ASSTT. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE -2(2) , NAGPUR V. M/s RASOYA PROTEINS LTD , NAGPUR

ITA 37/NAG/2018

AI Insights

The case involves the Income Tax Department (Revenue) appealing against the CIT(A)'s decision regarding the assessments of M/s. Rasoya Proteins Ltd. for the assessment years 2007-2008 and 2008-2009. The core issue was whether the assessments could be sustained without incriminating material seized during a search operation. The Tribunal found that the assessments were based solely on the regular book results of the assessee, which did not constitute incriminating material as required under section 153A of the Income Tax Act, 1961 for making additions in unabated assessments. The Tribunal's decision was influenced by the Supreme Court's ruling in a similar case, emphasizing that additions in such assessments must be substantiated by seized material.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136574 (ITAT-NAGPUR)
• Duration Of Justice: 5 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-08-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 28-02-2018
• Other Referred Cases: PCIT vs. Abhisar Buildwell P. Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE DESPITE SERVICE OF NOTICE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH : NAGPUR [THROUGH VIRTUAL HEARING AT INCOME TAX APPELLATE TRIBUNAL : PUNE BENCHES : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK RIPOTE, ACCOUNTANT MEMBER ITA.Nos.37 & 38/Nag./2018 Assessment Years 2007-2008 & 2008-2009 The ACIT, Central Circle-2(2), Aayakar Bhawan, 2 nd Floor, Room No.207, Telangkhedi Road, Nagpur – 440 001 Maharashtra State vs. M/s. Rasoya Proteins Ltd., Plot No.20-21, Rasoya House, Wardha Road, Near Sneh Nagar, Nagpur-440015 PAN AABCM1757C (Appellant) (Respondent) For Revenue : Shri Kailash Kanojiya, Sr. DR For Assessee : -None- Date of Hearing : 28.08.2023 Date of Pronouncement : 28.09.2023 ORDER PER SATBEER SINGH GODARA, J.M.: These Revenue’s twin appeals, for assessment years 2007-2008 & 2008-2009, arise against the CIT(A)-3, Nagpur’s as many separate orders nos.CIT(A)-3/13 & 14/2016-17, both dated 29.12.2017, involving proceedings u/s. 143(3) r.w.s. 153A of the Income Tax Act, 1961 (in short “the Act”); respectively. None appeared for assessee despite service of notice. It is accordingly proceeded ex-parte. 2 I.T.A.Nos.37 & 38/NAG./2018 2. We find with the able assistance coming from the Revenue side that it’s identical former substantive grievance in both these cases is legal in nature wherein it seeks to reverse the CIT(A)'s findings holding these twin assessments as not sustainable in law for want of the corresponding incriminating material found and seized during the course of the search action herein dated 08.08.2012. 3. We wish to make it clear that both these are “unabated” assessment years 2007-08 and 2008-09 as on the date of the search wherein the assessee had duly filed it’s sec.139(1) returns followed by the processing thereof u/sec.143(1) of the Act. This is indeed coupled with the fact that all what the learned Assessing Officer had done in both these cases was to enhance the assessee’s income treating it’s book results as an instance of decline in yield of refined oil. Meaning thereby that he had gone by the assessee’s regular book results only than making any addition based on the relevant incriminating material seized during the course of search. This clinching factual position has gone un-rebutted from the Revenue side during the course of hearing before us. 4. We find in this factual backdrop that hon’ble apex court’s recent landmark decision in PCIT vs., Abhisar Buildwell P. Ltd., [2023] 149 taxmann.com 399 (SC) has already settled the very issue in assessee’s favour and against 3 I.T.A.Nos.37 & 38/NAG./2018 the department that any addition made in the course of an ‘unabated assessment’ framed u/sec.153A has to be based on the seized material only. We reject the Revenue’s instant twin appeals on this legal issue itself therefore. Ordered accordingly. 5. All other Revenue’s pleadings on merits stand rendered academic. 6. These Revenue’s twin appeals ITA.Nos.37 & 38/Nag./ 2018 are dismissed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open Court on 28.09.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 28 th September, 2023 VBP/- Copy to 1. The applicant 2. The respondent 3. The CIT(A)-3, Nagpur. 4. The CIT (Central), Nagpur 5. D.R. ITAT, Nagpur Bench, Nagpur. 6. Guard File. //By Order// //True Copy // Assistant Registrar, ITAT, Pune Benches, Pune. 4 I.T.A.Nos.37 & 38/NAG./2018 S.No. Details Date 1 Draft dictated on 27.09.2023 Sr.PS 2 Draft placed before author 27.09.2023 Sr.PS 3 Draft proposed & placed before the Author .09.2023 J.M. 4 Draft discussed/approved by Second Member .09.2023 A.M. 5 Approved Draft comes to the Sr. PS/PS .09.2023 Sr.PS 6 Kept for pronouncement on .09.2023 Sr.PS 7 Date of uploading of Order .09.2023 Sr.PS 8 File sent to Bench Clerk .09.2023 Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order