ACIT, NEW DELHI vs. M/S OM SHIV BUILDTECH PVT. LTD., NEW DELHI

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ITA 1979/DEL/2016Status: DisposedITAT Delhi30 August 2023AY 2007-08Bench: this tribunal. In addition to this, the assessee also filed cross objections before us. The assessee appeal in ITA No. 1586/Del/2016 for A.Y. 2007-08 was disposed off by this tribunal vide order dated 08.02.2023 wherein the entire assessment was annulled on the ground that approval u/s 153D of the Act was granted by the Additional Commissioner of Income Tax in a mechanical manner after placing reliance on various decisions of Hon’ble High Courts. Since the entire assessment is annulled, the4 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 annulled the entire assessment on the grounds that the approval under section 153D was granted mechanically. Consequently, the Revenue's appeal and the assessee's cross-objections became infructuous.

What were the facts?

A search was conducted at the assessee company's premises, leading to a notice under section 153A and assessment under section 144 r.w.s. 153A. The assessee is a real estate company. The entire assessment was annulled by the ITAT.

What were the issues?

The primary issue was the validity of the assessment proceedings, specifically whether the approval under section 153D was granted properly and not mechanically.

Which sections of the Income-tax Act were involved?

Section 153A,Section 144,Section 153D

AI-generated summary — verify with the full judgment below

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

For Respondent: Ms. Monika Agarwal, Advocate
Hearing: 03/08/2023Pronounced: 30/08/2023

Heard together (2 matters)

C.O.No.200/Del/2016
ITA No.1979/Del/2026

Read from the judgment's own cause title. This page is filed under one of them.

PER M. BALAGANESH AM: This appeal of the Revenue arises out of the order of the

Learned Commissioner of Income Tax (Appeals)-XXVI, New Delhi,

1.

[hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.413/13-14 dated 18/01/2016 against the order passed by Ld. Deputy

Commissioner of Income Tax, Central Circle-15, New Delhi

(hereinafter referred to as the ‘Ld. AO’) u/s 144 r.w.s.153A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 21/03/2013.

2.

We have heard the rival submissions and perused the materials available on record. The assessee is a company dealing in real estate land trading and development. A search was conducted at the office premises of the company on 31.01.2008 and accordingly notice u/s 153A of the Act was issued on 19.06.2009 and assessment was completed u/s 144 r,w,s 153A consequent upon order u/s 264 of the Act dated 21.03.2013 determining total income at Rs 4,67,73,448/-. In first appeal, the assessee obtained partial relief. Against the order of the ld. CIT(A), the assessee as & C.O. No.200/Del/2016 ACIT vs. M/s Om Shanti Builtech Pvt. Ltd. well as the revenue preferred appeals before this tribunal. In addition to this, the assessee also filed cross objections before us.

The assessee appeal in for A.Y. 2007-08 was disposed off by this tribunal vide order dated 08.02.2023 wherein the entire assessment was annulled on the ground that approval u/s 153D of the Act was granted by the Additional Commissioner of Income Tax in a mechanical manner after placing reliance on various decisions of Hon’ble High Courts. Since the entire assessment is annulled, the revenue appeal and assessee’s cross objections would also become infructuous and accordingly dismissed.

3.

In the result, the appeal of the revenue is dismissed and cross objections of the assessee is dismissed.

Order pronounced in the open court on 30th August, 2023.

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