ACIT, CIRCLE-5(2), NEW DELHI vs. C.P.& ASSOCIATES PVT. LTD., NEW DELHI

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ITA 577/DEL/2018Status: DisposedITAT Delhi06 September 2023AY 2008-09Bench: SHRI N.K. BILLAIYA (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)4 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessments framed under Section 153C lacked incriminating materials. Therefore, the additions made by the AO were deleted, following the ratio laid down by the Delhi High Court and affirmed by the Supreme Court.

What were the facts?

The Revenue appealed against the deletion of additions made by the AO on account of share application money. The assessments were framed under Section 153C based on a search conducted at KGK Infrastructure and Developers Pvt. Ltd.

What were the issues?

Whether assessments framed under Section 153C are valid without any incriminating material seized during the search, and whether the additions on account of share application money were justified.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI

Before: SHRI N.K. BILLAIYA & SHRI ANUBHAV SHARMA

For Appellant: Shri Gautam Jain, Adv
For Respondent: Shri T James Singson, CIT(DR), Shri Gautam Jain, Adv
Hearing: 04.09.2023Pronounced: 06.09.2023

.- 576/Del/2018, 577/Del/2018 and 578/Del/2018 are three separate appeals by the Revenue preferred against three separate orders of the CIT(A)-2, New Delhi, dated 18.10.2017 pertaining to AYs 2007-08, 2008-09 and 2009-10. Since common issues are involved in the captioned appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.

ITA No.- 576/D/2018 and others. C.P. Associates Pvt. Ltd. 2. The common grievance relates to the deletion of the addition made by the AO on account of share application money received during the year, though quantum may differ.

3.

Briefly stated the facts of the case are that a search and seizure operation was conducted at the business and residential premises of M/s KGK Infrastructure and Developers Pvt. Ltd. on 06.05.2010. Various incriminating materials were found and seized on the basis of search material. Notice U/s 153C of the Act was issued in the case of the assessee on 20.03.2014, whereas the assessee had filed return of income for the impugned assessment order on 24.10.2007, 27.09.2008 and 28.03.2011 respectively. Considering the assumption of jurisdiction U/s 153C of the Act by recording the satisfaction the date of search in the case of the assessee (being a person other than the searched person) the date of search would be 20.03.2014 and considering the date of return filed for the impugned assessment orders it can be safely considered that the impugned assessment are unabated assessment. Therefore, the assessment framed U/s 153C of the Act must have a direct bearing with the incriminating material found at the time of search.

4.

A perusal of the impugned assessment orders show that the additions made by the AO are devoid of any incriminating materials, therefore, the ratio laid down by the Hon’ble Jurisdictional High Court of Delhi in the case of Kabul Chawla 380 ITR 573 squarely apply which have been affirmed by the Hon’ble Supreme Court in the case of Abhisar Buildwell (P) Ltd. 454 IT 212 and M/s U.K. Paints (Overseas) Ltd. 454 ITR 441.

ITA No.- 576/D/2018 and others. C.P. Associates Pvt. Ltd. 4.1 Since CIT(A) has followed the aforementioned binding decisions, we do not find any reason to interfere in the finding of the CIT(A). The captioned appeals filed by the Revenue are dismissed.

5.

In the result, appeals are dismissed.

Order pronounced in the Open Court on 06.09.2023

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