AMAR DEVI FAMILY WELFARE TRUST,NEW DELHI V. ACIT, CENTRAL CIRCLE-17, , NEW DELHI

ITA 8055/DEL/2018

AI Insights

The case involves a series of appeals by the Amar Devi Family Welfare Trust and Metenere Global Ltd. against the assessments made by the Assistant Commissioner of Income Tax (ACIT), Central Circle-17, New Delhi, following a search and seizure operation under sections 132/133A of the Income Tax Act, 1961. The primary legal issue was the validity of the assessments made under section 153A read with section 143(3) of the Act, concerning the limitation period for completing such assessments post-search. The Tribunal examined whether the assessments were completed within the permissible time frame as stipulated by section 153B of the Act, which was contested by the appellants.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396654 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: PRADIP DINODIA; R.K. KAPOOR
• Keywords: Search and seizure; Competent authority
• Section: 143(3); 142(1); 153A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 5245/Del/2018: Asstt. Year : 2010-11 ITA No. 5246/Del/2018 : Asstt. Year : 2011-12 ITA No. 8055/Del/2018 : Asstt. Year : 2012-13 Amar Devi Family Welfare Trust, F-73, Preet Vihar, New Delhi-110092 Vs ACIT, Central Circle-17, New Delhi (APPELLANT) (RESPONDENT) PAN No. AAATA4455B ITA No. 5811/Del/2017: Asstt. Year : 2013-14 ITA No. 5812/Del/2017 : Asstt. Year : 2014-15 ACIT, Central Circle-17, New Delhi Vs Amar Devi Family Welfare Trust, 1st Floor, B-18, Model Town Road, Jalandhar, Punjab-144005 (APPELLANT) (RESPONDENT) PAN No. AAATA4455B ITA No. 5809/Del/2017: Asstt. Year : 2012-13 ITA No. 5810/Del/2017 : Asstt. Year : 2013-14 ACIT, Central Circle-17, New Delhi Vs M/s Metenere Global Ltd., 138-139, Ghazipur, Delhi-110096 (APPELLANT) (RESPONDENT) PAN No. AAACG0722E Assessee by : Sh. Pradip Dinodia, Adv. & Sh. R. K. Kapoor, CA Revenue by : Sh. Jitender Singh, CIT-DR Date of Hearing: 20.05.2025 Date of Pronouncement: 29.05.2025 ITA Nos. 5811 & 5812/Del/2017 ITA Nos. 5245, 5246 & 8055/Del/2018 Amar Devi Family Welfare Trust ITA Nos. 5809 & 5810/Del/2017 Metenare Global ltd. 2 ORDER Per Bench: The instant batch of seven cases pertains to the twin assessees herein namely, M/s Amar Devi Family Welfare Trust and M/s Metenare Global Ltd. All other relevant details thereof stand tabulated as under: Sl. N o. A.Y . IT A N os . Appellant Re sp on den t Orde r pass e d ag ai ns t Pro ce e di ngs u/ s 1- 2 201 2- 13 & 201 3- 14 580 9 & 581 0/ Del /2 01 7 ACIT Mete n a re G lob al Lt d. C IT(A) -3 0, N ew D elhi In c as e N os . 202/ 1 6- 1 7/ 2 8 65 & 203/ 1 6- 1 7/ 2 8 66 Date d 30 .0 6.2 0 17 143 ( 3) /153 A 3- 4 201 3- 14 & 201 4- 15 581 1 & 581 2/ Del /2 01 7 ACIT Am ar De vi F amily We l f a re T rus t C IT(A) -3 0, N ew D elhi In c as e N os . 205/ 1 6- 1 7/ 2 8 68 & 206/ 1 6- 1 7/ 2 8 69 Date d 30 .0 6.2 0 17 143 ( 3) /153 A 5- 6 201 0- 11 & 201 1- 12 524 5 & 5 246 / Del/2 0 18 Amar Dev i Fam ily Wel fa re T rus t ACIT C IT( A)- 2 7, N ew D elhi In c as e N os . 4 95 & 4 96/ 1 6- 1 7 Date d 18 .0 5.2 0 18 143 ( 3) /153 A 7 201 2- 17 3 805 5/ Del/ 2 01 8 Amar Dev i Fam ily Wel fa re T rus t ACIT C IT( A)- 3 0, N ew D elhi In c as e N os . 204/ 1 6- 1 7/ 2 8 67 Date d 22 .1 1.2 0 18 143 ( 3) /153 A 2. Heard both these assessees as well as department at length. Case files perused. 3. Both the learned representatives very fairly inform us that M/s Amar Devi Family Welfare Trust and M/s Metenare Global Ltd., have been “substantively” and “protectively” assessed by the lower authorities in furtherance to the search action carried out in the former’s case on 27.12.2013. And that the first and foremost substantive issue which arise for our apt adjudication is that of limitation in framing the corresponding impugned ITA Nos. 5811 & 5812/Del/2017 ITA Nos. 5245, 5246 & 8055/Del/2018 Amar Devi Family Welfare Trust ITA Nos. 5809 & 5810/Del/2017 Metenare Global ltd. 3 assessments framed u/s 143(3) r.w.s. 153A of the Act; all dated 30.12.2016. 