SRI.M.HUSSAIN,KOLLAM vs. THE DCIT, KOLLAM

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ITA 21/COCH/2021Status: DisposedITAT Cochin23 August 2024AY 2009-10Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI AMARJIT SINGH (Accountant Member)4 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

For the unabated assessment years (2007-08 to 2010-11), the Tribunal found that the Revenue could not pinpoint specific material to justify the additions, thus allowing the appeals. For the abated assessment years (2011-12 and 2012-13), the Tribunal found no merit in the assessee's submissions as the assessments were based on relevant material examined during scrutiny, leading to the dismissal of these appeals.

What were the facts?

The assessee's case involved assessments under Section 153C read with Section 143(3) of the Income Tax Act, 1961, following a search conducted on M/s. AR Bangles. The assessments covered assessment years 2007-08 to 2012-13.

What were the issues?

Whether additions made under Section 153C for unabated assessment years were based on specific seized material. Whether abated assessments finalized under Section 153C were validly based on examined material.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3)

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Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN

Before: SHRI SATBEER SINGH GODARA & SHRI AMARJIT SINGH

Hearing: 20.08.2024Pronounced: 23.08.2024

Sl.No. ITA.No. Name of the Name of the Order Appealed against Proceedings ALONG WITH Assessee Respondent CIT(A), Kochi-3, Kochi’s involved u/sec. S.A.No. A.Y. Appeal No./DIN & Order No. of the Income ITBA/APL/S/250/2020-21 Tax Act, 1961 (in short the "Act") 1. 19/COCH./2021 2007-08 143(3) ITA.No.3,4,1,30,29,28/KLM/C r.w.s.153C IT(A)-III/2014-15, dated 10.11.2020 2. 20/COCH./2021 2012-13 Shri M. 1028547167(1) dated 143(3) 10.11.2020 Hussain, K.P. 3. 21/COCH./2021 2012-13 1028547167(1) dated 143(3) 10.11.2020 House, 4. 22/COCH./2021 2010-11 ITA.No.3,4,1,30,29,28/KLM/C 143(3) Palliserickal The DCIT, IT(A)-III/2014-15, dated r.w.s.153C 10.11.2020 P.O. Central 5. 23/COCH./2021 2011- 1028547167(1) dated 143(3) 12/2012- 10.11.2020 Sasthamcotta Circle-1, 13 in CIT , KOLLAM KOLLAM Order 6. 24/COCH./2021 2012-13 143(3) PIN 690521 ITA.No.3,4,1,30,29,28/KLM/C r.w.s.153C IT(A)-III/2014-15, dated PAN ABIPH0110P 10.11.2020 . KERALA 1 to 6 S.A.Nos.4 to 2007-08, 9/COCH./2021 2010-11 to 2012- 13

For Assessee : Shri Anil D. Nair, Advocate For Revenue : Shri Dr. S. Pandian, CIT-DR & Smt. V. Swarnalatha, Sr. DR

Date of Hearing : 20.08.2024 Date of Pronouncement : 23.08.2024

ORDER PER BENCH :

The instant batch of six main appeals and as many stay applications pertains to a single assessee herein namely Shri M.

Hussain. All other relevant details stand duly tabulated hereinabove.

2 ITA.Nos.19 to 24 & SA.Nos.4 to 9/COCH./2021 Heard both the parties. Case files perused.

2.

It emerges at the outset with the able assistance coming from both the sides that we are dealing with the impugned sec.153C rw.s.143(3) assessments wherein the relevant search had been carried-out on 22.09.2011 in case of M/s. AR Bangles, Kollam. Learned assessing authority in assessee’s case appears to have set sec.153C mechanism in motion by recording it’s satisfaction on 10.12.2012 which finally culminated in all these six assessments for assessment years 2007-2008 to 2012-2013. It is thus clear that the impugned former four assessment years herein from assessment year 2007- 2008 to 2010-2011 in fact involve “unabated” assessments which have to be strictly based on the relevant seized material found during the course of search as per PCIT vs. AbhisarBuildwell P.

Ltd.,[2023] 454 ITR 212 (SC).

3.

The Revenue could hardly pinpoint any such specific material in all these four assessment years which could form the basis on the addition(s) made in assessee’s hands. We thus find force in the assessee’s instant first and foremost legal argument/ ground(s) in his former impugned sec.153C assessments in assessment years 2007-2008 to 2010-2011 forming subject

3 ITA.Nos.19 to 24 & SA.Nos.4 to 9/COCH./2021 matter of adjudication in ITA.Nos.19 to 22/Coch./2021. These appeals are allowed in very terms.

4.

We now left with the assessee’s latter twin appeals ITA.Nos.23 and 24/Coch./2021 involving “abated” assessments which could indeed be finalised in light of the entire material seeing light of the day only during the course of scrutiny. Learned senior counsel is fair enough in not disputing the fact that the impugned twin abated assessments are indeed based on the relevant material examined during the course of sec.143(3) r.w.s.153C detailed scrutiny and therefore, we find no merit either in assessee’s submissions on legality or on merits; as the case may be. These latter twin appeals ITA.Nos.23 and 24/Coch.2021 are dismissed. Ordered accordingly.

No other ground or argument has been pressed before us during the course of hearing.

5.

To sum-up, these assessee’s former four appealsITA.Nos.19 to 22/Coch./2021 are allowed and latter twin appeals ITA.Nos.23 and 24/Coch.2021 are dismissed in above terms. His corresponding stay applications S.A. Nos.4 to 4 ITA.Nos.19 to 24 & SA.Nos.4 to 9/COCH./2021 9/COCH./2021stand rendered academic. A copy of this common order be placed in the respective case files.

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