CIT v. Kabul Chawla

380 ITR 573High Court2016#3 most cited

What is CIT v. Kabul Chawla authority for?

In a search assessment under Section 153A, additions can only be made for completed or non-abated assessment years if incriminating material relevant to those years is found during the search, although notice under Section 153A(1) is mandatorily issued for six assessment years preceding the search.

3,235

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Kabul Chawla · Kabul Chawla · section 153A · section 132 · incriminating material · search assessment · non-abated years · scope of assessment · additions · undisclosed income

Also reported as

61 Taxmann.com 412234 Taxmann 300281 CTR 45

Sections most often in play

Section 153A Section 132 Section 143(3)Section 147 Section 148 Section 153C Section 132A Section 143(2)

Read the full judgment

Issues it is cited on

section 158bc statement under section 132(4)section 132a section 158b block period section 132(1)section 153a(1)section 158 section 153b search assessment panchnama incriminating material

Judgments citing CIT v. Kabul Chawla

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 218/AHD/2020[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 217/AHD/2020[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 216/AHD/2020[2010-11]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2010-11

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 215/AHD/2020[2009-10]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2009-10

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 214/AHD/2020[2008-09]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2008-09

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 213/AHD/2020[2007-08]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2007-08

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 212/AHD/2020[2006-07]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2006-07

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Ashokji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 211/AHD/2020[2005-06]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2005-06

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

Shri Rohitji Chanduji Thakor, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

ITA 210/AHD/2020[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2024AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

…unded in various authoritative judgments recording scope of section 153A of the Act. We are of the view that in this regard, there were large numbers of decisions. First we refer to the decision of Hon’ble Delhi High Court in the case of CIT Vs. Kabul Chawla, 380 ITR 573 (Del). Hon’ble Delhi High Court after detailed analysis has summarized the following legal position: 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 o…

M/S. Concorde Housing Corporation Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Central Circle-1(4), Bengaluru

In the result, appeal of the assessee in ITA No

ITA 531/BANG/2024[2014-15]Status: DisposedITAT Bangalore29 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadav

For Appellant: Sri V. Srinivasan, A.RFor Respondent: Ms. Neha Sahay, D.R

Section 132Section 153ASection 271(1)(c)

…the addition made in absence of incriminating material in the proceedings U/s 153A where the assessment was not pending on the date of search is not sustainable. A similar view has been taken by the Hon’ble Delhi High Court in the case of CIT Vs Kabul Chawla 380 ITR 573 (Del) as well as in the case of Principal Commissioner of Income Tax Central-2, New Delhi v. Meeta Gutgutia [2017] 395 ITR 526 and held that unless there is an incriminating material for the addition sought to be made pursuant to the search and seizure operation, the addition cannot be made in respect of the assessment year which was not pending…

Deputy Commissioner of Income Tax Central Circle 16, Delhi vs. Umrao Hotels and Resorts Private Limited, Delhi

In the result, assessee’s appeal is allowed and the appeal preferred by the Revenue is dismissed

ITA 3045/DEL/2023[2018-19]Status: DisposedITAT Delhi24 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. Nos. 2867 /Del/2023 (Assessment Year : 2018-19) Umrao Hotels & Resorts Vs. Acit Pvt. Ltd., The Umrao, Nh- Central Circle – 16 48, Vill Samalkha, Near Delhi Rajori Crossing, New Delhi – 110037 Pan: Aaacu 6777 D (Appellant) .. (Respondent) & I.T.A. Nos. 3045/Del/2023 (Assessment Year : 2018-19) Dcit Vs. Umrao Hotels & Resorts Central Circle – 16 Pvt. Ltd., The Umrao, Nh- Delhi-110055 48, Vill Samalkha, Near Rajori Crossing, New Delhi - 110037 Pan: Aaacu 6777 D

For Appellant: Shri S. C. Garg, C.AFor Respondent: Shri T. James Singson, CIT-D.R

Section 132Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153CSection 250

…did not pertain to the relevant two years before us and additions on the basis of said material have been made for AY 2018-19 in which there are separate appeals pending. The CIT(A) has relied on the settled proposition of law in Kabul Chawla Case reported in 380 ITR 573, which now stand upheld by the Hon'ble Supreme Court in PCIT vs Abhisar Buildwell P Ltd reported in 454 ITR 212 (SC), that in absence of incriminating material, no addition can be made in re- assessment u/s 153C of the Act. There is no force in the ground that the assessing authority can draw inference in respect of activities carried on by the a…

Umrao Hotels and Resorts Pvt. Ltd., Delhi vs. ACIT, Central Circle-16, Delhi

In the result, assessee’s appeal is allowed and the appeal preferred by the Revenue is dismissed