4. It transpires in this factual backdrop that the learned CIT(A) identical findings; and more particularly, in the “lead” assessment year 2013-14, involving the Revenue’s appeal ITA No. 5811/Del/2017, has decided the instant issue as under: “6.2 Findings:- The finding are as under: 6.3 I have carefully considered assessment order, written submission/objections, case laws relied upon and oral arguments of Ld.AR. The objections/arguments of the appellant are discussed as under:- (i) In the case of the assessee, search and seizure action was carried out u/s 132/133A of the Act, on 27.12.2013 and the last warrant of search was executed on 19.02.2014 (however, the A.O. has wrongly mentioned on 24.01.2014), where bank locker was operated. (ii) Subsequently, notice u/s 153A of the Act, was issued on 14.10.2014 and in response to this notice, return of income was filed on 25.08.2015, declaring total income at Rs. 90,54,359/-. The statutory notices u/s 143(2) of the Act was issued on 24.9.2015, and subsequently, notice u/s 142(1) of the Act, along with questionnaire was issued on 29.10.2015. Finally, the assessment u/s 153A/143(3) of the Act, was completed on 30.12.2016. (iii) In the appellate proceedings, the appellant has submitted that the last warrant of search was executed on 19.02.2014 and the Panchnama was also drawn on 19.02.2014. It is further submitted by the AR that the limitation for completing the assessment u/s 153 A/l 43(3) of the Act, will be determined by the provisions of section 153B of the Act. Therefore, assessment has to be completed within 2 years from the end of the year, in which last warrant of search was executed. Accordingly, it is submitted by the AR that in the case ITA Nos. 5811 & 5812/Del/2017 ITA Nos. 5245, 5246 & 8055/Del/2018 Amar Devi Family Welfare Trust ITA Nos. 5809 & 5810/Del/2017 Metenare Global ltd. 4 of the appellant, the assessment u/s 153 A/143(3) of the Act, has to be completed on or before 31.3.2016. However, in the case of the appellant, the A.O. has completed assessment u/s 153A/143(3) of the Act, on 30.12.2016. In this regard, AR has submitted that by mistake in the ground of appeal the date of limitation for completing the assessment was wrongly mentioned as 31.12.2015, as against the correct date of 31.3.2016. Accordingly, it is submitted that the correct date is to be considered in our arguments. (iv) In the appellate proceedings the appellant has further submitted that in case, the time limit is extended beyond 31.3.2016, then the A.O. is obliged to inform the reasons of the same, during the assessment proceedings and also in the assessment order, under which clause of explanation to section 153B of the Act, is applicable, in order to increase the time limitation beyond 31.3.2016, for completion of assessment u/s 153A/143(3) of the Act and the same is clear from the assessment order as no such reasons have been mentioned by the AO in the assessment order. (v) During the appellate proceedings, the appellant has received the copy of the reference letter dated 24.02.2016, a copy of which has been filed by the appellant, in the appellant proceedings. The A.O. has requested some information, through the Indian competent authority, from the competent authority of UAE. In this regard, the AR has submitted objection to such reference, as under:  The information has been sought in the case of the appellant for F.Y. 2011- 12 to F.Y. 2012-13, in the above referred letter dated 24.02.2016.  In part 2 of the Performa, at S. No. 9, the information sought is \"Time Period or taxable event from which or in relation to which the information is sought:\", is mentioned as F.Y. 2009-10 to F.Y. 2013-14.  According to the information exchange manual issued by the CBDT the reference should have been made at least 3 months before the case is getting time barred.  The transactions of advance was from 2 NRI/individual namely, Ms. Ayesha Dinesh Sarna and Shri Rajeev Kumar, who have advanced an "