DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, RANCHI, RANCHI V. M/S SHAKAMBARI BUILDERS PVT.LTD., KOLKATA

ITSSA 33/RAN/2022

AI Insights

The case involves appeals by both the assessee, Shakambari Builders Private Limited, and the revenue against the orders of the CIT(A) for the assessment years 2014-15 to 2019-20. The core issue revolved around the alleged incriminating material found during a search operation, which was used to make additions to the assessee's income. The tribunal examined whether the documents seized during the search constituted incriminating material justifying the additions made by the Assessing Officer. The tribunal found that the only documents relevant to the additions were part of the regular books of account of the assessee, and no unaccounted transactions were discovered. Consequently, relying on the Supreme Court's decision in Abhisar Buildwell, the tribunal annulled the assessments under Section 153C.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633563 (ITAT-RANCHI)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Other Referred Cases: Abhisar Buildwell vs. 459 ITR 212 (SC)
• Laws Referred To: Section 153C of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure; Bogus Share capital; Bogus

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER IT(SS)A No. 25 to 30/Ran/2022 (Assessment Years-2014-15 to 2019-20) Shakambari Builders Private Limited, 474, Rabindra Sarani, 1st Floor, Kolkata-700005 (West Bengal) PAN No. AAECS 6311 H Vs. A.C.I.T., Central Circle-1 Ranchi. Appellant/ Assessee Respondent/ Revenue IT(SS)A No. 32 to 35/Ran/2022 (Assessment Years-2014-15, 2015-16, 2018-19 & 2019-20) D.C.I.T., Central Circle-2 Ranchi. Vs. Shakambari Builders Private Limited, 474, Rabindra Sarani, 1st Floor, Kolkata-700005 (West Bengal) PAN No. AAECS 6311 H Appellant/ Revenue Respondent/ Assessee Assessee represented by Sri R.R. Mittal, A.R. Department represented by Smt. Rinku Singh, CIT-DR Date of hearing 09/06/2025 Date of pronouncement 09/06/2025 O R D E R PER: BENCH 1. IT(SS)A No. 25 to 30/Ran/2022 are the appeals filed by the assessee and IT(SS)A No. 32 to 35/Ran/2022 are the appeals filed by the revenue against the orders of the ld. CIT(A), Patna-3, Patna dated 27/05/2022, 01/06/2022 and 31/05/2022 for the A.Y. 2014-15 to 2019-20 respectively. As all the issues in both the appeals i.e. appeals of the assessee and the appeals of the revenue relate to the common issues of incriminating material, they are being disposed off by this common order. IT(SS)A No. 25 to 30/Ran/2022 & 32 to 35/Ran/2022 Shakambari Builders P Ltd. Vs ACIT/DCIT 2 2. Sri R.R. Mittal, ld A.R. is represented on behalf of the assessee and Smt. Rinku Singh, ld. CIT-DR is represented on behalf of the revenue. The ld. AR of the assessee drew our attention to the assessment order for the A.Y. 2014-15 passed under Section 153C of the Act. It was submitted by the ld. AR of the assessee that there was a search and seizure operation done in the Palriwal Group on 07/02/2019 and a consequential search was done on Shri Suresh Kumar Jalan on 09/02/2019. In the course of search, one document marked SKJ-01 containing two pages was found. The SKJ-01 admittedly had multiple pages of which only two pages were found to be relevant. It was a submission that the total transactions in those two pages were to an extent of ₹ 5.00 lacs and the consequential addition on the basis of such seized material was made in the A.Y. 2015-16. It was a submission that relying on the foundation of the said two pages, the Assessing Officer had also made disallowance of various funds received by the assessee from various other companies by holding the same as bogus share capital received. It was a submission that on appeal before the ld. CIT(A), the ld. CIT(A) had deleted the additions in respect of the share capitals received by the assessee by holding that there was no incriminating material. It was a submission that the addition in respect of share capital had been deleted on the ground that the companies which had been held to be providing bogus share capitals had already been taxed in the A.Y. 2011-12 and consequently the funds provided to the assessee during the impugned assessment years were liable to be accepted. It was a submission by the ld. Authorised Representative that however, the ground in regard to the challenge to the assessment order under Section 153C of the Act had been left unanswered and consequently IT(SS)A No. 25 to 30/Ran/2022 & 32 to 35/Ran/2022 Shakambari Builders P Ltd. Vs ACIT/DCIT 3 against the assessee. It was further a submission that for the A.Y. 2015-16, the ld. CIT(A) had deleted the addition of ₹ 5.00 lacs made on the basis of said alleged incriminating document of SKJ-01. The ld. CIT(A) had held that the said amounts were recorded in the books of account of the assessee. It was a submission that as no incriminating material has been found in the case of assessee, in view of the decision of Hon'ble Supreme Court in the case of Abhisar Buildwell reported in 459 ITR 212 (SC), the assessment orders passed under Section 153C is liable to be annulled. 3. In reply, the ld. CIT-Departmental Representative vehemently supported the order of Assessing Officer. It was a submission that an incriminating document in the form of SKJ-01 had been found. It was a submission that the addition of ₹ 5.00 lacs had been made for the A.Y. 2015-16. It was a submission that , it was only on account of the search that the shares supplications moneys were brought out and this is resulted in the additions. It was a submission that the order of the ld. CIT(A) deleting the additions are liable to be reversed. 4. We have considered the rival submissions. A perusal of the facts in the present case, clearly shows that the only alleged incriminating material found in the course of search is two pages being pages 14 and 15 of SKJ-01. The said document only relates to an addition of ₹ 5.00 lacs. The said amount of ₹ 5.00 lacs has also been routed only through the books of account of the assessee and the Assessing Officer in the assessment order refers to the entries in the ledger accounted maintained by the assessee, therefore, it is clear that the said two pages which are handwritten documents are part of the entries in the books of accounts regularly maintained by the assessee and no unaccounted IT(SS)A No. 25 to 30/Ran/2022 & 32 to 35/Ran/2022 Shakambari Builders P Ltd. Vs ACIT/DCIT 4 transactions have been found in the case of the assessee. Every single transaction has been found as recorded in the books of the assessee. This being so, the documents being pages 14 and 15 of SKJ-01, as has been relied upon by the Assessing Officer for making the additions for the A.Y. 2015-16 loses its character of an incriminating document in so far as the said entries in the documents are found in the regular books of account of the assessee. As no other incriminating material has been found in the case of assessee in view of the principles laid down by the Hon'ble Supreme Court in the case of Abhisar Buildwell reported in 459 ITR 212 (SC), the additions as made by the Assessing Officer and as deleted by the ld. CIT(A) would no more be considered in so far as the assessment per se under Section 153C itself is liable to be annulled and we do so. This being so, the appeals filed by the assessee stands allowed and the appeals filed by the revenue stands dismissed. 5. In the result, all the appeals of assessee are allowed and the appeals of the revenue are dismissed. Order announced in open court on 09th June, 2025. Sd/- Sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated: 09/06/2025 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Ranchi "