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Facts
The revenue filed appeals against multiple CIT(A) orders for assessment years 2015-16 to 2021-22, where the CIT(A) had reversed assessment orders citing no incriminating material as per the Abhishar Buildwell Pvt. Ltd. judgment. The assessments were made under section 153A following a search in a connected case (M/s Atibir Industries Company Limited) on 17.03.2021, where incriminating material (PKRB-05) related to the assessee was found in the Chartered Accountant's office. Both the assessee and the CIT-DR sought adjournments which were rejected by the Tribunal.
Held
The Tribunal rejected the adjournment applications from both parties. It found that incriminating material was indeed discovered, thus the CIT(A)'s finding of 'no incriminating material' was incorrect. Consequently, the Tribunal reversed the CIT(A)'s orders in all impugned appeals and remanded the issues back to the CIT(A) for fresh adjudication on merits, ensuring the assessee receives adequate opportunity of being heard.
Key Issues
1. Whether the CIT(A) correctly applied the principle regarding the absence of incriminating material, as per the Supreme Court's Abhishar Buildwell Pvt. Ltd. decision, given the discovery of such material during a search. 2. Whether the appeals should be adjourned based on requests from the assessee or the Departmental Representative.
Sections Cited
153A
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
आदेश / O R D E R Per Bench : These are the appeals filed by the revenue against the separate orders passed by the ld. CIT(A), Patna-3, dated 16.02.2024 & 23.02.2024 for the assessment years 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-2020, 2020-2021 & 2021-2022, respectively. 2. The assessee has filed an adjournment application for all the years under consideration stating therein as follows :-
No authorized signatory name nor details have been provided in the said adjournment application. It must be mentioned here that there is no Vakalatnama of any authorized representative of assessee has been filed in the said cases. The adjournment application being bald, the same is rejected.
The number of cases posted during the week is nearly 250, out of the same, on daily basis, nearly in 72 to 75% of the cases, adjournments are being sought. As the Bench was constituted and the same was also intimated much in advance and the adjournment has been sought in the last minute, therefore, the adjournment applications are being rejected.
It may also be worthwhile to mention here that another reason given by the ld. CIT-Departmental Representative for adjournment is that in some of the appeals, orders have been passed by the office of the impugned CIT- DR personally. Here, it is to be mentioned that in respect of the orders of the ld. CIT(A), which have been challenged by the revenue, it can be said that it would be difficult for the ld. CIT-Departmental Representative to defend such orders, in so far as he would be arguing against his own orders. But in such cases, where the orders have been passed against the assessee and the assessee is in appeal, we find no reason as to why the ld. CIT-DR would not be able to defend his own orders. In any case orders have been issued against the assessee. When this was put to the ld. CIT- DR, it was a submission that should the Tribunal pass an order reversing the order of ld. CIT(A), he could be questioned under administrative provisions. This does not stand to be a reason, in so far as the appeal provisions have been provided by the statute. It is human to err. If there is no order passed by the Assessing Officer, then obviously post of CIT(A) is required and if there is no order of ld. CIT(A), there is no requirement of the Tribunal so on and so forth. Various stages of appeals are provided so that necessary proceedings are available for both the assessee and the revenue to defend their stands. Decisions taken by the appellate authority as a judicial or quasi judicial forums, are not subject to administrative reviews. Appeal provisions are provided by the statute. It would also be worthwhile to mention here that repeatedly the courts have been holding that the ld. CIT(A) are quasi judicial authorities and no administrative pressure can be put on them to decide any issues in any specific manner. We are of the view that such apprehension of the ld. CIT-DR is unfounded. Consequently, the submission of the ld. CIT-Departmental Representative was that he is recusing from the arguments. His plea is accepted. The matters are disposed off on merits on the basis of records and documents available before the Tribunal, ex-parte qua the revenue and assessee.
A perusal of the order of the ld. CIT(A) shows that the ld. CIT(A) has applied the decision of Hon’ble Supreme Court in the case of Abhishar Buildwell Pvt. Ltd., reported in 452 ITR 212 (SC)/149 taxmann.com 399 (SC) on the ground that there is no incriminating material. A perusal of the assessment orders in all the case shows that the search was conducted in the case of M/s Atibir Industries Company Limited on 17.03.2021 and information has been obtained in the course of search and in the connected searches. Subsequently, the assessment has been done u/s.153A of the Act. A perusal of the grounds raised
by the revenue shows that the incriminating material in the form of PKRB-05 was found from the office of the Chartered Accountant and that major paper work of the assessee company were executed from the said office premises of the Chartered Accountant. As the incriminating materials have been found at the foundation for the assessment, we are of the view that the findings of the ld. CIT(A) that no incriminating material have been found or used in the impugned appeals, no more survives. Consequently, the order of the ld. CIT(A) in all the impugned appeals stands reversed.
8. Since there is no adjudication of the issues on merits by the ld. CIT(A), in the interest of justice, the issues in all the appeals are restored to the file of the ld. CIT(A) for readjudication afresh on merits after granting the assessee adequate opportunity of being heard. The findings of the ld.
CIT(A) applying the principle laid down by the Hon’ble Supreme Court in the case of Abhishar Buildwell Pvt. Ltd., referred to supra, stands reversed. 9. In the result, all the appeals of the revenue are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 07/10/2025.