DELHI

Before: MS. SUCHITRA KAMBLE & SHRI PRASHANT MAHARISHI

For Appellant: Shri Ved Jain, Adv.; &, Shri Akshit Goel, C. A
For Respondent: Shri J. K. Mishra [CIT] – DR;, Shri Ved Jain, Adv.; &, Shri Akshit Goel, C. A
Hearing: 07/01/2020Pronounced: 31/01/2020

and 3327 (Del) of 2016 for assessment years 2007-08 and 2009-10 against the order of the ld. Commissioner of Income Tax (Appeals)-30, New Delhi, dated 30.03.2016 for both the years.

2.

The facts in both the cases in both these years also relate to search on Jaypee Group dated 30.03.2012. Pursuant to search assessment under section 153A of the Income Tax Act, 1961 (the Act) for assessment year 2007-08 was passed on 31.03.2015 determining total income of the assessee at Rs.6,67,18,548/- against the assessed income as per order dated 31.12.2009 of Rs.1,73,37,891/-.

3.

Similarly for assessment year 2009-10 assessment under Section 153A of the Act was passed on 31.03.2015 determining total income of the assessee at Rs.65,73,74,610/- against the originally assessed income by order dated 19.12.2011 at Rs.1,62,91,890/-.

4.

For both the years appeals were preferred before the learned CIT (Appeals) who held that these are concluded assessments and not abate as on the date of search. He found that additions made by the learned Assessing Officer were not based on any incriminating document found during the course of search. Therefore, he deleted the same following the decision of the Hon’ble Delhi High Court in CIT Vs. Kabul Chawla 61 taxmann.com 412 (Del).

5.

For both the years Assessing Officer is in appeal stating that the decision of the Hon’ble Delhi High Court has not been accepted by the Revenue and are challenged before the Hon’ble Supreme Court by filing an SLP. The learned Authorized Represetative supported the order of the learned CIT (Appeals).

6.

We have carefully considered the rival contentions and perused the orders of the lower authorities. Apparently in this case both the assessments are concluded assessments and additions have been made by the learned Assessing Officer without showing any incriminating material found during the course of search. The learned CIT (Appeals) relying on the decision of the Hon’ble Delhi High Court deleted the same. Even at the stage of arguments before us the Revenue could not show existence of any incriminating material as well as that the assessments are not concluded. In view of this we do not find any infirmity in the order of the learned CIT (Appeals) in following the decision of the Hon’ble Delhi High Court in CIT Vs. Kabul Chawla (supra). Thus, the order of the learned CIT (Appeals) are confirmed for both the years and appeal of the Revenue for both the years are dismissed.

Order pronounced in the open court on : 31/01/2020.

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