Meena Rani, New Delhi V. ACIT, New Delhi

ITA 256/DEL/2013

• Counselvise Citation: 25620114 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 21-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 15-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GUNJAN PRASHAD
• Assessee Lawyers: SUMIT GOE L
• Keywords: Search and seizure; Document seized; Documents seized
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI H.S. SIDHU: JUDICIAL MEMBER ITA NO. 256/DEL/2013 A.Y. 2006-07 SMT. MEENA RANI, VS. ACIT CENTRALCIRCLE-19, A-7, IST FLOOR, SOUTH EXTN., JHANDEWALAN, NEW DEL HI. PART-II, NEW DELHI. PAN: AAWPR 6753 E ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI RAJ KUMAR CA & SHRI SUMIT GOEL CA RESPONDENT BY : SHRI GUNJAN PRASHAD CIT(DR) DATE OF HEARING : 21-04-2015 DATE OF ORDER : 29-04-2015. O R D E R PER S.V. MEHROTRA, A.M:- THIS APPEAL, BY THE ASSESSEE, IS DIRECTED AGAINST T HE ORDER DATED 29-11-2012 PASSED BY THE LD. CIT(A)-XXXIII, NEW DELHI IN APPEA L NO. 536/10-11/183 RELATING TO A.Y. 2006-07. 2. A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT I N RH AGRO GROUP OF CASES. NOTICE U/S 153A READ WITH SECTION 153C OF TH E ACT WAS ISSUED ON 31- 12-2009 REQUIRING THE ASSESSEE TO FILE RETURN OF IN COME FOR ASSESSMENT YEAR UNDER CONSIDERATION. THE ASSESSEE FILED PHOTO COPY OF THE RETURN DECLARING TOTAL INCOME AT RS. 2,17,762/-. THE AO COMPLETED TH E ASSESSMENT AT A TOTAL 2 ITA 256/DEL/2013 MEENA RANI VS. ACIT INCOME OF RS. 11,69,190/- AFTER MAKING ADDITION OF RS. 9,51,428/- ON ACCOUNT OF LONG TERM CAPITAL GAIN. 2.1. LD. CIT(A) CONFIRMED THE AOS ACTION DISMISSIN G THE ASSESSEES APPEAL. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE ASSESSEE, INTER ALIA, HAS TAKEN FOLLOWING EF FECTIVE GROUNDS OF APPEAL: 2. THAT ASSUMPTION OF JURISDICTION U/S 153 CANNOT BE HAD IN THE ABSENCE OF FINDING ANY VALUABLE OR RECORDS BELO NGING TO THE ASSESSEE DURING SEARCH ON A 3 RD PERSON AS ENVISAGED U/S 153C(1), HENCE, THE COMPLETE PROCEEDINGS ARE ILLEGA L BEING WITHOUT JURISDICTION. 3. THAT IN THE ABSENCE OF RECORDING ANY SATISFACTIO N FOR FINDING ANY VALUABLE OR RECORDS BELONGING TO THE AS SESSEE DURING SEARCH ON A 3 RD PERSON BY THE AO OF SEARCHED PERSON OR OTHERWISE, AS ENVISAGED U/S 153C(1), THE COMPLETE P ROCEEDINGS ARE ILLEGAL AND WITHOUT JURISDICTION., 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO S ATISFACTION WAS RECORDED BY THE AO IN THE CASE OF SEARCHED PERSONS BUT WAS RECORDED IN THE CASE OF ASSESSEE AND, THEREFORE, IN VIEW OF THE DEC ISION OF HONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD. VS. ACIT 367 ITR 112, THE ENTIRE PROCEEDINGS WERE ILLEGAL. LD. COUNSEL ALSO R ELIED UPON FOLLOWING DECISIONS: - PEPSICO INDIA HOLDINGS (P) LTD. VS. ACIT (DELHI HIG H COURT ORDER DT. 7-8-2014); - VIJAYBHAI N. CHANDRANI VS. ACIT 333 ITR 436 (GUJ.); - CIT VS. MEGHMANI ORGANICS LTD. 221 TAXMAN 25 (GUJ.) (MAG.) - CWT ?VS. BISHWANATH CHATTERJEE 103 ITR 536 (SC). - V.K. FISCAL SERVICES (P) LTD. VS. DCIT (DELHI ITAT ORDER DATED 27- 11-2013); - SSP AVIATION LTD. VS. ADIT 70 DTR (DEL.) 275; 3 ITA 256/DEL/2013 MEENA RANI VS. ACIT - DCIT VS. DCM SHRIRAM INDUSTRIES LTD. (ITA NOS. 1648 TO 1653/D/2013). - DCIT VS. ASP SOFTWARE SOLUTIONS (P) LTD. 84 DTR (HY D.) (TRIB.) 35 TTJ 152 (HYD.)(TRIB.) 739. - P.SRINIVAS NAIK VS. ACIT 117 ITD 201 (BANG.). 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORD OF THE CASE. AT PAGE 41 OF THE P B, THE SATISFACTION NOTE RECORDED BY DCIT, CENTRAL CIRCLE,19, NEW DELHI IS C ONTAINED, WHICH IS REPRODUCED HEREUNDER: SATISFACTION NOTE FOR INITIATING PROCEEDINGS U/S 1 53C OF INCOME TAX ACT, 1961IN THE CASE OF SMT. MEENA RANI, A-7, IST F LOOR, SOUTH EXTENSION-II, NEW DELHI. 31.12.2009 : SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF INCOME TAX ACT, 1961 IN DAAWAT GROUP (L.T. FOODS LI MITED) OF CASES INCLUDING M/S R.H. AGRO GROUP WAS CONDUCTED O N 10-02-2009 AT THE BUSINESS PREMISES AND AT THE RESIDENTIAL PRE MISES OF THE DIRECTORS. DURING THE COURSE OF SEARCH ACTION VARIO US DOCUMENTS WERE FOUND AND SEIZED. WHILE EXAMINING THE SEIZED DOCUMENTS OF THIS GROUP, I HAVE COME ACROSS WITH THE FOLLOWING D OCUMENTS: S.NO. PREMISES FROM WHERE SEIZED ANNEXURE NO. & PAGE NO. REMARKS 1. A- 7, IST FLOOR, SOUTH EXTENSION PART- II, NEW DELHI. ANNEXURE A-3, PAGE 46 FORM NO. 32 WHICH CONTAINS THE PARTICULARS OF APPOINTMENT OF MRS. MEENA RANI AS ADD DIRECTORS PURSUANT TO SECTION 303(2) OF THE COMPANIES ACT, 1956 IN M/S FLAIR FURNITURE PVT. LTD. 2. A-7, IST FLOOR, SOUTH EXTENSION PART-II, NEW DELHI. ANNEXURE A - 1 PAGE 94 THIS DOCUMENT CONTAINS THE COPY OF CAPITAL ACCOUNT OF SMT. MEENA RANI WITH M/S R.S. RICE & GEN MILLS, BHIKHIWIND (AMRITSAR) 4 ITA 256/DEL/2013 MEENA RANI VS. ACIT I HAVE GONE THROUGH THE ABOVE DOCUMENTS AND FROM TH E EXAMINATION OF THE SAME I AM SATISFIED THAT THESE DOCUMENTS BEL ONG TO MRS MEENA RANI AND THEREFORE, ACTION U/S 153C OF THE INCOME T AX ACT IS ATTRACTED IN THIS CASE. NOTICES U/S 153A READ WITH SECTION 153C OF INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEARS 2003- 04 TO 2008-09 ARE BEING ISSUED. 5.1. A PERUSAL OF THE SATISFACTION NOTE MAKES IT CL EAR THAT THIS HAS BEEN RECORDED IN THE RECORDS OF ASSESSEE AND NOT IN THE RECORDS OF THE SEARCHED PERSONS BECAUSE NOTICE U/S 153A READ WITH SECTION 1 53C WAS ISSUED BY THE AO AFTER EXAMINING THE DOCUMENTS MENTIONED IN THE S ATISFACTION NOTE. THEREFORE, THIS SATISFACTION NOTE DOES NOT MEET THE REQUIREMENTS OF LAW. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF H ONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD., GROUND NO. 3 IS ALLOWED AND THE ASSESSMENT ORDER IS CANCELLED. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 29-04-2015. SD/- SD/- (H.S. SIDHU) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29-04-2015. MP: C OPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR