ASHA RANI AGARWAL,RANIKHET, ALMORA V. DCIT/ACIT, CENTRAL CIRCLE, HALDWANI

ITSSA 1/DDN/2025

AI Insights

The case involves Asha Rani Agarwal, the Assessee, who appealed against the order of the Commissioner of Income Tax (Appeals) - Noida-3, which confirmed a partial addition to her income as undisclosed income from house property. The appeal was filed after a delay, which the Tribunal condoned due to the Assessee's age and health issues, and the change of her authorized representative. The primary legal issue was whether the additions made to the Assessee's income following a search and seizure operation were justified in the absence of incriminating material. The Tribunal, referencing the Supreme Court's decision in Abhisar Buildwell Pvt. Ltd., ruled that the additions were not justified as no incriminating material was found during the search.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714345 (ITAT-DEHRADUN)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Other Referred Cases: Abhisar Buildwell Pvt. Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.K. CHATERJEE
• Keywords: Condonation of delay; Search and seizure
• Section: 132; 153A

Judgement Text

" 1 IT (SS)A No. 1/DDN/2025 Asha Rani Agarwal Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [DELHI BENCH: “DEHRADUN” NEW DELHI] BEFORE SHRI S. RIFAUR RAHMAN,ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER I.T(SS)A. No. 1/DDN/2025 (A.Y 2018-19) Asha Rani Agarwal 13, Mall Road Ranikhet, Almora, Uttarakhand PAN: AFMPA6208H Vs. DCIT/ACIT Income Tax Office Purana Compound, Nainital Road, Uttarakhand Appellant Respondent Assessee by None Revenue by Sh. S. K. Chaterjee, CIT DR Date of Hearing 10/07/2025 Date of Pronouncement 06/08/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Commissioner of Income Tax (Appeals)- Noida-3 (‘Ld. CIT(A)’ for short), Delhi dated 06/02/2025 for the Assessment Year 2021-22. 2. There is a delay of 40 days in filing the appeal.An application for condition of delay has been filed by the Assessee contending that the Assessee is a senior citizen, aged about 74 years and owing to which it has become difficult for her to personally keep a track of my pending litigation compliance, especially since the Assessee has been advised to avoid exertion and disengage from strenuous activities. Further stated that, the Authorized Representative/CA who was previously engaged by Printed from counselvise.com 2 IT (SS)A No. 1/DDN/2025 Asha Rani Agarwal Vs. DCIT the Assessee to look after my tax affairs has also relinquished his authorization thereby making it difficult for the Assessee to arrange her affairs in order. Further submitted that the Assessee recently engaged another counsel and upon his advice, the captioned appeal along with this affidavit seeking condonation of delay is being filed. 3. For the reason stated in the application for condonation of delay, the delay of 40 days of filing the appeal is hereby condoned. 4. Brief facts of the case are that, the assessee is an Individual filed return of income at Rs. 4,56,870/-. A search and seizure operation u/s 132 of the Income Tax Act, 1961 ('Act' for short), was carried out on the business and residential premises of Shri Kashmiri Lal Agarwal & Others Group of Cases on 25.04.2018. A notice u/s 153A of the Act was issued to the Assesse, requiring to file return of income. In compliance, return of income was filed declaring total income of Rs 4,56,870/- and assessment was completed u/s 153A of the Act on a total income of Rs.5,57,670/- after making addition of Rs. 1,00,800/- as Undisclosed Income from House Property and also invoked the provision of Section115BBE of the Act. 5. As against the assessment order dated 22/06/2021, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order Printed from counselvise.com 3 IT (SS)A No. 1/DDN/2025 Asha Rani Agarwal Vs. DCIT dated 24/09/2024, confirmed the partial addition of Rs. 59,170/- made on account of undisclosed income from house property. 6. None appeared for the Assessee. Considering the issue involved in the present Appeal we deem it fit to decide the Appeal on hearing the Ld. Department's Representative and perusing the material available on record. 7. The Ld. Department's Representative relying on the orders of the Lower Authorities, sought for dismissal of the Appeal of the Assessee contending that the Assessee has not disclosed the rental income from the second property owned by the Assessee and the Ld. CIT(A) rightly calculated the deemed annual let out value @ Rs. 9 per square feet per month which requires no interference at the hands of the Tribunal. 8. We have heard the Ld. Department's Representative and perused the material available on record. As could be seen from the assessment order, the assessment has been completed u/s 153A of the Act. The addition has been made de-hors the incriminating material found during the course of search. 9. The Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd. (supra) held that addition cannot be made in the absence of any incriminating material found during the course of search. The relevant Printed from counselvise.com 4 IT (SS)A No. 1/DDN/2025 Asha Rani Agarwal Vs. DCIT portion of the Judgment of Hon'ble Supreme Court are reproduced as under:- “14. In view of the above and for the reasons stated above, it is concluded as under: iv) In case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. However, the completed/unabated assessments can be re- opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfillment of the conditions as envisaged/mentioned under sections 147/148 of the Act and those powers are saved.\" 10. By respectfully following the ratio laid down by the Hon'ble Supreme Court in the case of Abhisar Buildwell (supra), considering the fact that no incriminating materials/documents or any other evidence was found or seized during the course of search proceedings which resulted in addition against the Assessee, we quash the assessment order and the order of the Ld. CIT(A). 11. In the result, appeal of the Assessee is allowed. Order pronounced in the open court on 06th August, 2025 (S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 06 .08.2025 R.N, Sr.P.S* Printed from counselvise.com 5 IT (SS)A No. 1/DDN/2025 Asha Rani Agarwal Vs. DCIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com "