DY COMMISSIONER OF INCOME TAX , KOLKATA V. .PRIMARC RETAIL STORES PVT LTD, KOLKATA

ITSSA 9/KOL/2024

AI Insights

The case involves multiple appeals by the revenue against the orders of the Ld. Commissioner of Income Tax (Appeals), Kolkata, concerning various assessment years from 2013-14 to 2017-18. The appeals were related to the validity of additions made by the Assessing Officer under section 153A of the Income-tax Act, 1961, following a search operation under section 132 of the Act on the Primarc Group of companies. The primary legal issue was whether additions could be made in completed/non-abated assessments in the absence of incriminating material found during the search. The court referenced the Supreme Court's decision in Pr. CIT Vs. Abhiser Buildwell (P) Ltd. to support its ruling.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298953 (ITAT-KOLKATA)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2016-2017
• 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: Bogus
• Section: 250; 132; 153A; 20

Judgement Text

"आयकर अपीलीय अिधकरण, कोलकाता पीठ ‘A’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T(SS).A. No.06/Kol/2024 Assessment Year: 2013-14 & I.T(SS).A. Nos.08 to 10/Kol/2024 Assessment Years: 2015-16, 2016-17 & 2014-15 DCIT, Kolkata .………. Appellant vs. Primarc Retails Stores Pvt. Ltd. ……..… Respondent 6A, Elgin Road, Bhawanipur, Kolkata-700020. (PAN: AADCP3619G) & I.T(SS).A. No.07/Kol/2024 Assessment Year: 2013-14 DCIT, Kolkata .………. Appellant vs. Primarc Projects Pvt. Ltd. ……..… Respondent 6A, Elgin Road, Bhawanipur, Kolkata-700020. (PAN: AADCP8058P) & I.T(SS).A. Nos.11 & 12/Kol/2024 Assessment Years: 2015-16 & 2017-18 DCIT, Kolkata .………. Appellant vs. Primarc Pecon Retails Stores Pvt. Ltd. ……..… Respondent 6A, Elgin Road, Bhawanipur, Kolkata-700020. (PAN: AACCT5910H) 2 ITSSA Nos. 06 to 12/Kol/2024 AYs 2013-14 to & 2017-18 Appearances by: Shri Subhendu Datta, CIT, DR appeared on behalf of the Appellant Shri Manish Tiwari, FCA appeared on behalf of the Respondent Date of concluding the hearing: October 17, 2024 Date of pronouncing the order: December 20 , 2024 आदेश / ORDER Per Bench : All the captioned appeals have been preferred by the revenue against the separate orders of evenly dated 15.12.2023 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 Assessment Years (AYs) 2013-14 to 2017-18. 2. Common issue involved in all the captioned appeals is relating to the validity of additions made by the Assessing Officer (in short “AO”) in the assessments carried out for different assessment years u/s. 153A of the Act, pursuant to the search action carried out u/s. 132 of the Act in the case of the Primarc Group of companies on 05.01.2021. The assessees, herein, belong to the said Primarc Group of companies and were covered in the said search action. Therefore, all the captioned appeals were heard together and are being disposed of by this common, order for the sake of convenience. 3. ITA No. 06/Kol/2024 in the case of Primarc Retails Stores Pvt. Ltd. for AY 2013-14 is taken as lead case for the purpose of narration of facts. ITA NO. 06/KOL/2024, AY: 2013-14 : 4. At the outset, the Ld. Counsel for the assessee inviting our attention to the impugned order of the Ld. CIT(A) has submitted that the impugned 3 ITSSA Nos. 06 to 12/Kol/2024 AYs 2013-14 to & 2017-18 additions were made by the AO by treating the unsecured loans received by the assessee as bogus. He has further demonstrated from the order of the Ld. CIT(A) that in this case, the original assessment stood completed and not abated on the date of search action. No incriminating material, whatsoever, was found during the course of search action. The Ld. CIT(A), therefore, relying on the decision of the 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, deleted the impugned addition made by the AO in this case. 5. The Ld. DR has been fair enough to admit that the issue involved in this appeal 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 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 appeal of the revenue and the same is accordingly, dismissed. ITA NOS. 07 TO 10, 07, 11 & 12/KOL/2024: 6. The facts and issue involved in all the captioned appeals are identical. Our findings given above will mutatis mutandis apply to all the 4 ITSSA Nos. 06 to 12/Kol/2024 AYs 2013-14 to & 2017-18 appeals. Therefore, all the appeals of the revenue are ordered to be dismissed. 7. In the result, all the appeals of the revenue stand dismissed. Order is pronounced in the open court on 20.12.2024. Sd/- Sd/- [Rakesh Mishra] [Sanjay Garg] लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member Dated:20 .12.2024. JD Sr. P.S Copy of the order forwarded to: 1. Appellant – 2. Respondent – 3. CIT(A), Kolkata-20. 4. Pr. CIT 5. CIT(DR), True Copy By Order Assistant Registrar, ITAT, Kolkata "