DCIT CC-1(4), KOLKATA, KOLKATA V. MCK PGE PROJECT LLP, KOLKATA

ITSSA 59/KOL/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals), Kolkata, which had deleted the additions made by the Assessing Officer for the assessment year 2014-15. The additions were based on post-search inquiries and statements, which the CIT(A) found to be without jurisdiction following the Supreme Court's ruling in PCIT v. Abhisar Buildwell P. Ltd. The Tribunal agreed with the CIT(A)'s findings and dismissed the Revenue's appeal, confirming that the assessment for the year in question had not abated and could not be reopened based on the materials post-search.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25198 (ITAT-KOLKATA)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Other Referred Cases: PCIT v. Abhisar Buildwell P. Ltd. (2023) 454 ITR 212 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Assessee Lawyers: MANISH TIWARI
• Section: 153; 132; 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM IT(SS)A No.59/KOL/2024 (Assessment Year:2014-15) DCIT, CC-1(4), 110, Shantipally, Aaykar Bhavan Poorva, 3 rd Floor, Kolkata-700107, West Bengal Vs. MCK PGE Projects LLP 6A Elgin Road, Bhowanipore Kolkata-700020, West Bengal (Appellant) (Respondent) PAN No. AATFM6E09B Assessee by : Shri Manish Tiwari, AR Revenue by : Shri P.N. Barnwal, DR Date of hearing: 18.12.2024 Date of pronouncement : 31.12.2024 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals), Kolkata-20 (hereinafter referred to as the “Ld. CIT(A)”] dated 29.12.2023 for the AY 2014-15. 02. At the outset, we note that there is 87 days in filing the appeal by the Revenue for which the condonation petition has been moved by the Revenue, wherein it has been stated that in order to file the appeal, the file has to go through various stages in the hierarchy for obtaining approvals and hence, the delay of 87 days in filing the appeal. Considering the contents of the condonation and the arguments of the Page | 2 IT(SS)A No. 59/KOL/2024 MCK PGE project LLP; A.Y. 2014-15 rival parties, we are quite convinced about the sufficiency and genuineness of the reasons for delay and accordingly, condone the same by admitting the appeal for adjudication. 03. At the outset, we note that the search u/s 132 of the Act was conducted on the Primarc Group on 05.01.2021, of which assessee is a related entity. Accordingly, notice u/s 153A of the Act was issued on 03.02.2022. The assessee complied with the said notices while filing the return of income on 08.02.2022. The impugned assessment year is 2014-15, therefore, undisputedly, the assessment as not abated on the date of search or has attained finality. Therefore, the ld. Assessing Officer had jurisdiction to make the addition in an unabated assessment year on the date of search only with a reference to the incriminating search material found and seized during the course of search. However, the addition was made on the basis of post search enquiry and statements recorded which were deleted by the ld. CIT(A) by recording a clear-cut finding that in view of the decision of Hon’ble Apex Court in the case of PCIT v. Abhisar Buildwell P. Ltd. (2023)454 ITR 212(SC), the AO lacked jurisdiction to make addition and thus additions made by the ld. Assessing Officer were not sustainable as the same were without jurisdiction. Thereafter, the ld. CIT(A) in Para no.3.4 (f), noted that the impugned assessment year i.e. AY 2014-15, falls beyond even the 6 assessment years preceding the date of search which the ld. Assessing Officer has jurisdiction to reopen u/s 153 of the Act and therefore, otherwise also the assessment has been wrongly reopened by the ld. Assessing Officer u/s 153A of the Act. Considering these facts and circumstances and the findings of fact Page | 3 IT(SS)A No. 59/KOL/2024 MCK PGE project LLP; A.Y. 2014-15 recorded by the ld. CIT(A), we hereby dismiss the appeal of the Revenue. 04. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 31.12. 2024. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 31.12.2024 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "