Naveen Kumar Gupta, New Delhi V. ITO, Ward-26(1), New Delhi

ITA 592/DEL/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6707 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 30-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 143(3); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI (THROUGH VIDEO CONFERENCING] BEFORE SHRI AAKASH DEEP JAIN, VICE PRESIDENT AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA No. 592/DEL/2020 [A.Y 2011-12] Shri Naveen Kumar Gupta Vs. The I.T.O F-26/124, Sector - 7 Ward - 26(1) Rohini, New Delhi New Delhi PAN: AECPG 0917 M (Applicant) (Respondent) Assessee By : Shri Kapil Goel, Adv Department By : Ms. Sarita Kumari, CIT-DR Date of Hearing : 09.12.2021 Date of Pronouncement : 09.12.2021 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] - 09, New Delhi dated 26.11.2019 pertaining to A.Y 2011-12. 2 2. The assessee has raised as many as five grounds of appeal but before us the ld. AR insisted upon Ground No. 1.3 which reads as under: “1.3 That on the facts and in the circumstances of the case and in law, Id C1T-A erred in sustaining the order passed by Ld AO u/s 147/143(3) without appreciating that for reopening on basis of information reed from ACIT Central Circle 26 New Delhi (AO of searched person) that too on basis of search action conducted on 17.12.2015 which is very important as law contained in section 153C underwent amendment w.ef 1.6.2015 which specific provision has not been applied and mere general provision of section 148 is wt "reasons Ld AO has himself mentioned documents pertaining and relating to assessee herein which shows jurisdictional defect in subject proceedings” 3. Representative of both the sides were heard at length on the aforementioned ground argued during the course of hearing before us. 4. We have carefully perused the orders of the authorities below. The undisputed fact is that the assessment order dated 26 12.2018, which is framed under section 147 r.w.s 143(3) of the Act. It is also not in dispute that the reasons for reopening assessment relates to information/ 3 evidences unearthed during the course of operation conducted on Shri Anand Kumar Jain and Shri Naresh Kumar Jain group of cases on 17.12.2015. 5. On these facts, it was incumbent upon the Assessing Officer to proceed against the assessee in light of provisions of section 153C of the Act as provisions of section 153C of the Act covers the situation where an alleged incriminating document pertaining to an assessee is found during search at third party premises. 6. Furthermore, the provisions of section 153C of the Act are non- obstante provisions and the same specifically excludes the operation of Section 147 of the act. Therefore, in our considered opinion, the Assessing Officer in the present case has grossly erred in invoking the provisions of section 147 instead of section 153C of the Act. 7. We are of the considered view that if the alleged action of the Assessing Officer under section 147 of the Act is permitted on the basis of documents found in the course of search of third parties premises, then 4 provisions of section 153C of the Act would become redundant. Considering the facts of the case in totality, in light of the relevant provisions of the Act, we have no hesitation in quashing the assessment order qua Ground No. 1.3 making all other grounds of appeal otiose. 8. In the result, the appeal of the assessee in ITA No. 592/DEL/2020 is allowed. The order is pronounced in the open court on 09.12.2021. Sd/- Sd/- [AAKASH DEEP JAIN] [N.K. BILLAIYA] VICE PRESIDENT ACCOUNTANT MEMBER Dated: 09 th December, 2021 VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 5 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