KHEM CHAND PAWAN KUMAR SARAF P.LTD.,MEERUT vs. JCIT(OSD)CC-1, KANPUR

PER ANADEE NATH MISSHRA:A.M.

(A)
The appeals filed by Shri Shyam Infra P. Ltd. are against the impugned consolidated order of learned CIT(A) dated 25/01/2024. The appeal vide I.T.A. No.174/Lkw/2024 filed by the assessee and the appeal vide I.T.A. No.204/Lkw/2024 filed by Revenue are the cross appeals against the impugned appellate order of learned CIT(A) dated 29/01/2024. The grounds raised by the assessees and Revenue are as under:

I.T.A. No.164/Lkw/2024 (Assessment year 2015-16)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
3

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
4

I.T.A. No.167/Lkw/2024 (A.Y. 2018-19)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
5

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
6

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
7

I.T.A. No.168/Lkw/2024 (A.Y. 2019-20)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
8

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
9

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
10

I.T.A. No.169/Lkw/2024 (A.Y. 2020-21)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
11

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
12

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
13

I.T.A. No.170/Lkw/2024 (A.Y. 2021-22)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
14

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
15

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
16

I.T.A. No.174/Lkw/2024 (A.Y. 2021-22)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
17

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
18

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
19

I.T.A. No.204/Lkw/2024 (A.Y. 2021-22)

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
20

(B)
In respect of appeals filed by Shri Shyam Infra Pvt. Ltd. vide I.T.A.
Nos. 164, 167 – 169/Lkw/2024 for assessment years 2015-16, 2018-19,
2019-20 and 2020-21, the learned Counsel for the assessee submitted at the time of hearing that the ground No. 9 taken by the assessee in these appeals regarding assessment orders being barred by limitation be taken up first and decided. He placed reliance on the order of Hon'ble Madras High
Commissioner of Income-tax [2023] 157 taxmann.com 312 (Madras) and argued that the assessment orders were barred by limitation having regard to provisions of section 153B of the I. T. Act. The learned Departmental
Representative did not accept that the assessment orders were barred by limitation. Moreover, we find that this issue has not been decided in the impugned order of learned CIT(A). The learned CIT(A) has decided the appeals of the assessee on merits and not on the issue whether the I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
21

assessment orders were barred by limitation. Further, factual verification of relevant facts from original records is necessary, such as date on which the last warrant of authorization for search u/s 132 was executed, and date on which the books of account, documents or assets seized in the course of action u/s 132 of the Act were handed over to the Assessing Officer. These facts are not available with certainty on records of the ITAT presently. In view of the foregoing, the appeals filed by the assessee Shri Shyam Infra
Pvt. Ltd. for assessment years 2015-16, 2018-19, 2019-20 and 2020-21 are restored back to the file of the learned CIT(A) with the direction to decide the issue whether the assessment orders were barred by limitation, in accordance with law, after making proper factual verification of relevant facts from records, and after providing reasonable opportunity to the assessee. If this issue is decided against the assessee by learned CIT(A), then the assessee will be at liberty to raise grounds of appeal on merits of the additions, in Income Tax Appellate Tribunal.

(C)
In the appeals for assessment year 2021-22 in the case of Shri Shyam
Infra Pvt. Ltd. and Khem Chand Pawan Kumar Saraf Pvt. Ltd. for assessment year 2021-22, vide I.T.A. Nos. 170, 174, 204/Lkw/2024, the learned Counsel for the assessee submitted that the additions made were not sustainable because the overall total disclosure made by the assessees by way of income disclosed in returns filed by the assessees were sufficient to cover the additions made by the Assessing Officer. In response to specific query from the Bench, learned Counsel for the assessee submitted that overall total disclosures made by the assessees may not have been exactly under the heads on which additions have been made in the assessment order but the overall amounts of disclosure by way of income declared in the returns of income was sufficient to account for the additions made by the Assessing Officer. The learned D.R. placed reliance on the assessment

I.T.(SS)A. Nos.164 & 167 to 170/Lkw/2024
Assessment Years:2015-16 & 2018-19 to 21-22
22

order and the order of learned CIT(A). We find that this aspect also has not been decided by the learned CIT(A). Whether the overall total amount of disclosures made by the assessees by way of income declared in returns of income was adequate to cover the additions made in the assessment orders are under specific heads, claims on which proper factual verification is required. In the absence of such verification by learned CIT(A) and as the relevant facts are not available with certainty on the record of the ITAT, this aspect should be first decided by learned CIT(A), in the fitness of things.
Therefore, the impugned appellate orders of learned CIT(A) are set aside and the CIT(A) is directed to pass fresh order in accordance with law after proper factual verification as aforesaid, and providing reasonable opportunity to the assessee.

(D)
In the result, all the appeals are partly allowed for statistical purposes.

(Order pronounced in the open court on 31/10/2025) . .
(KUL BHARAT) (ANADEE NATH MISSHRA)
Vice President Accountant Member

Dated:31/10/2025
*Singh

Copy of the order forwarded to :