ITAT Guwahati Judgments — December 2021

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, GUWAHATI vs FORTUNE VANIJYA PRIVATE LIMITED, GUWAHATI

ITA 21/GTY/2021[2011-12]Status: Disposed10 Dec 2021AY 2011-12Partly Allowed

The Tribunal held that the AO's assumption of jurisdiction under Section 153C for AY 2011-12 was bad in law as the seized documents did not constitute incriminating material for an unabated assessment. The addition under Section 68 was therefore quashed.

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, GUWAHATI vs GOLD STONE CEMENTS LIMITED, EAST JAINTIA HILLS

ITA 130/GTY/2020[2015-16]Status: Disposed10 Dec 2021AY 2015-16Partly Allowed

The Tribunal held that the additions made under Section 68 of the Act for AYs 2011-12 to 2015-16 and 2017-18 were untenable both on facts and in law. The Tribunal noted that the AO's failure to personally examine witnesses and denial of the assessee's right to cross-examine departmental witnesses, on whose statements the AO relied, constituted a fundamental flaw, rendering the additions a nullity, as held by the Supreme Court in Andaman Timber (supra). Therefore, the deletion of these additions by the Ld. CIT(A) was upheld. Regarding the computation of interest under Section 234A, the Tribunal found that the AO had wrongly taken the original due date of filing returns under Section 139(1) instead of the due date prescribed in the notice under Section 153A. The AO was directed to re-compute the interest as per sub-section (3) of Section 234A, levying it only for the period commencing after the expiry of the time limit prescribed in the Section 153A notice. Ground (E) was allowed for statistical purposes. Ground (F) was dismissed as not pressed. Grounds (G) and (H) related to AY 2017-18 were dismissed as academic. Ground (H) concerning the adjustment of seized cash was allowed for statistical purposes, directing the AO to grant credit as per Section 132B(iii).

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, GUWAHATI vs GOLD STONE CEMENTS LIMITED, EAST JAINTIA HILLS

ITA 128/GTY/2020[2013-14]Status: Disposed10 Dec 2021AY 2013-14Partly Allowed

The Tribunal held that the additions made under Section 68 of the Act for AYs 2011-12 to 2015-16 and 2017-18 were untenable both on facts and in law. The Tribunal noted that the AO's failure to personally examine witnesses and denial of the assessee's right to cross-examine departmental witnesses, on whose statements the AO relied, constituted a fundamental flaw, rendering the additions a nullity, as held by the Supreme Court in Andaman Timber (supra). Therefore, the deletion of these additions by the Ld. CIT(A) was upheld. Regarding the computation of interest under Section 234A, the Tribunal found that the AO had wrongly taken the original due date of filing returns under Section 139(1) instead of the due date prescribed in the notice under Section 153A. The AO was directed to re-compute the interest as per sub-section (3) of Section 234A, levying it only for the period commencing after the expiry of the time limit prescribed in the Section 153A notice. Ground (E) was allowed for statistical purposes. Ground (F) was dismissed as not pressed. Grounds (G) and (H) related to AY 2017-18 were dismissed as academic. Ground (H) concerning the adjustment of seized cash was allowed for statistical purposes, directing the AO to grant credit as per Section 132B(iii).

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, GUWAHATI vs GOLD STONE CEMENTS LIMITED, EAST JAINTIA HILLS

ITA 129/GTY/2020[2014-15]Status: Disposed10 Dec 2021AY 2014-15Partly Allowed

The Tribunal held that the additions made under Section 68 of the Act for AYs 2011-12 to 2015-16 and 2017-18 were untenable both on facts and in law. The Tribunal noted that the AO's failure to personally examine witnesses and denial of the assessee's right to cross-examine departmental witnesses, on whose statements the AO relied, constituted a fundamental flaw, rendering the additions a nullity, as held by the Supreme Court in Andaman Timber (supra). Therefore, the deletion of these additions by the Ld. CIT(A) was upheld. Regarding the computation of interest under Section 234A, the Tribunal found that the AO had wrongly taken the original due date of filing returns under Section 139(1) instead of the due date prescribed in the notice under Section 153A. The AO was directed to re-compute the interest as per sub-section (3) of Section 234A, levying it only for the period commencing after the expiry of the time limit prescribed in the Section 153A notice. Ground (E) was allowed for statistical purposes. Ground (F) was dismissed as not pressed. Grounds (G) and (H) related to AY 2017-18 were dismissed as academic. Ground (H) concerning the adjustment of seized cash was allowed for statistical purposes, directing the AO to grant credit as per Section 132B(iii).

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, GUWAHATI vs GOLD STONE CEMENTS LIMITED, EAST JAINTIA HILLS

ITA 126/GTY/2020[2011-12]Status: Disposed10 Dec 2021AY 2011-12Partly Allowed

The Tribunal held that the additions made under Section 68 of the Act for AYs 2011-12 to 2015-16 and 2017-18 were untenable both on facts and in law. The Tribunal noted that the AO's failure to personally examine witnesses and denial of the assessee's right to cross-examine departmental witnesses, on whose statements the AO relied, constituted a fundamental flaw, rendering the additions a nullity, as held by the Supreme Court in Andaman Timber (supra). Therefore, the deletion of these additions by the Ld. CIT(A) was upheld. Regarding the computation of interest under Section 234A, the Tribunal found that the AO had wrongly taken the original due date of filing returns under Section 139(1) instead of the due date prescribed in the notice under Section 153A. The AO was directed to re-compute the interest as per sub-section (3) of Section 234A, levying it only for the period commencing after the expiry of the time limit prescribed in the Section 153A notice. Ground (E) was allowed for statistical purposes. Ground (F) was dismissed as not pressed. Grounds (G) and (H) related to AY 2017-18 were dismissed as academic. Ground (H) concerning the adjustment of seized cash was allowed for statistical purposes, directing the AO to grant credit as per Section 132B(iii).

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, GUWAHATI vs GOLD STONE CEMENTS LIMITED, EAST JAINTIA HILLS

ITA 127/GTY/2020[2012-13]Status: Disposed10 Dec 2021AY 2012-13Partly Allowed

The Tribunal held that the additions made under Section 68 of the Act for AYs 2011-12 to 2015-16 and 2017-18 were untenable both on facts and in law. The Tribunal noted that the AO's failure to personally examine witnesses and denial of the assessee's right to cross-examine departmental witnesses, on whose statements the AO relied, constituted a fundamental flaw, rendering the additions a nullity, as held by the Supreme Court in Andaman Timber (supra). Therefore, the deletion of these additions by the Ld. CIT(A) was upheld. Regarding the computation of interest under Section 234A, the Tribunal found that the AO had wrongly taken the original due date of filing returns under Section 139(1) instead of the due date prescribed in the notice under Section 153A. The AO was directed to re-compute the interest as per sub-section (3) of Section 234A, levying it only for the period commencing after the expiry of the time limit prescribed in the Section 153A notice. Ground (E) was allowed for statistical purposes. Ground (F) was dismissed as not pressed. Grounds (G) and (H) related to AY 2017-18 were dismissed as academic. Ground (H) concerning the adjustment of seized cash was allowed for statistical purposes, directing the AO to grant credit as per Section 132B(iii).