ACIT, New Delhi V. M/s Jakson Ltd., Noida

ITA 6062/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2039 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 28-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAINA SOIN KAPIL
• Keywords: Bogus purchase; Search and seizure; Tax effect
• Section: 132; 153A; 14A; 80IB; 133(6); 201; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : D : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NOS.6062 TO 6065/DEL/2016 ASSESSMENT YEARS: 2008-09 TO 2011-12 ACIT, CENTRAL CIRCLE-4, NEW DELHI. VS JAKSON LTD., A-43, PHASE II, NOIDA EXTENSION, NOIDA. PAN: AAACJ5347C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VED JAIN, CA REVENUE BY : SMT. NAINA SOIN KAPIL, SR. DR DATE OF HEARING : 04.09.2019 DATE OF PRONOUNCEMENT : 06.09.2019 ORDER PER R.K. PANDA, AM: ITA NOS.6062 TO 6064/DEL/2016 FILED BY THE REVENUE ARE DIRECTED AGAINST THE COMMON ORDER DATED 23 RD SEPTEMBER, 2016 OF THE CIT(A)-23, NEW DELHI, RELATING TO ASSESSMENT YEARS 2008-09, 2009-10 AND 2 010-11 RESPECTIVELY. ITA NO.6065/DEL/2016 FILED BY THE REVENUE IS DIRECTED A GAINST THE ORDER DATED 28 TH SEPTEMBER, 2016 OF THE CIT(A)-23, NEW DELHI FOR ASS ESSMENT YEAR 2011-12. SINCE ITA NOS.6062 TO 6065/DEL/2016 2 IDENTICAL GROUNDS ARE TAKEN BY THE REVENUE IN ALL T HESE APPEALS, THEREFORE, THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF FOR T HE SAKE OF CONVENIENCE. ITA NO.6062/DEL/2016 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS ERRED IN: 1. THE ORDER OF THE CIT(A) IS NOT CORRECT IN LAW AND F ACTS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE T HE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.1,07,69,589/- MADE BY THE A.O. ON ACCOUNT OF BOGUS PURCHASES. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND ANY/ALL TH E GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF TH E APPEAL. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF ELECTRIC GENERA TING SETS. IT FILED ITS RETURN OF INCOME ON 29.09.2008 DECLARING THE TOTAL INCOME AT RS.6,81,94,190/-. A SEARCH AND SEIZURE ACTION U/S 132 OF THE ACT WAS CONDUCTED ON JAKSONS GROUP OF CASES ON 3 RD OCTOBER, 2013. IN RESPONSE TO NOTICE U/S 153A, THE ASSESSEE FILED ITS RETURN OF INCOME DECLARING THE INCOME OF RS.6,81,94,190/- ON 23 RD JANUARY, 2015. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S 143( 3) READ WITH SECTION 153A OF THE IT ACT DETERMINING THE TOTAL INCOME AT RS.8,03, 77,030/- WHEREIN HE MADE ADDITION OF RS.1,07,69,589/- ON ACCOUNT OF BOGUS PU RCHASES. SIMILAR ADDITION HAS BEEN MADE FOR DIFFERENT ASSESSMENT YEARS WHICH ARE AS UNDER:- 2009-10 - RS.1,46,46,039/- 2010-11 - RS.2,05,12,926/- ITA NOS.6062 TO 6065/DEL/2016 3 2011-12 - RS.1,04,01,980/- 4. IN APPEAL, THE LD.CIT(A), FOLLOWING THE DECISION OF THE OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA REPORTED IN 234 TAXMAN 300, DELETED THE ADDITION ON THE GROUND THAT THE ADDITIO N IS NOT BASED ON ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF S EARCH. 5. AGGRIEVED WITH THE ORDER OF THE CIT(A), THE REVE NUE IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE DECISION CITED ABOVE. W E FIND THE ORIGINAL RETURN IN THE INSTANT CASE WAS FILED ON 29 TH SEPTEMBER, 2008 DECLARING THE TOTAL INCOME AT RS.6,81,94,190/-. THE FIRST SEARCH IN THE INSTANT CASE TOOK PLACE ON 10 TH FEBRUARY, 2010 AND THE ASSESSING OFFICER COMPLETED THE ASSESS MENT U/S 153A OF THE IT ACT ON 30 TH DECEMBER, 2011 DETERMINING THE TOTAL INCOME AT RS. 6,96,07,439/- WHEREIN ADDITION OF RS.12,80,963/- WAS MADE U/S 14A OF THE ACT AND ADDITION OF RS.1,32,286/- WAS MADE ON ACCOUNT OF INCOME FROM SC RAP SALE DISALLOWED U/S 80IB OF THE ACT. THE TRIBUNAL, VIDE ORDER DATED 21 ST DECEMBER, 2015 VIDE, ITA NO.6788/DEL/2013, DELETED THE ADDITION ON THE GROUN D THAT SINCE NO INCRIMINATING MATERIAL WAS UNEARTHED DURING THE COURSE OF SEARCH, THE ADDITION MADE BY THE ASSESSING OFFICER ARE UNSUSTAINABLE. THEREAFTER, SE ARCH U/S 132 OF THE ACT WAS INITIATED IN THE CASE OF THE ASSESSEE COMPANY ON 3 RD OCTOBER, 2013. DURING THE ITA NOS.6062 TO 6065/DEL/2016 4 COURSE OF SECOND SEARCH OPERATION ALSO NO INCRIMINA TING MATERIAL WAS FOUND WHICH IS EVIDENT FROM THE COPY OF THE ASSESSMENT ORDER. WE FIND THE ASSESSING OFFICER ON THE BASIS THAT NOTICES ISSUED U/S 133(6) OF THE ACT TO VARIOUS PARTIES ON THE REGISTERED ADDRESSES WHICH REMAINED UNCOMPLIED WITH , MADE ADDITION OF RS.1,07,69,589/- TO THE TOTAL INCOME OF THE ASSESSE E ON ACCOUNT OF BOGUS PURCHASES. WE FIND THE LD.CIT(A) DELETED THE SAME FOLLOWING TH E DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA (SUPRA) ON THE GROUND THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE COUR SE OF SEARCH AND THE ADDITION IS NOT BASED ON ANY INCRIMINATING MATERIAL AND THE ASS ESSMENT WAS NOT PENDING. WE, THEREFORE, FIND NO INFIRMITY IN THE ORDER OF THE CI T(A) DELETING THE ADDITION SO MADE BY RELYING ON THE DECISION OF THE HON'BLE DELH I HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA (SUPRA) WHICH HAS SUBSEQUENTLY BEEN FOLLOWED BY THE HON'BL E DELHI HIGH COURT IN THE CASE OF PCIT VS. VARUN BEVERAGES LTD. IN ITA 561/2019, ORDER DATED 02.07.2019 . WE, THEREFORE, UPHOLD THE ORDER OF THE CIT(A) AN D DISMISS THE GROUNDS RAISED BY THE REVENUE. ITA NOS.6063 TO 6065/DEL/2016 (A.YS: 2009-10 TO 201 1-12) 7. AFTER HEARING BOTH THE SIDES, WE FIND THE GROUND S RAISED BY THE REVENUE IN ALL THESE APPEALS ARE SIMILAR TO THE GROUNDS RAISED IN ITA NO.6062/DEL/2016 (A.Y. 2008-09). WE HAVE ALREADY DECIDED THE ISSUE AND TH E GROUNDS RAISED BY THE REVENUE HAVE BEEN DISMISSED. FOLLOWING THE SIMILAR REASONINGS THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. ITA NOS.6062 TO 6065/DEL/2016 5 8. EVEN OTHERWISE ALSO, THE TAX EFFECT INVOLVED IN THE GROUNDS RAISED BY THE REVENUE IN THE ABOVE APPEALS EXCEPT ITA NO.6064/DEL /2016 (A.Y. 2010-11) ARE BELOW RS.50 LAKHS BEING THE MONETARY LIMIT PRESCRIB ED FOR FILING OF APPEALS BEFORE THE TRIBUNAL. THEREFORE, IN VIEW OF THE CBDT CIRCUL AR NO.17/2019 DATED 8 TH AUGUST, 2019 RAISING THE MONETARY LIMITS FOR FILING OF THE APPEALS BY THE REVENUE BEFORE THE TRIBUNAL TO RS.50 LAKHS AND THE SUBSEQUE NT CLARIFICATION DATED 20 TH AUGUST, 2019 TO THE EFFECT THAT THE SAID CIRCULAR I S APPLICABLE EVEN TO PENDING APPEALS, THE APPEAL FILED BY THE REVENUE IS NOT MAI NTAINABLE. IN VIEW OF THE ABOVE DISCUSSION, ALL THE APPEALS FILED BY THE REVENUE AR E DISMISSED. 9. IN THE RESULT, ALL THE FOUR APPEALS FILED BY THE REVENUE ARE DISMISSED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 6.09.2019. SD/- SD/- (KULDIP SINGH) (R.K. PANDA) JUDICIAL MEMBER ACCO UNTANT MEMBER DATED: 06 TH SEPTEMBER, 2019 DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI