Rajveer Singh , Meerut V. DCIT Central Circle Gzbd , Meerut

ITA 20/DEL/2022

AI Insights

The case involves an appeal by Rajveer Singh against the order of the Commissioner of Income Tax (Appeals), Kanpur-4, which arose from an assessment order passed by the Assessing Officer under Sections 143(3) read with Section 153A of the Income Tax Act, 1961, for the assessment year 2012-13. The primary contention was the addition of Rs. 20,98,370 to the return of income by applying a net profit rate of 8% on the total turnover, which the assessee challenged on grounds including lack of jurisdiction to make additions under Section 153A in the absence of any incriminating material. The Income Tax Appellate Tribunal, after considering the submissions and relevant legal precedents, found merit in the assessee's legal plea and allowed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121631 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-05-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 04-01-2022
• Other Referred Cases: Pr. CIT vs. Abhisar Buildwell P. Ltd., CIT vs. Kabul Chawla
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 132; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.20/DEL/2022 Assessment Year 2012-13 Rajveer singh House No.4 Krishna Garden Ganga Nagar Meerut. Vs. DCIT Central Circle Ghaziabad TAN/PAN: AIAPS2907A (Appellant) (Respondent) Appellant by: Shri Ajay Wadhwa, Adv. Respondent by: Shri T. Kipgen, CIT-DR Date of hearing: 24 05 2023 Date of pronouncement: 13 06 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T h e c a p t i on e d a p p e a l ha s be e n f i l ed b y th e a s s e ss e e a g a i n s t t h e or de r o f t h e l d. C om m i s si on e r o f In c o m e T ax ( A pp e a ls) , Ka n p u r - 4 ( ‘ C I T ( A ) ’ i n s h or t ) d at e d 1 4. 1 2. 2 0 2 1 a r i si n g f r o m th e a s se s s m e n t o r d e r da t e d 30 . 12 . 2 0 19 pa s s e d b y t h e A s s e ss i n g O f f i c e r ( AO ) u n d e r S e c ti o n 14 3( 3) r . w . S ec t i o n 15 3 A o f t h e In c om e T a x A c t , 1 961 ( th e A c t ) c on c e r ni n g A Y 2 01 2- 13 . 2. T h e a ss e s se e h a s f i l e d g r o un d s o f a pp ea l s e e ki n g t o c h a l l en ge t he ad di t i on o f Rs . 2 0, 9 8, 3 70 / - t o t he r e t ur n o f i n co m e b y a p pl yin g n e t pr o f i t r a t e o f 8 % o n t h e t o t a l t u r n o ve r . T he a s se s se e t he r e a f t e r fi l e d a dd it i o n a l g r o u n d s w h e r e b y t h e a d di t i o n s s o m a d e has be e n c h al l e n g e d on t h e p r e m i s e t h at j ur i sdi c t io n o f t h e A s s e s si n g Of f i c e r i n m a ki n g a dd it i o n s u n d er S e c t i o n 1 5 3 A o f t h e A c t i s n ot a v a il a b l e i n t h e a b s e n ce I.T.A. No.20/Del/2022 2 a n y in c r i m i n a t i n g m a t e r i a l . 3. W e ha v e h ea r d t h e r i v a l su bm i s si on s a nd p e r u s e d t he m a t e r i a l a v a i l ab l e o n r e c or d. 4. A s e a r ch w a s c on du c t e d i n t he pr e mi se s o f t h e a ss e s s e e o n 16 . 06 . 20 17 . I n p ur s u an c e o f t h e pr o c e e di n gs u n d e r Se c ti o n 13 2 o f t h e A c t , no t i c e w a s i s su ed u nd er S e c t i o n 15 3 A o f t h e A ct a n d t h e a s s e s sm e nt w a s c o mp l e te d on t h e t ot a l i nc o m e o f R s.1, 1 4, 1 4, 1 3 0 / - un d e r S e c t i o n 14 3( 3 ) r . w . S e c t i o n 1 53 A o f t h e A c t . W h i l e ma k i n g t h e a s s e s sm e nt , th e A s s e s s i n g O f fi c e r m a de t h e a dd i t i o n t o R s . 2 0, 9 8, 3 7 0 / - b y a pp l yi n g p r o f i t @ 8% o f t h e t o t a l b u si n e s s r e c ei p t w it h r e f e r e nc e t o p r o vi si on s o f S e c t i o n 4 4A D o f t h e A c t . Th e a s se ssm e n t or d e r ha s m ai n t a i n ed s t o i c si l e n c e a nd d o e s n ot m a k e r e fe r e n ce t o a n y i nc r i m i na t i n g m a t e r i a l f o u n d i n t he c o ur s e o f se a r ch . T he a d d it i o n s w e r e m a de o n e st i m a t e d ba s i s b a se d on t h e a p pr e c i a ti o n o f t h e e x i s ti n g m at e r i a l a n d do c um e nt a r y e vi d e n ce . 5. T h e C IT ( A ) i n t h e fi r s t a p pe a l h a s c on fi r m e d th e a f or e s a i d a c ti o n of t h e A ss e s s in g O f f i c er t o w a r d s su c h e s t im a t i on o f pr o f i t s i n S e c t i o n 15 3 A a s se s s m e n t . 6. T h e l d. co un se l b e f or e u s c o n t en d s a t t he o u t s et t h a t de h o r s t he i nc r i m i na t i n g m a t e r ia l , n o a d di t io n/ d i s a ll o w a n c e s ca n b e ma d e in t h e a s s e s sm e nt w h i ch a l r e a d y st oo d c o n c l u d e d a t t h e ti me o f se a r ch . T he l e g a l i s su e o f l a c k o f j ur i sd i c t i o n t o m ak e a d d it i on s/ di s a l l ow a n c e s i n 15 3 A p r o c e e d i n g s i n t h e a b s e n c e o f a n y i n c r i m i na t i ng ma t e r i a l i n r e s p e ct o f c o nc l u d ed a s s e s s m e n t i s no w s et t l e d i n fa v o ur o f t he a s s e s se e b y r e c e nt j ud gm e nt o f t h e H o n ’ bl e S up r e m e C o u r t i n t h e c a s e of P r. CI T v s. Ab h i s a r B ui l d w e l l P . L t d . ( 20 23 ) 1 4 9 t a xm a n n. c o m 3 9 9 (S C ). A s po i nt e d o ut , t h e j ud gm e nt o n t h e si m i l ar l i n e s w e r e e a r l i e r pa s se d b y t h e H o n’ bl e D e l hi H i g h Co u r t i n t he c a se o f CI T v s. K a b u l Ch aw l a ( 20 15 ) 6 1 t ax m a nn . c om 41 2 ( D e l ) a nd pl e t ho r a o f o th e r j ud gm e nt s. I.T.A. No.20/Del/2022 3 7. I n t h e l i g ht o f c o nt e nt i o n s m a d e , w e f i nd pa l p abl e me r i t i n t he l e g a l p l e a r ai s e d b y w a y o f a dd i t io na l gr o u n d s. H e nc e , w e d o n ot c on s i d e r i t n e c e s s a r y t o go i nt o t h e m e r it s o f t h e e st i m a t e d a d d i t i on s i n t he i n s t a nt c a s e . C o ns e q ue n tl y, th e a d d i t i on s / di s a ll ow a n c e s m a d e u n d e r S e c ti o n 1 53 A o n a c c ou n t o f e s ti m a t e d p r o f i t s u nd e r S e c t i on 4 4 A D st a n d s d e l e t e d. T he or de r o f t h e C IT ( A ) i s s et a s i de an d t h e A s s e s s i n g O f f i c er i s di r e c t e d t o ca n c el t h e a d d i t i o n s. 8. I n t h e r e su l t , t he a p p e al o f t h e a s s e s s ee i s a l lo w e d . Order pronounced in the open Court on 13/06/2023 Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2023 prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar