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Facts
The appeals were filed by the department against orders of the CIT(A) which allowed appeals filed by the assessee. The CIT(A) relied on a Rajasthan High Court decision regarding the invalidity of notices issued under Section 148 instead of Section 153C for search and seizure cases.
Held
The Tribunal held that the notices issued by the Assessing Officer were not sustainable as they should have been issued under Section 153C and not Section 148, as per the procedure for search and seizure cases. The Tribunal found no illegality in the CIT(A)'s order allowing the assessee's appeals.
Key Issues
Whether notices issued under Section 148 were valid when the facts and circumstances required notices under Section 153C in cases of search and seizure.
Sections Cited
148, 153C, 153D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR
Before: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1157/JPR/2024
lquokbZ dh rkjh[k@Date of Hearing : 15/05/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 15/05/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . This common order is to dispose of the above captioned two appeals filed by the department, as common issues are involved, and as such & 1158/JPR/2024 K.P. Exports Pvt. Ltd, Jaipur. Learned DR for the department-appellant and Ld. AR for the respondent have put forth common submissions in respect of both the appeals together.
First mentioned appeal relates to the assessment year 2013-14, whereas the second mentioned appeal relates to the assessment year 2015-16.
Each appeal arises out of order dated 12.07.2024, passed by Learned CIT(A).
Today, when these appeals have been taken up for hearing, Ld. AR for the appellant has presented copy of notice dated 30.01.2025 of the Act, recently issued by the department to the assessee in respect of the two assessment years under consideration i.e. 2013-14 and 2015-16.
Vide impugned order, Learned CIT(A) allowed two separate appeals filed by the assessee, while placing reliance on the decision of our own Hon’ble High Court in Shyam Sunder Khandelwal v. ACIT, (2024) 161 taxmann.com 255 (Rajasthan), DB Civil Writ Petition No. 18363 of 2019 and others, holding that the additions made by the Assessing Officer, in respect of each assessment year i.e. 2013-14 and 2015-16 were legally not & 1158/JPR/2024 K.P. Exports Pvt. Ltd, Jaipur. sustainable on the technical ground that notices issued by the Assessing Officer to the assessee were issued u/s 148 of the Act, whereas in the given facts and circumstance, notices u/s 153C of the Act were required to be issued, in view of procedure prescribed u/s 153C and 153D for assessment in cases of search and seizure.
In view of the above decision by our own Hon’ble High Court, which squarely applies to the facts of the present two appeals, we do not find any illegality or irregularity in the impugned orders passed by Learned CIT(A) whereby two appeals filed by the same assessees have been allowed, while setting aside the two assessment orders.
Even otherwise, as noticed above, department has already issued notices dated 30.1.2025 to the assessee in respect of each assessment year under consideration. This goes to suggest that the department has accepted the decision by our own Hon’ble High Court on the point of illegality of notices, which were earlier issued by the department to the assessee.
Result 8. In view of the above discussion, both appeals filed by the department are hereby dismissed.
& 1158/JPR/2024 K.P. Exports Pvt. Ltd, Jaipur. Copy of the common order be placed in the connected appeal file. Files be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 15/05/2025.
Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 15/05/2025 *Santosh आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- DCIT, Central Circle-4, jaipur. 1. izR;FkhZ@ The Respondent- K.P. Exports Pvt. Ltd., Jaipur. 2. 3. vk;djvk;qDr@ The ld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File & 1158/JPR/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत