D.C.I.T.(OSD), CENTRAL CIRCLE, AGRA V. SH. MANOJ KUMAR GOYAL, AGRA

ITA 190/AGR/2019

AI Insights

The case involves an appeal by the revenue against the decision of the CIT(A) which annulled the assessment of Sh. Manoj Kumar Goyal for the Assessment Year 2014-15. The assessment was initially based on alleged unaccounted investments in land, derived from loose papers seized during a search operation. The primary legal issue was the validity of the assessment in the absence of a notice under section 143(2) of the Income Tax Act, 1961, after the return of income was filed. The CIT(A) found the assessment to be void ab initio, a decision which was upheld by the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 295055 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Other Referred Cases: ACIT vs. Hotel Blue Moon (321 ITR 362), CIT vs. Sri Moins Iqbal, Sri Siraj Iqbal (ITA No.168-169 of 2009 dated 28-07-2017)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANURAG SINHA; LD
• Assessee Lawyers: SUKESH KUMAR JAIN LD
• Keywords: Unexplained investment; Loose papers
• Section: 143(3); 143(2); 153A

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.190/Agr/2019 (िनधा \u000fरणवष\u000f / Assessment Year: 2014-15) DCIT (Central Circle) Agra बनाम/ Vs. Sh. Manoj Kumar Goyal 22, Nehru Nagar, Agra \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No.ABCPG-3816-F (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri Anurag Sinha, Adv.-Ld. AR थ कीओरसे/Respondent by : Shri Sukesh Kumar Jain-Ld. CIT (DR) सुनवाईकीतारीख/Date of Hearing : 12-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2014-15 arises out of an order of learned Commissioner of Income Tax (Appeals)-IV, Kanpur [CIT(A)] dated 28-03-2019 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 29-03-2016. The assessee was subjected to search on 12-11-2013 and notice u/s 153A was issued on 25-06-2015 in response to which the assessee filed return of income on 16-12-2015 declaring income of Rs.103.36 Lacs. 2. Based on certain calculations as written in loose papers as seized from the premises of the assessee during search (Page nos. 39 to 45 2 of Annexure LP-1), Ld. AO alleged that the assessee made investment of Rs.969.77 Lacs in certain land. The said calculation was hand- written at the back of Page No.39. The assessee denied the same and stated that the paper did not relate to him and no such financial transaction as noted therein was entered into by him. The assessee explained that Page No.45 contained land details which were duly accounted for in AY 2007-08. The Ld. AO held that entries mentioned on rest of the pages belonged to the assessee and therefore, Page No.39 also pertains to the assessee. The Ld. AO observed that the assessee purchased 66.24 Beeghas of land at 14.50 Lacs per Beegha and the total land deal was for Rs.969.77 Lacs. The same was added to the income of the assessee as unaccounted investment in land while framing the impugned assessment. 3. During first appeal, the assessee raised a pertinent legal issue and stated that notice u/s 143(2) was issued before filing of return of income whereas no notice was issued after filing of return of income and therefore, the assessment was liable to be quashed. The same was subjected to remand proceedings. The Ld. CIT(A), after due consideration of material on record, observed that as per remand report notice u/s 143(2) was issued on 14-03-2016 whereas return of income was filed on 29-03-2016 vide acknowledgement no. 1253122961290316. The notice u/s 143(2) could be issued only after the said date. On these facts, Ld. CIT(A) relied on the decision of Hon’ble Apex Court in the case of ACIT vs. Hotel Blue Moon (321 ITR 362) and held that the impugned assessment was illegal and void-ab- 3 initio in the absence of notice u/s 143(2). Accordingly, the assessment was annulled and quashed. Aggrieved, the revenue is in further appeal before us. Our findings and Adjudication 4. The factual findings as rendered by Ld. CIT(A) remain uncontroverted before us. It emerges that no notice u/s 143(2) has been issued after the date of filing of return of income by the assessee. In such a case, reliance on the decision of Hon’ble Apex Court in the case of ACIT vs. Hotel Blue Moon (321 ITR 362) could not be faulted with. In fact, the decision of Hon’ble Allahabad High Court in the case of CIT vs. Sri Moins Iqbal, Sri Siraj iqbal (ITA No.168-169 of 2009 dated 28-07-2017) also supports the conclusion of Ld. CIT(A). Since the impugned order has followed the ratio of binding judicial precedents, we see no reason to interfere in the same. 5. The appeal stand dismissed as indicated upon conclusion of hearing. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 7ा ियक सद8 /JUDICIAL MEMBER लेखा सद8 /ACCOUNTANT MEMBER Dated: 22.04.2025 4 आदेश की :ितिलिप अ<ेिषत / Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु2/CIT 4. िवभागीय ितिनिध/DR 5. गाड8फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "