M/S VINMAN ESTATES (P) LTD.,NEW DELHI vs. DCIT, NEW DELHI

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ITA 1590/DEL/2016Status: DisposedITAT Delhi26 May 2016AY 2006-074 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the assessee's appeals as academic, acknowledging the CIT(A)'s decision in favour of the assessee on the legal ground. A rider was added allowing the assessee to seek recall of the order if the department appealed the CIT(A)'s decision.

What were the facts?

The assessee's appeals were considered academic in nature as the CIT(A) had ruled in their favour on the legal issue. The CIT(A) held that the Assessing Officer could not have proceeded with assessment under Section 153A as no incriminating material was found during the search.

What were the issues?

Whether assessment under Section 153A is permissible without finding incriminating material during a search operation.

Which sections of the Income-tax Act were involved?

Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-I, NEW DELHI

Hearing: 26.05.2016Pronounced: 26.5.2016

ORDER PER N.K.SAINI, AM : These two appeals by the assessee are directed against the separate orders of the CIT(A)-26, New Delhi dated 18th January, 2016 and 7th January, 2016 for the assessment year 2005-06, 2006-07 respectively.

2.

During the course of hearing, Ld. Counsel for the assessee was fair enough to concede that these appeals are academic in nature since, the ld. CIT(A) has decided the appeals in favour of the assessee while deciding the legal issue that no incriminating material was found. During the course of search, therefore, the AO could not have proceeded to frame the assessment u/s 153(A) of the Income Tax Act, 1961 (hereinafter referred to as the Act). He further submitted that in case the department files the appeal against the order of the ld. CIT(A) then liberty is to be given to the assessee to move an application for recalling the order of the ITAT for dismissal of the assessee’s appeals. In his rival submissions, the ld. DR submitted that the appeals by the assesses deserve to be dismissed since these are ,1590/Del/2016 Bhudeva Estates P.L. & Vinman Estates P.L. academic in nature as the legal issue raised by the has been decided by the ld. CIT(A) in assessee’s favour.

3.

I have considered the submissions of both the parties and carefully gone through the material available on record. In the present case, it is noticed that the ld. CIT(A) while deciding the appeals of the assesses allowed the legal grounds raised by the assesses by observing in para 13 of each of the impugned orders as under :

“13. In view of above analysis of legal view on the issue, the AO couldn’t have proceeded to frame assessment u/s 153A in respect of year under consideration as no incriminating documents/ assets have been found during search operation pertaining to this year. This ground of appeal, is therefore, allowed.”

4. In view of the above observations of the ld. CIT(A) the issues raised by the assessee on merit are academic in nature. I, therefore, dismiss the appeals of the assessee with a rider that in case the department challenges the orders of the ld. CIT(A) than the assessee will be free to move an application for recalling this order. ,1590/Del/2016 Bhudeva Estates P.L. & Vinman Estates P.L.

5.

In the result appeals of the assessee are dismissed.

(Order pronounced in the Open Court on 26/05/2016)

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