ITA 2867/DEL/2023[2018-19]Status: DisposedITAT Delhi24 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. Nos. 2867 /Del/2023 (Assessment Year : 2018-19) Umrao Hotels & Resorts Vs. Acit Pvt. Ltd., The Umrao, Nh- Central Circle – 16 48, Vill Samalkha, Near Delhi Rajori Crossing, New Delhi – 110037 Pan: Aaacu 6777 D (Appellant) .. (Respondent) & I.T.A. Nos. 3045/Del/2023 (Assessment Year : 2018-19) Dcit Vs. Umrao Hotels & Resorts Central Circle – 16 Pvt. Ltd., The Umrao, Nh- Delhi-110055 48, Vill Samalkha, Near Rajori Crossing, New Delhi - 110037 Pan: Aaacu 6777 D

For Appellant: Shri S. C. Garg, C.AFor Respondent: Shri T. James Singson, CIT-D.R

Section 132Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153CSection 250

…did not pertain to the relevant two years before us and additions on the basis of said material have been made for AY 2018-19 in which there are separate appeals pending. The CIT(A) has relied on the settled proposition of law in Kabul Chawla Case reported in 380 ITR 573, which now stand upheld by the Hon'ble Supreme Court in PCIT vs Abhisar Buildwell P Ltd reported in 454 ITR 212 (SC), that in absence of incriminating material, no addition can be made in re- assessment u/s 153C of the Act. There is no force in the ground that the assessing authority can draw inference in respect of activities carried on by the a…

DCIT, Central Circle-1, Gurgaon vs. K.S.Chawla & Sons (HUF), New Delhi

In the result, the appeal preferred by the Revenue is found to be devoid of any merit and thus dismissed and the C

ITA 6974/DEL/2018[2013-14]Status: DisposedITAT Delhi24 Jul 2024AY 2013-14

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. No. 6974/Del/2018 (Assessment Year : 2013-14) Acit Vs. K. S. Chawla & Sons (Huf) 7Th Floor, Hsiidc Building, Central Circle – I, Gurugram Udyog Vihar, Phase-5, Gurugram Pan: Aadhk 7622 M

For Appellant: Shri Parikshi Aggarwal, C.AFor Respondent: Ms. Rishpal Bedi, CIT-D.R

Section 132Section 132(4)Section 148Section 153ASection 250

…be declared as illegal as the case was initiated by issuing notice under Section 148 of the Act, but was concluded by passing an order under Section 153A of the Act. The ratio laid down by the Hon’ble Delhi High Court in the case of Kabul Chawla, reported in 380 ITR 573 (Delhi) CO No.15/Del/2019 Charan Singh found to be applicable to this effect that in an unabated assessment no addition under Section 153A of the Act cannot be made without reference to any incriminating material seized during the search. In the absence of any incriminating material in the facts and circumstances of the case in hand, the additio…

Deepa Gupta, Hyderabad vs. ACIT, Central Circle-3(1), Hyderabad

In the result, all the appeals are allowed

ITA 59/HYD/2023[2012-13]Status: DisposedITAT Hyderabad18 Jul 2024AY 2012-13

Bench: Shri Manjunatha G. & Shri K.Narasimha Chary

For Appellant: Advocate Narahari BiswalFor Respondent: Shri CH Rajeswara Reddy, DR

Section 10(38)Section 132Section 143Section 143(3)Section 153ASection 68

…rial relevant to the matter on the issue pertaining to these assessment years and since no assessment was pending for these assessment years as on the date of search in terms of the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla, 380 ITR 573 / (2015) 61 taxmann.com 412 (Delhi), no interference could be made with Page 2 of 9 the concluded assessment, while making assessment under section 153A of the Act. 6. Learned CIT(A) did not agree with the contentions raised by the assessees and recorded that the execution of warrant makes it obligatory on the part of the learned Assessing Office…

Rajesh Products, Tonk, Rajasthan vs. ACIT, Jaipur

Appeal is dismissed

ITA 626/JPR/2023[2016-17]Status: DisposedITAT Jaipur18 Jul 2024AY 2016-17

For Appellant: Shri Mahesh Jain, CA (Th. V.C)For Respondent: Shri Bhanwar Singh Ratnu, (CIT-DR)

Section 132(1)Section 132(4)Section 142(1)Section 143(2)Section 143(3)

…ed during the search and the other material available with the AO including the income declared in the returns; and (iv) (emphasis supplied) It is important to note that in the judgements ie. CIT v. Kabul Chawla (2015) 61 taxmann.com 412/234 Taxman 300/|2016] 380 ITR 573 (Delhi) and Pr. ČIT v. Saumya Construction (P.) Ltd. (2017) 81 taxmann.com 292/[2016] 387 [TR 529 (Guj.) the scope of "incriminating material is not restricted to the "seized material". The judgements refer to "should be connected with something found during the search or requisition" and some incriminating material unearthed during the course of…

