M/s. Kabir Commodities Zone Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 5631/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3907 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 08-08-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 20-10-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIJAY VERMA
• Assessee Lawyers: AKHILESH AG AR WAL DIRECTOR
• Section: 143(3); 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: BENCH D NEW DELHI BEFORE SRI G.D.AGRAWAL, HON BLE PRESIDENT AND SMT. BEENA A PILLAI, J UDICIAL MEMBER ITA NO. 5631 /DEL/201 4 A.Y. 20 06 - 07 KABIR COMMODITIES ZONE P.LTD. VS. DCIT, C.C. 12 12, RING ROAD, LAJPAT NAGAR IV NEW DELHI NEW DELHI 110 024 PAN: AAACF 8477 B (APPELLANT) (RESPONDENT) APPELLANT BY: SRI AKHILESH AG AR WAL, DIRECTOR . RESPONDENT BY: SH. VIJAY VERMA , CIT, D.R DATE OF HEARING : 1 7 .01.2018 DATE OF PRONOUNCEMENT : 19.01.2018 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER THE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 31/07/14 PASSED BY LD.CIT(A) - 31 FOR A SSESSMENT Y EAR 2006 - 07 ON THE FOLLOWING GROUNDS OF APPEAL: 1. BECAUSE THE LD.CIT(A) HAS WRONGLY, ILLEGALLY, AND ARBITRARILY DISMISS ALL THE GROUNDS TAKEN BY THE APPELLANT. 2. BECAUSE THE ASSESSMENT IN THE PRESENT APPEAL IS FRAMED U/S 153C OF THE ACT AND HENCE NO ADDITION/DISALLOWANCE OTHER THAN BASED ON ANY INCRIMINATING MATERIAL SEIZED DURING SEARCH CAN BE MADE. THE ITA NO.5631/DEL/2014 A.Y:2006 - 07 KABIR COMMODITIES ZONE P.LTD., VS. DCIT, CC 12, NEW DELHI 2 LD.CIT(A) HAS ERRED IN IGNORING THE LEGAL POSITION AND THE FACTS OF THE CASE WHILE CONFIRMING THE ADDITIONS MADE BY THE A.O. 3. BECAUSE THE LD.CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS IN CONFIRMING THE ADDITIONS MADE BY THE ASSESSING OFFICER. 2. BRIEF FACTS OF THE CASE ARE AS UNDER: F OR THE YEAR UNDER CONSIDERATION ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) ON 31/12/08 WHEREIN AN ADDITION OF RS. 5, 92, 285/ - WAS MADE IN THE HANDS OF ASSESSEE AGAINST THE L OSS OF RS.16,65, 225/ - DECLARED DURING THE YEAR UNDER CONSIDERATION. SUBSEQUENTLY A SEA RCH AND SEIZURE OPERATION TOOK PLACE IN RAJ D AR BAR GROUP OF CASES ON 31/07/08. DURING THE SEARCH OPERATION CERTAIN DOCUMENTS WERE SEIZED BELONGING TO ASSESSEE AND THE CASE OF THE ASSESSEE COMPANY WAS CENTRALISED. NOTICE UNDER SECTION 153C WAS ISSUED TO ASS ESSEE REQUIRING IT TO FILE A RETURN FOR ASSESSMENT YEAR 2006 - 07. THE ASSESSEE FILED SAME RETURN AS FILED UNDER SECTION 139 OF THE A CT . LD. AO WHILE COMPLETING THE ASSESSMENT UNDER SECTION 153C READ WITH 143(3) OF THE A CT , RETAINED ADDITIONS MADE IN THE O RIGINAL ASSESSMENT ORDER PASSED UNDER SECTION 143 (3) OF THE ACT DATED 31/12/08. 2.1 . AGGRIEVED BY THE ORDER OF LD. AO ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT (A) WHO DECIDED THE ISSUE AS UNDER: 3.2. IN THE ORDER, THE AO HAS NOT MADE ANY FRESH ADDITI ONS TO THE TOTAL INCOME. HE HAS ONLY RETAINED THE ADDITIONS MADE IN THE ORIGINAL ORDER U/S 143(3) DATED 31.12.2008. AS PER THE ASSESSMENT ORDER, THE APPELLANT IS IN APPEAL IN A SEPARATE PROCEEDINGS AGAINST THE SAID ORDER DATED 31.12.2008. IN VIEW OF THI S, I DO NOT FIND ANY MERIT IN THE ITA NO.5631/DEL/2014 A.Y:2006 - 07 KABIR COMMODITIES ZONE P.LTD., VS. DCIT, CC 12, NEW DELHI 3 PRESENT APPEAL. IN CASE THE ADDITIONS MADE TO THE TOTAL INCOME IS MODIFIED ON ADJUDICATION OF APPEAL AGAINST THE ORIGINAL ORDER U/S 143(3), THE PRESENT ORDER COULD ALSO GET MODIFIED ACCORDINGLY. THEREFORE ALL THE GROUNDS TAKEN IN THE APPEAL ARE HEREBY REJECTED AND THE APPEAL IS DISMISSED. 2.2. AGGRIEVED BY THE ORDER OF LD. CIT (A) ASSESSEE IS IN APPEAL BEFORE US NOW. 3 . BEFORE US ASSESSEE HAS CHALLENGED THAT THE ADDITION MADE IN 153C PROCEEDINGS IS NOT BASED ON ANY INCRI MINATING MATERIAL SEIZED DURING SEARCH. HOWEVER THE OBSERVATIONS MADE BY LD. CIT (A) IS VERY MUCH RELEVANT , AS LD. AO HAS ASSESSED THE INCOME UNDER SECTION 153C AT RS.5,92,285/ - , AS THERE WAS NO INCRIMINATING MATERIAL. LD. AO THEREFORE DID NOT MAKE ANY AD DITION UNDER S. 153C PROCEEDINGS. WE , THEREFORE , DO NOT FIND ANY INFIRMITY IN THE OBSERVATIONS OF LD. CIT(A) AND THE SAME IS UPHELD. ACCORDINGLY GROUND RAISED BY ASSESSEE STANDS DISMISSED. 4. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JANUARY, 2018. SD/ - SD/ - (G.D.AGRAWAL) (BEENA A PILLAI) PRESIDENT JUDICIAL MEMBER DT. 19 TH JANUARY, 2018 *MV ITA NO.5631/DEL/2014 A.Y:2006 - 07 KABIR COMMODITIES ZONE P.LTD., VS. DCIT, CC 12, NEW DELHI 4 COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON DRAGON 18.01.2018 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 19.01.2018 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 19.01.2018 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 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