Amrit Banaspati Company Ltd., Noida V. DCIT, Central Circle , Ghaziabad

ITA 3431/DEL/2018

AI Insights

The case involves appeals by both the assessee, Amrit Banaspati Company Ltd., and the revenue against the order of the CIT(A), Meerut, dated 06.04.2018 for the assessment year 2009-10. The primary legal contention was regarding the validity of the assessment order framed under section 143(3) read with section 153A of the Income Tax Act, 1961, following a search and seizure operation conducted on the assessee's premises. The Tribunal examined whether the additions and disallowances made in the assessment were supported by any incriminating material seized during the operation. Citing precedents from the Supreme Court and Delhi High Court, the Tribunal concluded that the assessment was not based on any such material, leading to the quashing of the assessment order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115916 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-09-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2018
• Other Referred Cases: Singhad Technical Education Society vs. Income Tax Officer, Kabul Chawla vs. Income Tax Officer, Abhisar Buildwell vs. Income Tax Officer
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUGAM THOMAS JOSH
• Assessee Lawyers: ROHIT JAIN
• Keywords: Gross profit estimation; Depreciation
• Section: 132; 139; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA JUDICIAL MEMBER ITA No.3431/Del/2018 Assessment Year: 2009-10 Amrit Banaspati Company Ltd. A-95, Sector-65, Noida PAN No.AABCA6485H Vs DCIT Central Circle, Ghaziabad (APPELLANT) (RESPONDENT) ITA No.4922/Del/2018 Assessment Year: 2009-10 DCIT Central Circle, Ghaziabad Vs Amrit Banaspati Company Ltd. A-95, Sector-65, Noida PAN No.AABCA6485H (APPELLANT) (RESPONDENT) Appellant by Sh. Rohit Jain, Advocate Ms. Soumya Jain, CA Respondent by Ms. Sugam Thomas Josh, CIT DR Date of hearing: 05/09/2023 Date of Pronouncement: 11/09/2023 ORDER PER N. K. BILLAIYA, AM: ITA No.3431/Del/2018 and 4922/Del/2018 are appeals by the assessee and the revenue preferred against the order of the CIT(A), Meerut dated 06.04.2018 pertaining to A.Y.2009-10. 2 2. Both these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. The first ground of the assessee challenges the validity of the assessment order framed u/s. 143(3) r.w.s. 153A of the Act. Since this challenge goes to the root of the matter we decided to adjudicate it first. 4. A search and seizure operation u/s. 132 of the Act was conducted on 04.05.2011 on the premises of the assessee comprising Amrit Group of cases. 5. The assessee filed its original return of income u/s. 139 (1) of the Act on 26.09.2009 which means that the notice u/s. 143 (2) of the Act should have been served on or before 30.09.2010. Since no notice was issued / served u/s. 143 (2) of the Act it can be safely concluded that the return was accepted as such making thereby the assessment as unabated assessment. 6. A perusal of the assessment order shows that additions/ disallowances have been made on account of :- A. Depreciation on edible oil brands B. Royalty paid on brand “Gagan” C. Addition on account under valuation of closing stock D. Addition on account of low gross profit E. Addition on account of capital subsidy 3 7. All the aforementioned disallowances/ additions are devoid of any reference to any incriminating material found at the time of search. It is a settled proposition of law that in case of unabated assessment u/s.153A it can be framed only in respect of items found from the incriminating material found and seized at the time of search. This proposition is well settled by the decision of Hon’ble Supreme Court in the case of Singhad Technical Education Society 397 ITR 344, Hon’ble High Court of Delhi in the case of Kabul Chawla 380 ITR 573, Hon’ble Supreme Court in the case of Abhisar Buildwell 454 ITR 212. 8. In the light of above judicial decisions mentioned here in above the assessment order dated 30.03.2014 framed u/s. 153A r.w.s. 143 (3) of the Act is bad in law and deserve to be quashed. 9. Since we have quashed the assessment order we do not it necessary to dwell into the merits of the case. 10. In the result, the appeal of the assessee is allowed and that of the revenue is dismissed. Order pronounced in the open court on 11.09.2023. Sd/- Sd/- [ANUBHAV SHARMA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:11.09.2023 *Neha* 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CITi 4. CIT(A) 5. DR Asst. Registrar ITAT, New Delhi