DY. COMMISSIONER OF INCOME TAX-2, KANPUR V. KULDEEP SINGH SUKHVINDER SINGH & OTHERS, KANPUR

ITSSA 694/LKW/2018

AI Insights

The case involves appeals by the Dy. Commissioner of Income Tax, Central Circle-I, Kanpur against M/s Kuldeep Singh & Sukhvinder Singh & Others, concerning orders passed under section 250(6) of the Income Tax Act, 1961. The appeals were based on the contention that the CIT(A) erred in annulling the orders passed by the AO under section 153C r.w.s. 153 of the Act. The main issues revolved around the interpretation and inclusion of annexures in the satisfaction note and the proper reference to seized material. However, the maintainability of the appeals was questioned due to the tax effect being below the prescribed threshold as per the recent circular from the Department.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360815 (ITAT-LUCKNOW)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Assessee Lawyers: SAMRAT CHANDRA
• Keywords: Set aside; Tax effect

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW ‘A’BENCH, LUCKNOW BEFORE SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. NIKHIL CHOUDHARY, ACCOUNTANT MEMBER IT(SS)A Nos. 694, 697 & 699/LKW/2018 A.Ys. 2009-10, 2012-13 & 2014-15 Dy. Commissioner of Income Tax, Central Circle-I, Kanpur, U.P. vs. M/s Kuldeep Singh & Sukhvinder Singh & Others, 111/A-23, Ashok Nagar, Kanpur, U.P. PAN:AAAAK4275C (Appellant) (Respondent) Assessee by: Sh. Samrat Chandra, C.A. Revenue by: Sh. R.K. Agarwal, CIT DR Date of hearing: 06.05.2025 Date of pronouncement: 21.05.2025 O R D E R PER NIKHIL CHOUDHARY, A.M.: All these appeals have been filed by the Department against the orders of the ld. CIT(A)-4, Kanpur dated 13.09.2018 passed under section 250(6) of the Income Tax Act, 1961 annulling the orders passed by the ld. AO under section 153C of the Income Tax Act r.w.s. 153 of the Act, 1961. The grounds of appeal in all these orders are identical and are accordingly as below:- “1. Whether on facts and circumstances of the case, the Ld. CIT[A] has erred in concluding that annexure to satisfaction note being undated was not part of the satisfaction note without appreciating that from reading of the satisfaction note dated 12.01.2016 along with its annexure, it is clear that it was part of satisfaction note recorded and reference to the relevant seized material was duly made in it. 2. That Ld. CIT (A) has failed to appreciate that annexure to the satisfaction is in continuation of the satisfaction note and is duly signed by the AO. 3. Whether on facts and circumstances of the case, the Ld. CIT(A) while deleting the addition for want of proper reference to seized material, has failed to appreciate the fact that details of seized material finds mention in the page no.-3 of the assessment IT (SS) A Nos.694, 697 & 699 /LKW/2018 A.Ys. 2009-10, 2012-13 & 2014-15 Kuldeep Singh & Sukhvinder Singh & Ors 2 order itself and therefore, additions made had direct linkage with the material found during the search. 4. That the appellant craves leave to add or amend any other more ground of appeal as state above as and when needs for doing so may arise. 5. The order of the Ld CIT(A) is erroneous in law and on facts of the case and is liable to be set aside and the order of the AO be restored.” 2. At the time of the taking up the appeal for hearing, Sh. Samrat Chandra, C.A. [hereinafter referred to as the ld. AR] pointed out that the appeals in these three cases were not maintainable as the tax effect in all these cases were below the threshold of Rs. 60 Lacs, which was required for the purposes of filing of Departmental appeals vide Circular No. 09/2024 in F No.279/Misc./M-74/2024 ITJ dated 17.09.2024. It was submitted that since the Circular also applied to appeals pending before the Tribunal / High Courts and there were instructions that these may be withdrawn by the Department, the appeals in this regard were not maintainable. Accordingly, it was prayed that the appeals may be dismissed on this account. 3. On the other hand, Sh. R.K. Agarwal, ld. CIT DR acknowledged the contents of the Circular No. 09/2024 and submitted that an appropriate decision may be taken in the matter. 4. We have duly considered the submissions made before us and the contents of Circular No. 09/2024 and it is observed that in IT(SS)A No.694/LKW/2018, the tax effect as per the Form No. 36 is Rs.20,31,400/-, in IT(SS)A No. 697/LKW/2018, the tax effect is Rs.36,51,046/- and the tax effect in IT(SS)A No.699/LKW/2018 was Rs.40,00,049/-. As in all these cases, the tax effect is below the threshold of Rs.60 Lacs as laid down in Circular No.09/2024 dated 17.09.2024 and there exist clear cut indications to the Income Tax Department to withdraw such appeals, the said appeals are not maintainable. Accordingly, they are dismissed as such. IT (SS) A Nos.694, 697 & 699 /LKW/2018 A.Ys. 2009-10, 2012-13 & 2014-15 Kuldeep Singh & Sukhvinder Singh & Ors 3 5. In the result, all the three appeals are dismissed. Order pronounced on 21.05.2025. Sd/- Sd/- [SUDHANSHU SRIVASTAVA] [NIKHIL CHOUDHARY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 21/05/2025 Sh Copy forwarded to: 1. Appellant – 2. Respondent – 3. CIT DR , ITAT, 4. CIT, 5. The CIT(A) By order Sr. P.S. "