M/s Verma Transport Company (SAIL), Jalandhar V. DCIT, CC-II, Chandigarh

ITA 1260/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6565 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 24-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 153A; 132; 139

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 1260/CHD/2017 ASSESSMENT YEAR: 2005-06 M/S VERMA TRANSPORT COMPANY [SAIL], VS. THE DCIT, 334, JAWAHAR NAGAR, CENTRAL CIRCLE-II, JALANDHAR CHANDIGARH PAN NO. AABFV1941J (APPELLANT) (RESPONDENT) APPELLANT BY : SH. VINEET KRISHAN RESPONDENT BY : SH. MANJIT SINGH DATE OF HEARING : 14.12.2017 DATE OF PRONOUNCEMENT : 14.12.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 31.07.2017 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS CIT(A)]-2, GURGAON. 2. THE ASSESSEE IS AGGRIEVED BY THE ACTION OF THE L OWER AUTHORITIES IN TREATING THE INCOME OF RS. 4,53,293/- AS INCOME FR OM OTHER SOURCES AS AGAINST LONG TERM CAPITAL GAINS CLAIMED BY THE AS SESSEE. 3. APART FROM CHALLENGING THE AFORESAID CHANGE OF H EAD OF INCOME, THE LD. AR OF THE ASSESSEE HAS ALSO RAISED A LEGAL GRO UND STATING THAT THE AFORESAID ADDITION WAS MADE BY THE ASSESSING OFFICE R IN THE ASSESSMENT 2 PROCEEDINGS CARRIED OUT U/S 153A OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') PURSUANT TO THE SEARCH ACTION CARRIED OUT U/S 132 OF THE ACT ON THE ASSESSEE ON 30.6.2010. THE LD. AR HAS INVITED OUR A TTENTION TO THE ASSESSMENT ORDER AND HAS DEMONSTRATED THAT IT IS NO WHERE MENTIONED IN THE ASSESSMENT ORDER THAT ANY INCRIMINATING MATERIAL WA S FOUND DURING SEARCH ACTION. THE ASSESSEE HAD RETURNED THE SAME INCOME I N RESPONSE TO NOTICE U/S 153A OF THE ACT AT RS. 2,03,358/-, WHICH WAS ORIGIN ALLY RETURNED IN THE RETURN OF INCOME FILED U/S 139 OF THE ACT ON 31.10.2014. THE LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT IN THE LIGHT OF THE D ECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CONTINENT AL WAREHOUSING CORPORATION ITA NO. 523 OF 2013 REPORTED IN (2015) 279 CTR 0389 (BOMBAY) AND OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA 234 TAXMAN 300 (DELHI), WHEREIN IT HAS BEEN HELD THAT IF NO INCRIMINATING MATERIAL IS FOUND DURING THE SEARCH A CTION, THE ADDITION IN THE CASE OF ALREADY CONCLUDED ASSESSMENT CANNOT BE MAD E, NO ADDITIONS WERE WARRANTED IN THE CASE OF THE ASSESSEE. 4. WE FIND THAT THE CASE OF THE ASSESSEE IS SQUARE LY COVERED BY THE AFORESAID DECISIONS. THE AFORESAID DECISIONS HAVE B EEN FURTHER AFFIRMED BY THE DECISION OF THE DELHI HIGH COURT IN THE CASE OF PRINCIPAL CIT VS. MEETA GUTGUTIA PROP M/S FERNS N PETALS, ITA 306/2017 A ND OTHERS DECIDED VIDE ORDER DATED 25.5.2017. MOREOVER, THE ASSESSING OFFI CER IN THIS CASE HAS NOT FOUND ANY MATERIAL FOR FURTHER ADDITION RATHER HE H AS JUST CHANGED THE HEAD OF THE INCOME ALREADY RETURNED BY THE ASSESSEE WHIC H, IN OUR VIEW, WAS NOT WARRANTED IN VIEW OF THE SETTLED LEGAL POSITION OF LAW AS DISCUSSED ABOVE. 3 5. IN VIEW OF THE ABOVE, THE APPEAL OF THE ASSESSE E IS HEREBY ALLOWED AND THE IMPUGNED ORDER OF CIT(A) IS HEREBY SET ASIDE. T HE ADDITIONS MADE ON ACCOUNT OF CHANGE OF HEAD OF INCOME IS ORDERED TO B E DELETED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14 TH DEC., 2017 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR