Gopal Lal Bhadruka v. DCIT

Dy. Commissioner of Income Tax, Central Circle-1(3), Hyderabad vs. Shiva Shankar Minerals Private Limited, Hyderabad

Appeal is dismissed in above terms

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahuassessment Year: 2016-17 The Deputy Commissioner Vs. M/S. Shiva Shankar Of Income Tax, Minerals Private Limited, Central Circle – 1(3), Hyderabad. Hyderabad. Pan : Aaccs5388N. (Appellant) (Respondent) Assessee By: Shri M.V. Anil Kumar, Ca Revenue By: Shri Rajendra Kumar, Cit-Dr Date Of Hearing: 15.03.2022 Date Of Pronouncement: 17.03.2022 O R D E R Per S. S. Godara, J.M. This Revenue’S Appeal For A.Y. 2016-17 Arises From The Commissioner Of Income Tax (Appeals) – 11, Hyderabad’S, Order Dated 07.08.2020 In Case No.10259/2019-20 Involving Proceedings U/S. 143(3) R.W.S 153A Of The Income Tax Act, 1961 [In Short, ‘The Act’]. Heard Both The Parties. Case File Perused. 2. The Revenue Raises The Following Substantive Grounds In The Instant Appeal:

…ased on any incriminating material found or seized during the course of the search as under : 2 3 4 5 4. Learned CIT-DIR vehemently contended during the course of hearing that hon’ble jurisdictional high court’s decision in Gopal Lal Bhadruka Vs. (2012) DCIT 346 ITR 106 supports the Revenue’s case that a search assessment could very well be framed on altogether a new material which sees light of the day in the corresponding proceedings. We find no merit in the Revenue’s 6 arguments as their lordships’ decision is only applicable in a case wherein the department indeed comes across incriminating material at the…

Dy. Commissioner of Income Tax, Central Circle-2(1), Hyderabad vs. Indu Projects Limited, Hyderabad

Appeals are dismissed therefore

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…nsequences flowing therefrom in case of an assessee having not claimed Section 80-IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Construc…

Dy. Commissioner of Income Tax, Central Circle-2(1), Hyderabad vs. Indu Projects Limited, Hyderabad

Appeals are dismissed therefore

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…nsequences flowing therefrom in case of an assessee having not claimed Section 80-IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Construc…

Dy. Commissioner of Income Tax, Central Circle-2(1), Hyderabad vs. Indu Projects Limited, Hyderabad

Appeals are dismissed therefore

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…nsequences flowing therefrom in case of an assessee having not claimed Section 80-IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Construc…

Dy. Commissioner of Income Tax, Central Circle-2(1), Hyderabad vs. Indu Projects Limited, Hyderabad

Appeals are dismissed therefore

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…nsequences flowing therefrom in case of an assessee having not claimed Section 80-IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Construc…

Dy. Commissioner of Income Tax, Central Circle-3(1), Hyderabad vs. Gkc Projects Limited, Hyderabad

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…sequences flowing therefrom in case of an assessee having not claimed Section 80- IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Constru…

Dy. Commissioner of Income Tax, Central Circle-3(1), Hyderabad vs. Gkc Projects Limited, Hyderabad

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…sequences flowing therefrom in case of an assessee having not claimed Section 80- IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Constru…

Dy. Commissioner of Income Tax, Central Circle-3(1), Hyderabad vs. Gkc Projects Limited, Hyderabad

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…sequences flowing therefrom in case of an assessee having not claimed Section 80- IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Constru…

Dy. Commissioner of Income Tax, Central Circle-3(1), Hyderabad vs. Gkc Projects Limited, Hyderabad

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…sequences flowing therefrom in case of an assessee having not claimed Section 80- IA deduction in section 139(1) return are deemed to have been rendered non-operative. Coupled with this, hon'ble jurisdictional high court in Gopal Lal Bhadruka Vs. DCIT (2012) (346 ITR 106) (AP HC) has also made it clear that an Assessing Officer framing Section 153A assessment can very well take note of all other material apart from the incriminating and seized one during the course of search for the purpose of framing assessment u/s.153A as he supposed to total income. This tribunal’s co-ordinate bench’s order in M/s.KNR Constru…

Olectra Greentech Limited, Hyderabad vs. Assistant Commissioner of Income Tax, Central Circle-3(2), Hyderabad

In the result, both the appeals of the assessee are allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

…years. When the case is opened by issuing notice u/s 153A(1), the AO is at liberty to complete the assessments for the unabated assessment years as he thinks fit. In support his arguments, he relied on the following judgments: 1. Gopal Lal Bhadruka Vs. DCIT, 346 ITR 106 (AP) 2. E.N. Gopa Kumar, [2017] 390 ITR 131 8. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. It is observed that search was conducted on 09/11/2017 and accordingly, as per the notice issued by the AO, the assessee had filed its return of income u/s 153A of th…

Olectra Greentech Limited, Hyderabad vs. Assistant Commissioner of Income Tax, Central Circle-3(2), Hyderabad

In the result, both the appeals of the assessee are allowed in above terms

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

…years. When the case is opened by issuing notice u/s 153A(1), the AO is at liberty to complete the assessments for the unabated assessment years as he thinks fit. In support his arguments, he relied on the following judgments: 1. Gopal Lal Bhadruka Vs. DCIT, 346 ITR 106 (AP) 2. E.N. Gopa Kumar, [2017] 390 ITR 131 8. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. It is observed that search was conducted on 09/11/2017 and accordingly, as per the notice issued by the AO, the assessee had filed its return of income u/s 153A of th…

ACIT, Central Circle-1(1), Hyd, Hyderabad vs. Alluri Krishna Reddy, Hyd, Hyderabad

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahuassessment Year: 2007-08

…uch a course of action i.e., taking other issues as well whilst framing sec.143(3) r.w.s 153A assessment, contested by the assessee, is no more res integra in view of hon’ble jurisdictional high court’s decision in Gopal Lal Badruka Vs. DCIT and others (2012) 346 ITR 106(AP). We therefore decline the assessee’s corresponding legal ground(s) in his cross appeal ITA No.927/Hyd/2015 to this affect. 8. We now come to various issues on merits in both these cross appeals. The Revenue’s first substantive grievance in its appeal ITA No.902/Hyd/2015 seeks to revive section 36(i)(iii) interest disallowance of Rs.86,34,421…

Alluri Krishna Reddy, Hyd, Hyderabad vs. DCIT, Central Circle-1, Hyd, Hyderabad

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahuassessment Year: 2007-08

…uch a course of action i.e., taking other issues as well whilst framing sec.143(3) r.w.s 153A assessment, contested by the assessee, is no more res integra in view of hon’ble jurisdictional high court’s decision in Gopal Lal Badruka Vs. DCIT and others (2012) 346 ITR 106(AP). We therefore decline the assessee’s corresponding legal ground(s) in his cross appeal ITA No.927/Hyd/2015 to this affect. 8. We now come to various issues on merits in both these cross appeals. The Revenue’s first substantive grievance in its appeal ITA No.902/Hyd/2015 seeks to revive section 36(i)(iii) interest disallowance of Rs.86,34,421…

ACIT, Circle-1(1), Hyd, Hyderabad vs. Alluri Krishna Reddy, Hyd, Hyderabad

Bench: Shri S.S. Godara & Shri Laxmi Prasad Sahuassessment Year: 2007-08

…uch a course of action i.e., taking other issues as well whilst framing sec.143(3) r.w.s 153A assessment, contested by the assessee, is no more res integra in view of hon’ble jurisdictional high court’s decision in Gopal Lal Badruka Vs. DCIT and others (2012) 346 ITR 106(AP). We therefore decline the assessee’s corresponding legal ground(s) in his cross appeal ITA No.927/Hyd/2015 to this affect. 8. We now come to various issues on merits in both these cross appeals. The Revenue’s first substantive grievance in its appeal ITA No.902/Hyd/2015 seeks to revive section 36(i)(iii) interest disallowance of Rs.86,34,421…

K.B.Rolling Mills Private Limited, Ranga Reddy vs. Asst. Commissioner of Income Tax, Central Circle-3(1), Hyderabad

Appeals are allowed in above terms

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…terms that such a search assessment in absence of any incriminating material found or seized during the course of search is not sustainable. The Revenue’s case in light of the hon'ble jurisdictional high court’s decision in Gopal Lal Bhadruka Vs. DCIT (2012) [346 ITR 106] (AP) CIT Vs. Rajkumar Arora [367 ITR 517] (All) & E.N.Gopa Kumar Vs. CIT (2016) [390 ITR 131 (Kerala) is that the department can very well initiate/frame Section 153A assessments for determining total income of an assessee involving Section 132 search action. We find no substance in the latter’s preceding arguments since the hon'ble jurisdiction…

K.B.Rolling Mills Private Limited, Ranga Reddy vs. Asst. Commissioner of Income Tax, Central Circle-3(1), Hyderabad

Appeals are allowed in above terms

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…terms that such a search assessment in absence of any incriminating material found or seized during the course of search is not sustainable. The Revenue’s case in light of the hon'ble jurisdictional high court’s decision in Gopal Lal Bhadruka Vs. DCIT (2012) [346 ITR 106] (AP) CIT Vs. Rajkumar Arora [367 ITR 517] (All) & E.N.Gopa Kumar Vs. CIT (2016) [390 ITR 131 (Kerala) is that the department can very well initiate/frame Section 153A assessments for determining total income of an assessee involving Section 132 search action. We find no substance in the latter’s preceding arguments since the hon'ble jurisdiction…

K.B.Rolling Mills Private Limited, Ranga Reddy vs. Asst. Commissioner of Income Tax, Central Circle-3(1), Hyderabad

Appeals are allowed in above terms

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

…terms that such a search assessment in absence of any incriminating material found or seized during the course of search is not sustainable. The Revenue’s case in light of the hon'ble jurisdictional high court’s decision in Gopal Lal Bhadruka Vs. DCIT (2012) [346 ITR 106] (AP) CIT Vs. Rajkumar Arora [367 ITR 517] (All) & E.N.Gopa Kumar Vs. CIT (2016) [390 ITR 131 (Kerala) is that the department can very well initiate/frame Section 153A assessments for determining total income of an assessee involving Section 132 search action. We find no substance in the latter’s preceding arguments since the hon'ble jurisdiction…