Kaane Packaging (P) Ltd., New Delhi V. ITO, Ward- 14(1), Delhi

ITA 4637/DEL/2019

AI Insights

The case involves Kaane Packaging (P) Ltd., the appellant, contesting an assessment order for the year 2010-11 issued by the Income-tax Officer, Ward 14(1), Delhi. The primary contention raised by the appellant was the validity of the assessment order, which was based on incriminating material found during a search and seizure operation in a third party's case. The appellant argued that the proper procedure under section 153C of the Income-tax Act, 1961, should have been followed instead of invoking section 147. The Commissioner of Income-tax (Appeals) acknowledged the additional grounds but did not adequately address them, leading to the appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121399 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 10-05-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 21-05-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DLEHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 4637/Del/2019 Assessment Year: 2010-11 Kaane Packaging (P) Ltd., 38/18, East Patel Nagar, New Delhi. PAN: AABCG0297P Versus Income-tax Officer, Ward 14(1), Delhi. (Appellant) (Respondent) Assessee by : Shri P.C. Yadav, Advocate Revenue by : Ms. Princy Singhla, Sr. DR Date of hearing : 11.05.2023 Date of pronouncement : 17.05.2023 ORDER PER SAKTIJIT DEY, J.M.: This is an appeal by the assessee against order dated 28.03.2019 of learned Commissioner of Income-tax (Appeals)-5, New Delhi pertaining to assessment year 2010-11. 2. At the outset, learned counsel appearing for the assessee submitted, before the first appellate authority the assessee had raised certain legal issues, through additional grounds, challenging validity of assessment order. He submitted, though, the first appellate authority ITA No. 4637/Del/2019 2 called upon the Assessing Officer to offer his comments on the additional grounds raised by the assessee, however, ultimately, he has failed to adjudicate the additional grounds. Proceeding further, he submitted, since, in assessee’s case the assessment is based on incriminating material found in course of search and seizure operation conducted in case of a third party, proper course for the Assessing Officer was to initiate proceedings u/s. 153C of the Income-tax Act, 1961. He submitted, instead of initiating proceedings u/s. 153C of the Act, the Assessing Officer has invoked the provisions of section 147 of the Act, which is invalid. Thus, he submitted, the order of first appellate authority may be set aside and issues may be restored back to him for fresh adjudication after deciding the additional grounds raised by the assessee. Learned departmental representative did not express any objection against restoration of issues to ld. Commissioner (Appeals). 3. Having considered rival submissions, we find, in paragraph 4.2 of the impugned order, learned Commissioner (Appeals) has accepted that the assessee had raised certain additional grounds challenging validity of the assessment order. It is also evident, the additional grounds were forwarded to Assessing Officer seeking his comments. However, while deciding the appeal, learned Commissioner(Appeals) has decided the ITA No. 4637/Del/2019 3 additional grounds in a perfunctory manner without properly addressing the issues raised therein. In view of the aforesaid, we are inclined to set aside the impugned order of ld. Commissioner (Appeals) and restore the issues back to him for fresh adjudication. Learned Commissioner (Appeals) is directed to decide all the issues including the issues raised in additional grounds with proper reasoning after providing due and reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes. 4. In the result, appeal is allowed for statistical purposes. Order pronounced in the open court on 17/05/2023. Sd/- Sd/- (M. BALAGANESH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 17.05.2023 *aks/-