Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCHES: ‘F’, NEW DELHI
Before: SHRI G.D.AGRAWAL & SMT. BEENA A PILLAI
PER BEENA A PILLAI, JUDICIAL MEMBER
The present appeal has been filed by assessee against order dated 09/04/12 passed by Ld.CIT(A)-3, New Delhi for Assessment Year (A.Y.) 2005-06 on the following grounds of appeal:
1. That the Ld.CIT(A) has partly disallowed the appeal u/s 250 without appreciating the facts and circumstances of the case.
ITA 2958/Del/2012 Assessment Year 2005-06 Rangoli Buildtech Pvt.Ltd., New Delhi 2. That the Ld.CIT(A) has partly disallowed the appeal which is unlawful and unreasonable.
That on the facts and circumstances of the case and in law the action of Ld.CIT(A)-III, New Delhi in partly upholding addition of Rs.46,06,600/- out of total addition of Rs.48,28,400/- made by ld.AO out of addition u/s 69 on account of cash payment made to 30 farmers against purchase of land.
4. That on the facts and circumstances of the case and in law the action of Ld.CIT(A)-III, New Delhi in upholding addition of Rs.3,18,600/- made by ld.AO u/s 69 on account of cash payment made to Mr.Hardayal against purchase of land.
That on the facts and circumstances of the case and in law the action of Ld.CIT(A)-III, New Delhi in partly upholding addition of Rs.2,06,000/- out of total addition of Rs.3,12,800/- made by ld.AO out of addition u/s 69 on account of cash payment made to Mr.Ramphal against purchase of land.
The assessee reserves the right to add, alter, amend, substitute any ground of appeal.”
Brief facts of the case are as under: A search and seizure operation under section 132 of the Income Tax Act, 1961 (the Act) was carried out on 05/01/09 in the case of M/s Taneja-Puri group of cases in various premises. During the course of search, some documents belonging to assessee before were found from the premises covered under section 132 (1) of the Act. 2.1. Subsequently the case was centralised and notice under section 153C was issued to the assessee on 04/10/2010. 2.2. At the outset Ld.AR filed an application dated 23/11/15 for admission of following additional ground: 1) that having regard to the facts and circumstances of the case, the assumption of jurisdiction by Ld. AO under section 153C Page 2 of 7
ITA 2958/Del/2012 Assessment Year 2005-06 Rangoli Buildtech Pvt.Ltd., New Delhi is bad in law more so when as the satisfaction has not been recorded. 2) That having regard to the facts and circumstances of the case, the Ld. CIT (A) has erred in law and on facts in confirming the addition even though such addition was not based on seized material in the proceedings under section 132 of the Act. 2.3. This Tribunal vide order sheet entry dated 12/07/16 decided the application dated 23/11/15 as under: “Considering above submissions, we find that the issues raised in the above stated additional grounds are legal in nature, which go to the root of the matter (questioning the very assumption of jurisdiction under section 153C of the act by the assessing officer, non-recording of satisfaction and making addition in absence of seized material) and adjudication of which does not require consideration of any fresh material outside the record. We thus allow the application. The Ld. DR is directed to be ready with the record containing the satisfaction note, if any, recorded by the assessing officer for initiation of proceedings under section 153C of the act against the assessee, on the next date of hearing.” 2.4. Ld. Counsel submitted before us that the legal issue raised by assessee has already been admitted vide order sheet entry dated 12/07/16. He has placed on record RTI application dated 07/06/2017, filed by assessee seeking a copy of the satisfaction note prepared by AO of searched party or any other document on the basis of which proceedings under section 153C of the Act is ITA 2958/Del/2012 Assessment Year 2005-06 Rangoli Buildtech Pvt.Ltd., New Delhi initiated on assessee. The reply was issued vide order dated 06/07/17 which is reproduced hereunder:
“Order u/s 7 of the Right to Information Act, 2005 The information sought by the applicant and the reply thereon is as under. Sl. Information to be sought by applicant Reply No.
Search & seizure operation u/s 132 of However, the IT Act was carried out on 1.1.2009 in requisite information M/s Taneja Puri Group. During the is not readily course of search some documents available in this belonging to assessee were found office. from the premises. Since the applicant has preferred an appeal before Hon’ble ITAT, the applicant has required copy of satisfaction note prepared by the AO of searched party (Taneja Puri Group) or any other document on the basis of which the proceeding u/s 153C of the IT Act, 1961 is initiated on the assessee.
2.5. It is observed that the information could not be given as the requisite details were not readily available with the office.
ITA 2958/Del/2012 Assessment Year 2005-06 Rangoli Buildtech Pvt.Ltd., New Delhi 3. We therefore are inclined to allow the appeal of assessee on the legal issue raised by assessee. As the legal issue raised by assessee is allowed we do not intend to go into the merits of the case. 3.1. However, in order to safeguard the interest of revenue, we grant liberty to Department to prefer Miscellaneous Application against this order in the event satisfaction note prepared by Assessing Officer of searched party is obtained. 3.2. Accordingly the appeal filed by the assessee stands allowed.
In the result appeal filed by the assessee stands allowed. Order pronounced in the open court on 21st December, 2017.
Sd/- Sd/- (G.D.AGRAWAL) (BEENA A PILLAI) President Judicial Member Dated: 21st December, 2017.
ITA 2958/Del/2012 Assessment Year 2005-06 Rangoli Buildtech Pvt.Ltd., New Delhi