RAHUL AGARWAL,NEW DELHI vs. ACIT CIRCLE-46(1), NEW DELHI

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ITA 7955/DEL/2019Status: DisposedITAT Delhi20 June 2023AY 2011-122 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment year in question was an abated assessment, and the satisfaction recorded by the Assessing Officer for initiating proceedings under Section 147 was based on incorrect facts. Therefore, the assessment completed was void ab initio.

What were the facts?

The assessee filed a return of income, and a search and seizure action was conducted. The assessment was completed under Section 153A. The Assessing Officer later recorded reasons to believe for initiating proceedings under Section 147, stating no scrutiny assessment under Section 143(3) was made.

What were the issues?

Whether the satisfaction recorded by the AO for initiating reassessment proceedings under Section 147 was legally valid when the assessment year was abated and already subject to Section 153A proceedings.

Which sections of the Income-tax Act were involved?

Section 153A,Section 147,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI

Before: Dr. B. R. R. KumarSh. Yogesh Kumar US

For Respondent: Ms. Indu Bala Saini, Sr. DR
Hearing: 14.06.2023Pronounced: 20.06.2023

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of ld. CIT(A)-16, New Delhi dated 26.07.2019.

2.

In this case,

 The assessee filed return of income on 12.08.2011declaring total income of Rs.28,81,392/-.  A search & seizure action has been conducted on the assessee on 02.09.2011.  The assessment has been completed u/s 153A on 27.03.2014 owing to search & seizure action.  The AO recorded satisfaction on 17.07.2018 wherein it has been mentioned that in this case a return of income was filed for the year under consideration but no scrutiny

Rahul Agarwal assessment u/s 143(3) of the Act was made. The reasons recorded on 17.07.2018 are as under:

“5. In this case a return of income was filed for the year under consideration but no scrutiny assessment u/s 143(3) of the Act was made. Accordingly, in this case, the only requirement to initiate proceeding u/s 147 is reason to believe which has been recorded above.”

3.

Since, it is an abated assessment, the assessment would also include seized material and also any other information available to the revenue leading to complete scrutiny assessment. This goes to prove that the Assessing Officer has not verified the history of the case that the Assessment Year in question was an abated assessment pertaining to one year prior to the search year wherein the assessment u/s 153A has been completed and hence the satisfaction recorded on wrong facts cannot be held to be legally valid and consequently, the assessment completed is void ab initio.

4.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 20/06/2023.

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