DCIT, Central Circle, Ghaziabad vs. Kdp Buildwell Private Limited, Delhi

In the result, cross objections of the assessee are allowed and appeals of the

ITA 1812/DEL/2021[2012-13]Status: DisposedITAT Delhi16 Jul 2024AY 2012-13

Bench: Shri Saktijit Dey & Dr. Brr Kumar

Section 132Section 139(1)Section 14ASection 153ASection 68

…nt proceedings for the impugned assessment years have not abated, the Assessing Officer could not have made any addition in absence of any incriminating/ seized material. In support of such contention he relied upon following decisions: - CIT v. Kabul Chawla 380 ITR 573 (Del.); and - PCIT v. Abhisar Buildwell (P) Ltd. (2023) 149 taxmann.com 399 (SC). 7. Learned Departmental Representative submitted that assessee’s contention that proceedings were not initiated based on any incriminating material is incorrect as in the statement recorded in course of search and seizure operation, reference to undisclosed incom…

DCIT, CC Gzbd, Uttarpradesh vs. Kdp Buildwell Private Ltd., Delhi

In the result, cross objections of the assessee are allowed and appeals of the

ITA 1811/DEL/2021[2011-12]Status: DisposedITAT Delhi16 Jul 2024AY 2011-12

Bench: Shri Saktijit Dey & Dr. Brr Kumar

Section 132Section 139(1)Section 14ASection 153ASection 68

…nt proceedings for the impugned assessment years have not abated, the Assessing Officer could not have made any addition in absence of any incriminating/ seized material. In support of such contention he relied upon following decisions: - CIT v. Kabul Chawla 380 ITR 573 (Del.); and - PCIT v. Abhisar Buildwell (P) Ltd. (2023) 149 taxmann.com 399 (SC). 7. Learned Departmental Representative submitted that assessee’s contention that proceedings were not initiated based on any incriminating material is incorrect as in the statement recorded in course of search and seizure operation, reference to undisclosed incom…

Pr Commissioner of Income Tax vs. Ramesh Sharma

Appeal of the revenue are dismissed

ITA/209/2019HC Delhi10 Jul 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE RAVINDER DUDEJA

…nce being a concluded assessment, it could not have been reopened without there being incriminating material? B. Whether the Ld. ITAT erred m law and on facts in dismissing the appeal of revenue solely relying on the decision of the Hon'ble High Court in 380 ITR 573 in CIT Vs. Kabul Chawla without properly appreciating the facts and circumstances of the case? C. Whether the Ld. ITAT erred in law and facts in upholding the decision of the Ld. CIT(A) without appreciating the facts and circumstances of the case?” 2. We note that while dealing with the validity of the search This is a digitally signed…

Commissioner of Income Tax vs. Ramesh Sharma

Appeal of the revenue are dismissed

ITA/227/2019HC Delhi10 Jul 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE RAVINDER DUDEJA

…nce being a concluded assessment, it could not have been reopened without there being incriminating material? B. Whether the Ld. ITAT erred m law and on facts in dismissing the appeal of revenue solely relying on the decision of the Hon'ble High Court in 380 ITR 573 in CIT Vs. Kabul Chawla without properly appreciating the facts and circumstances of the case? C. Whether the Ld. ITAT erred in law and facts in upholding the decision of the Ld. CIT(A) without appreciating the facts and circumstances of the case?” 2. We note that while dealing with the validity of the search This is a digitally signed…

Samit Ray, Kolkata vs. DCIT, Cen. Cir. 3(4), Kolkata

In the result, all the appeals of the assessees are allowed

ITA 780/KOL/2024[2014-15]Status: DisposedITAT Kolkata10 Jul 2024AY 2014-15

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Sanjay Awasthii.T.A. No. 778/Kol/2024 Assessment Year: 2014-2015 Arati Ray,………………………………..……………Appellant 11/1, Dishari Bhawan, B.T. Road, Belghoria, Kolkata-700056 [Pan:Adopr8465R] -Vs.- Deputy Commissioner Of Income Tax,…..…Respondent Central Circle-3(4), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, 5Th Floor, Kolkata-700107 & I.T.A. No. 779/Kol/2024 Assessment Year: 2014-2015 Mallika Roy,…………………………..……………Appellant 11/1, Dishari Bhawan, B.T. Road, Belghoria, Kolkata-700056 [Pan:Acgpr7888F] -Vs.- Deputy Commissioner Of Income Tax,…..…Respondent Central Circle-3(4), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, 5Th Floor, Kolkata-700107 & I.T.A. No. 780/Kol/2024 Assessment Year: 2014-2015 1

Section 139(1)Section 144Section 153ASection 153DSection 263

…ITA No. 778/KOL/2024 (A.Y. 2014-2015)- Arati Ray ITA No. 779/KOL/2024 (A.Y. 2014-2015)-Mallika Roy ITA No. 780/KOL/2024 (A.Y. 2014-2015)-Samit Ray THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 778/KOL/2024 Assessment Year: 2014-2015 Arati Ray,………………………………..……………Appellant 11/1, Dishari Bhawan, B.T. Road, Belghoria, Kolkata-700056 [PAN:ADOPR8465R] -Vs.- Deputy Commissioner of Income Tax,…..…Respondent Central Circle-3(4), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, 5th Floor, Kolkata-700107 & I.T.…