ITO, New Delhi V. M/s. Glitz Builders Pvt. Ltd., New Delhi

ITA 5791/DEL/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6431 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 10-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AJAY BHAGWANI
• Section: 153A; 274; 132

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BEN CH, NEW DELHI (THROUGH VIDEO CONFERENCING] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 5790/DEL/2016 [A.Y 2008-09] ITA NO. 5791/DEL/2016 [A.Y 2009-10] ITA NO. 5792/DEL/2016 [A.Y 2010-11] THE I.T.O VS. M/S GLITZ BUILDERS PVT LTD. WARD - 10(2) M-11, MIDDLE CIRCLE NEW DELHI CONNAUGHT PLACE NEW DELHI - PAN : AABCG 9311 N [APPELLANT] [RESPONDENT] DATE OF HEARING : 06.09.2021 DATE OF PRONOUNCEMENT : 06.09.2021 ASSESSEE BY : SHRI AJAY BHAGWANI, C .A. REVENUE BY : MS. SUNITA SINGH, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THESE THREE SEPARATE APPEALS BY THE REVENUE ARE PRE FERRED AGAINST A CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - 30, NEW DELHI DATED 22.07.2016. 2 2. SINCE COMMON ISSUES ARE INVOLVED IN THE CAPTIONE D APPEALS THEY WERE HEARD TOGETHER AND ARE DISPOSED OF BY THIS COM MON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. THE COMMON GRIEVANCE IN ALL THE CAPTIONED APPEAL S RELATES TO THE FINDING OF THE LD. CIT(A) WHO HELD THAT NO ADDITION CAN BE MADE IN AN ASSESSMENT COMPLETED U/S 153A OF THE INCOME TAX ACT , 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] IF NO INCRIMINATING DOCUMENTS WERE FOUND. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT S EARCH AND SEIZURE OPERATION WAS CARRIED OUT ON THE VARIOUS PREMISES O F M/S BPTP LTD AND ITS GROUP CONCERNS. THE ASSESSEE COMPANY IS ASSOCI ATED WITH BPTP GROUP OF CASES. POST SEARCH, NOTICE U/S 153A OF TH E ACT WAS ISSUED AND SERVED UPON THE ASSESSEE ASKING IT TO FILE ITS RETU RN OF INCOME WITHIN 15 DAYS OF SERVICE OF NOTICE. 5. THE ASSESSEE RESPONDED TO THE NOTICE AND FILED I TS RETURN OF INCOME U/S 153A OF THE ACT. 3 6. INCOME WAS ASSESSED AFTER MAKING ADDITION ON ACC OUNT OF INTEREST ON POST DATED CHEQUES AMOUNTING TO RS. 4,08,48,675 IN A.Y 2008-09, RS. 3,09,17,775/- IN A.Y 2009-10 AND RS. 2,04,63,75 0/- IN A.Y 2010-11. 7. ADDITIONS WERE ASSAILED BEFORE THE LD. CIT(A) WH EREIN IT WAS STRONGLY CONTENDED THAT THE ADDITIONS ARE DEVOID OF ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH AND SEIZ URE OPERATION. STRONG RELIANCE WAS PLACED ON THE DECISION OF THE H ON'BLE JURISDICTIONAL HIGH COURT OF DELHI IN THE CASE OF KABUL CHAWLA 61 TAXMANN.COM 412 AND IN THE CASE OF MS. LATA JAIN ITA NO. 274 TO 276 /2016. 8. THE LD. CIT(A) AFTER CONSIDERING THE FACTS AND S UBMISSIONS, FOUND THAT THE ADDITION MADE BY THE ASSESSING OFFICER IS BASED ON INCRIMINATING MATERIAL FOUND IN EARLIER SEARCH ACTI ON CARRIED OUT U/S 132 OF THE ACT ON 15.11.2007 IN OTHER GROUP COMPANI ES AND THERE WAS NO INCRIMINATING DOCUMENT FOUND AND SEIZED IN SEARC H ACTION CARRIED OUT ON 07.12.2010 BELONGING TO THE ASSESSEE. FOLLO WING THE RATIO LAID DOWN BY THE HON'BLE JURISDICTIONAL HIGH COURT IN TH E CASE OF KABUL CHAWLA [SUPRA], THE LD. CIT(A) HELD THAT NO ADDITIO N CAN BE MADE IN AN ASSESSMENT COMPLETED U/S 153A OF THE ACT IF NO INCR IMINATING DOCUMENT IS FOUND IN THE SEARCH ACTION. 4 9. BEFORE US, THE LD. DR SUPPORTED THE FINDINGS OF THE ASSESSING OFFICER BUT COULD NOT POINT OUT ANY ERROR IN THE FI NDINGS OF THE LD. CIT(A). 10. PER CONTRA, THE LD. COUNSEL FOR THE ASSESSEE SU PPORTED THE FINDINGS OF THE LD. CIT(A). 11. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITIES BELOW. IT IS TRUE THAT DURING THE COURSE OF SEARCH OPERATI ON CONDUCTED ON 15.11.2007, SOME INCRIMINATING DOCUMENTS WERE FOUND . IT IS EQUALLY TRUE THAT NO INCRIMINATING DOCUMENT HAS BEEN FOUND AND SEIZED IN THE SEARCH ACTION CARRIED OUT ON 07.12.2010 AND THERE I S NO DISPUTE THAT THE ASSESSMENT UNDER CONSIDERATION IS RELATING TO T HE SEARCH ACTION U/S 132 OF THE ACT CARRIED OUT ON 07.12.2010. THESE BE ING THE FACTS OF THE CASE, THE RATIO LAID DOWN BY THE HON'BLE HIGH COURT OF DELHI IN THE CASE OF KABUL CHAWLA [SUPRA] SQUARELY APPLIES ON THE FAC TS OF THE CASE IN HAND AND, THEREFORE, THE FINDINGS OF THE LD. CIT(A) CANNOT BE FAULTED WITH. 5 13. IN THE RESULT, ALL THE THREE CAPTIONED APPEALS OF THE REVENUE IN ITA NOS. 5790, 5791 AND 5792/DEL/2016 ARE DISMISSED . 12. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 06.09. 2021 IN THE PRESENCE OF BOTH THE RIVAL REPRESENTATIVES. SD/- SD/- [ SUCHITRA KAMBLE ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 06 TH SEPTEMBER, 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 DATE 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 WEBSITE 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