DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -1(4), KOLKATA, KOLKATA V. PRIMARC PROJECTS PVT LTD, KOLKATA

ITSSA 39/KOL/2024

AI Insights

The case involves appeals by the Deputy Commissioner of Income Tax against Primarc Projects Pvt. Ltd. concerning the assessment years 2015-16 and 2016-17. The appeals were directed against the orders of the Ld. Commissioner of Income Tax (Appeals), Kolkata-20, which had deleted the additions made by the Assessing Officer regarding bogus loans. The main legal issue was whether additions could be made under section 153A of the Income-tax Act, 1961, in the absence of any incriminating material found during the search. The tribunal referenced the Supreme Court's decision in Pr. CIT Vs. Abhiser Buildwell (P) Ltd., which clarified that no additions can be made in cases of completed/non-abated assessments without incriminating material.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29759 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-08-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 15-04-2024
• Other Referred Cases: Pr. CIT Vs. Abhiser Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Bogus loan; Bogus
• Section: 143(3); 250; 153A; 153C

Judgement Text

" आयकर अपीलीय अिधकरण, कोलकाता पीठ ‘B’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Sanjay Awasthi, Accountant Member I.T.(SS).A. Nos.39 & 40/Kol/2024 Assessment Years: 2015-16 & 2016-17 Dy. Commissioner of Income Tax, .………. Appellant Central Circle-1(4), Kolkata vs. Primarc Projects Pvt. Ltd. ……..… Respondent 7th Floor, LA-1, Salt lake City, Bidhan Nagar, S.O. Salt Lake, West Bengal-700098. (PAN: AADCP8058P) Appearances by: Shri A. Kundu, CIT, DR appeared on behalf of the Appellant Shri Manish Tiwari, FCA appeared on behalf of the Respondent Date of concluding the hearing: August 29, 2024 Date of pronouncing the order: November 26, 2024 आदेश / ORDER Per Sanjay Garg, Judicial Member : Both the captioned appeals have been preferred by the revenue against the separate orders, evenly dated 28.12.2023, of the Ld. Commissioner of Income Tax, (Appeal), Kolkata-20 [hereinafter referred to as the “Ld. CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AYs 2015-16 and 2016-17. 2. Both the appeals are time barred by 47 days and separate applications for condonation of delay have been filed for both the years. Considering the averments made in the applications, the short delay in filing both the appeals is hereby condoned and the appeals are taken up for adjudication. 2 IT(SS)A Nos. 39 & 40/Kol/2024 Primarc Projects Pvt. Ltd., AYs 2015-16 & 2016-17 3. Since grounds are common and facts are identical, except variance in amount, we dispose of both the appeals by this consolidated order for the sake of convenience. 4. The sole issue involved in both the appeals is as to whether the additions can be made by the Assessing Officer (in short “the AO”) in an assessment carried out u/s.153A of the Act on reappreciation of the facts already available on file in the absence of any incriminating material found during the course of search action. 5. The admitted facts of the case are that the original assessment orders in both the appeals were passed u/s. 153C read with section 143(3) of the Act on 31.12.2017. Thereafter, a search action was carried out u/s. 132 of the Act in the case of the assessee on 05.01.2021. Admittedly, no incriminating material was found during the course of search action. The AO, however, made the impugned addition on account of bogus loan in the assessment carried out u/s. 153A of the Act vide order dated 31.03.2022. 6. The Ld. CIT(A), however, deleted the impugned addition made by the AO by relying upon the decision of Hon’ble Supreme Court in the case of “Pr. CIT Vs. Abhiser Buildwell (P) Ltd.” [2023] 149 taxmann.com 399 (SC), wherein the Hon’ble Supreme Court has held that in the case of non-abated/completed assessments, no addition can be made by the Assessing Officer in an assessment carried out u/s.153A of the Act in the absence of any incriminating material found during the search action. 7. The Ld. DR has been fair enough to admit that the issue involved in both the appeals is squarely covered by the aforesaid decision of the Hon’ble Supreme Court in the case Abhiser Buildwell (P) Ltd. (supra), wherein the Hon’ble Supreme Court has held that in 3 IT(SS)A Nos. 39 & 40/Kol/2024 Primarc Projects Pvt. Ltd., AYs 2015-16 & 2016-17 case of completed/non-abated assessment, no addition can be made by the Assessing Officer in an assessment carried out u/s.153A of the Act in the absence of any incriminating material found during the search action. Therefore, there is no merit involved in the appeals of the revenue and the same are accordingly, dismissed. 8. In the result, both the appeals of the revenue stand dismissed. Order is pronounced in the open court on 26.11.2024. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member Dated: 26.11.2024. JD Sr. P.S Copy of the order forwarded to: 1. Appellant – DCIT, Central Circle-1(4), Kolkata 2. Respondent – Primarc Projects Pvt. Ltd. 3. CIT(A), Kolkata-20. 4. Pr. CIT, 5. CIT(DR), True Copy By Order Assistant Registrar, ITAT, Kolkata 1. Date of Dictation 25.11.2024 2. Date on which the typed draft order is placed before the dictating Member and Other Member 25.11.2024 3. Date on which the approved order comes to the Sr. P.S /11/2024 4. Date on which the file goes to the Bench Clerk /11/2024 5. Date on which the file goes to the OS 6. Date of dispatch of the order "