M/s. Rangoli Buildtech Pvt. Ltd., New Delhi V. Sh. DCIT, New Delhi

ITA 2958/DEL/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2828 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-05-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 13-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHYCIT
• Assessee Lawyers: DR RAKESH GUPTA
• Keywords: Search and seizure
• Section: 69; 132; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F , NEW DELHI BEFORE SHRI G.D.AGRAWAL , PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 2 9 5 8 /DEL/201 2 A.Y. 20 05 - 06 M/S RANGOLI BUILDTECH P VT. LTD. 1105, AKASHDEEP BUILDING BARAKHAMBA LANE NEW DELHI PAN: AACCR 8695 P VS. DCIT, CIRCLE 18 ARA CENTRE, JHANDEWALAN NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY DR. RAKESH GUPTA, ADV . RESPONDENT BY S MT. PARAMITA TRIPATHY,CIT, D.R DATE OF HEARING 1 9 TH DEC EMBER, 2017 DATE OF PRONOUNCEMENT 21 ST DECEMBER , 2017 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER T HE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 09/04/12 PASSED BY LD.CIT(A) - 3, NEW DELHI FOR A SSESSMENT Y EAR (A.Y.) 2005 - 06 ON THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD.CIT(A) HAS PARTLY DISALLOWED THE APPEAL U/S 250 WITHOUT APPRE CIATING THE FACTS AND CIRCUMSTANCES OF THE CASE. ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 2 OF 7 2. THAT THE LD.CIT(A) HAS PARTLY DISALLOWED THE APPEAL WHICH IS UNLAWFUL AND UNREASONABLE. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ACTION OF LD.CIT(A) - III, NEW DELHI IN PARTLY UPHOL DING ADDITION OF RS.46,06,600/ - OUT OF TOTAL ADDITION OF RS.48,28,400/ - MADE BY LD.AO OUT OF ADDITION U/S 69 ON ACCOUNT OF CASH PAYMENT MADE TO 30 FARMERS AGAINST PURCHASE OF LAND. 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ACTION OF LD.CIT(A) - III, NEW DELHI IN UPHOLDING ADDITION OF RS.3,18,600/ - MADE BY LD.AO U/S 69 ON ACCOUNT OF CASH PAYMENT MADE TO MR.HARDAYAL AGAINST PURCHASE OF LAND. 5. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ACTION OF LD.CIT(A) - III, NEW DE LHI IN PARTLY UPHOLDING ADDITION OF RS.2,06,000/ - OUT OF TOTAL ADDITION OF RS.3,12,800/ - MADE BY LD.AO OUT OF ADDITION U/S 69 ON ACCOUNT OF CASH PAYMENT MADE TO MR.RAMPHAL AGAINST PURCHASE OF LAND. 6. THE ASSESSEE RESERVES THE RIGHT TO ADD, ALTER, AMEND, SUBSTITUTE ANY GROUND OF APPEAL. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: A SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF THE INCOME TAX A CT , 1961 (THE ACT) WAS CARRIED OUT ON 05/01/09 IN THE CASE OF M/S TANEJA - PURI GROUP OF CASES IN VARIOUS PREMIS ES. DURING THE COURSE OF SEARCH, SOME DOCUMENTS BELONGING TO ASSESSEE BEFORE WERE FOUND FROM THE PREMISES COVERED UNDER SECTION 132 (1) OF THE A CT. 2 .1 . SUBSEQUENTLY THE CASE WAS CENTRALISED AND NOTICE UNDER SECTION 153C WAS ISSUED TO THE ASSESSEE ON 04/10/ 20 10. 2 .2. AT THE OUTSET LD. AR FILED AN APPLICATION DATED 23/11/15 FOR ADMISSION OF FOLLOWING ADDITIONAL GROUND: 1 ) THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ASSUMPTION OF JURISDICTION BY LD. AO UNDER SECTION 153C ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 3 OF 7 IS BAD IN LAW MORE SO WHEN AS THE SATISFACTION HAS NOT BEEN RECORDED. 2 ) THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION EVEN THOUGH SUCH ADDITION WAS NOT BASED ON SEIZED MATERIAL IN T HE PROCEEDINGS UNDER SECTION 132 OF THE A CT. 2.3 . THIS T RIBUNAL V IDE ORDER SHEET ENTRY DATED 12/07/16 DECIDED THE APPLICATION DATED 23/11/15 AS UNDER: C ONSIDERING ABOVE SUBMISSIONS, WE FIND THAT THE ISSUES RAISED IN THE ABOVE STATED ADDITIONAL GROUNDS ARE LEGAL IN NATURE, WHICH GO TO THE ROOT OF THE MATTER (QUESTIONING THE VERY ASSUMPTION OF JURISDICTION UNDER SECTION 153C OF THE ACT BY THE ASSESSING OFFICER, NON - RECORDING OF SATISFACTION AND MAKING ADDITION IN ABSENCE OF SEIZED MATERIAL) AND ADJUDICATION OF WHICH DOES NOT REQUIRE CONSIDERATION OF ANY FRESH MATERIAL OUTSIDE THE RECORD. WE THUS ALLOW THE APPLICATION. THE LD. DR IS DIRECTED TO BE READY WITH THE RECORD CONTAINING THE SATISFACTION NOTE, IF ANY, RECORDED BY THE ASSESSING OFFICER FOR INITIATION O F PROCEEDINGS UNDER SECTION 15 3C OF THE ACT AGAINST THE ASSESSEE, ON THE NEXT DATE OF HEARING. 2.4. LD. C OUNSEL SUBMITTED BEFORE US THAT THE LEGAL ISSUE RAISED BY ASSESSEE HAS ALREADY BEEN ADMITTED V IDE ORDER SHEET ENTRY DATED 12/07/16. HE HAS PLACED ON RECORD RTI APPLICATION DATED 07/06/2017, FILED BY ASSESSEE SEEKING A COPY OF THE SATISFACTION NOTE PREPARED BY AO OF SEARCHED PARTY OR ANY OTHER DOCUMENT ON THE BASIS OF WHICH PROCEEDINGS UNDER SECTION 153C OF THE A CT IS ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 4 OF 7 INITIATED ON ASSESSEE. THE REPLY WAS ISSUED VIDE ORDER DATED 06/07/17 WHICH IS REPRODUCED HEREUNDER: ORDER U/S 7 OF THE RIGHT TO INFORMATION ACT, 2005 THE INFORMATION SOUGHT BY THE APPLICANT AND THE REPLY THEREON IS AS UNDER. SL. NO. INFORMATION TO BE SOUGHT BY APPLICANT REPLY 1. SEARCH & SEIZURE OPERATION U/S 132 OF IT ACT WAS CARRIED OUT ON 1.1.2009 IN M/S TANEJA PURI GROUP. DURING THE COURSE OF SEARCH SOME DOCUMENTS BELONGING TO ASSESSEE WERE FOUND FROM THE PREMISES. SINCE THE APPLICANT HAS PREFERRED AN APPEAL BEFORE HON BL E ITAT , THE APPLICANT HAS REQUIRED COPY OF SATISFACTION NOTE PREPARED BY THE AO OF SEARCHED PARTY (TANEJA PURI GROUP) OR ANY OTHER DOCUMENT ON THE BASIS OF WHICH THE PROCEEDING U/S 153C OF THE IT ACT, 1961 IS INITIATED ON THE ASSESSEE. HOWEVER, THE REQUISI TE INFORMATION IS NOT READILY AVAILABLE IN THIS OFFICE. 2.5. IT IS OBSERVED THAT THE INFORMATION COULD NOT BE GIVEN AS THE REQUISITE DETAILS WERE NOT READILY AVAILABLE WITH THE OFFICE. ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 5 OF 7 3. WE THEREFORE ARE INCLINED TO ALLOW THE APPEAL OF ASSESSEE ON THE LEGAL ISSUE RAISED BY ASSESSEE. AS THE LEGAL ISSUE RAISED BY ASSESSEE IS ALLOWED WE DO NOT INTEND TO GO INTO THE MERITS OF THE CASE. 3.1 . HOWEVER , IN ORDER TO SAFEGUARD THE INTEREST OF REVENUE, WE GRANT LIBERTY TO DEPARTMENT TO PREFER M ISCELLANEOUS A PPLIC ATION AGAINST THIS ORDER IN THE EVENT SATISFACTION NOTE PREPARED BY A SSESSING O FFICER OF SEARCHED PARTY IS OBTAINED. 3.2 . ACCORDINGLY THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. 4. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST DECEMBER, 2017 . SD/ - SD/ - ( G.D.AGRAWAL ) (BEENA A PILLAI) PRESIDENT JUDICIAL MEMBER DATED : 2 1 S T DECEMBER , 2017. *MV ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 6 OF 7 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI ITA 2958/DEL/2012 ASSESSMENT YEAR 2005 - 06 RANGOLI BUILDTECH PVT.LTD., NEW DELHI PAGE 7 OF 7 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON DRAGON 19/12/17 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 20/12/17 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK 22/12/2017 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER