ACIT, Central Circle- 4, New Delhi V. Anand Pershad Jaiswal, New Delhi

ITA 3160/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9630 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 03-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Assessee Lawyers: PRADEEP CHAND
• Keywords: Search and seizure; Deemed dividend
• Section: 153A; 2(22)(e)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI K.N. CHARY, JUDICIAL MEMBE R ITA NO. 3160/DEL/2018 [A.Y 2012-13] THE A.C.I.T VS. SHRI ANAND PERSAD JAISWAL CENTRAL CIRCLE - 4 54, RING ROAD, LAJPAT NAGAR -III NEW DELHI NEW DELHI PAN: ADRP 2549 M [APPELLANT] [RESPONDENT] ASSESSEE BY : SHRI PRADEEP CHAND, CA REVENUE BY : SHRI SATPAL GULATI, CIT-DR DATE OF HEARING : 27.07.2021 DATE OF PRONOUNCEMENT : 27.07.2021 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - 23, NEW DELHI DATED 28.02.2018 PERTAINING TO A.Y 2012-13 . 2 2. THE GRIEVANCES OF THE REVENUE READ AS UNDER: 1. THE ORDER OF THE LD. CIT(A) IS NOT CORRECT IN LAW AND FACTS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ID.CIT(A) ERRED IN DELETING THE ADDITION MADE UNDER SECTION 1 53A OF THE INCOME TAX ACT, 1961 BY HOLDING THAT THE ASSESSING OFFICER HAD NO POWER TO INTERFERE WITH A COMPLETED ASSESSMENT IN T HE ABSENCE OF INCRIMINATING SEIZED MATERIAL, WHEN THERE IS NO SUC H RESTRICTION PLACED ON THE POWER OF THE ASSESSING OFFICER UNDER SECTION 153A OF THE INCOME-TAX ACT, 1961. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ID.CIT(A) HAS ERRED IN LAW IN QUASHING THE ASSESSMENT ORDER F RAMED U/S 153A OF THE INCOME TAX ACT, 1961. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.1,5 0,00,000/- MADE BY AO ON ACCOUNT OF DEEMED DIVIDEND U/S 2(22)(E) OF THE INCOME TAX ACT, 1961. 5. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY/ALL TH E GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF TH E APPEAL. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT A SEARCH AND SEIZURE OPERATION WAS CONDUCTED ON JAISWAL GROUP OF CASES O N 06.05.2014 AND ACCORDINGLY, NOTICE U/S 153A OF THE INCOME-TAX ACT, 1961 [HEREINAFTER 3 REFERRED TO AS 'THE ACT'] WAS ISSUED AND SERVED UPO N THE ASSESSEE. PURSUANT TO THE NOTICE, RETURN OF INCOME DECLARING AN INCOME OF RS. 5,07,35,650/-WAS FILED. 7. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEED INGS, ON THE BASIS OF INFORMATION RECEIVED FROM THE INCOME TAX O FFICER, WARD -5(1), NEW DELHI, IT WAS BROUGHT TO THE NOTICE OF THE ASSE SSING OFFICER THAT IN THE COMPANY M/S BLOSSOM INVESTMENT PVT LTD THERE IS ONLY ONE SHARE HOLDER HAVING MORE THAN 10% OF SHARE HOLDING. IN F ACT, THE SHARE HOLDING WAS 95% AND SINCE THE ASSESSEE HAS TAKEN LO AN/ADVANCE OF RS. 1.50 CRORES, THE ASSESSING OFFICER TREATED THE SAME AS DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT AND MADE ADDITION ACCORDINGLY. 8. THE ASSESSEE AGITATED THE MATTER BEFORE THE LD. CIT(A) AND VEHEMENTLY CONTENDED THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH PROCEEDINGS QUA THE ADDITION. THEREFORE, THE RATIO LAID DOWN BY THE HON'BLE JURISDICTIONAL HIGH COURT OF DELHI IN THE CASE OF KABUL CHAWLA 61 TAXMANN.COM 412 AND MEETA GUTGUT IA 395 ITR 526 SQUARELY APPLY. 4 9. THE LD. CIT(A) WAS CONVINCED WITH THE SUBMISSION S OF THE ASSESSEE AND QUASHED THE ASSESSMENT ORDER. 10. BEFORE US, THE LD. DR FAIRLY CONCEDED THAT QUA THE ADDITION, NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH PROCEEDINGS. 11. PER CONTRA, THE LD. DR RELIED UPON THE FINDINGS OF THE LD. CIT(A). 12. WE HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER AND THE ORDER OF THE FIRST APPELLATE AUTHORITY. THE UNDISPUTED FACT IS THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE SEARCH PROCEEDINGS AND ADDITION HAS BEEN MADE ONLY ON THE BASIS OF INFORMA TION RECEIVED FROM THE INCOME TAX OFFICER, WARD -5(1), NEW DELHI. CON SIDERING THE TOTALITY OF THE FACTS, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A). 5 13. IN THE RESULT THE APPEAL OF THE REVENUE IN ITA NO. 3160/DEL/2018 IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT IN THE PR ESENCE OF BOTH THE RIVAL REPRESENTATIVE ON 27.07.2021. SD/- SD/- [ K.N. CHARY ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 TH JULY, 2021 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 6 DATE OF DICTATION ATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER