Mrs. Meena Rani, New Delhi V. ACIT, New Delhi

ITA 6209/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91224 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 12-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 20-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GUNJAN P RASAD
• Assessee Lawyers: SUMIT GOE L
• Keywords: Gift; Search and seizure; Document seized; Documents seized
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO.6209/DEL./2013 (ASSESSMENT YEAR : 2007-08) MS. MEENA RANI, VS. ACIT, CENTRAL CIRCLE 19, C/O RAJ KUMAR & ASSOCIATES, NEW DELHI. CHARTERED ACCOUNTANTS, 4435/7, ANSARI ROAD, DARYAGANJ, NEW DELHI 110 002. (PAN : AAWPR6753E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. GUPTA, CA AND SHRI SUMIT G OEL, CA REVENUE BY : SHRI GUNJAN PRASAD, CIT DR DATE OF HEARING : 12.06.2015 DATE OF PRONOUNCEMENT : 17.06.2015 O R D E R PER GEORGE GEORGE K., JUDICIAL MEMBER : THIS APPEAL, AT THE INSTANCE OF THE ASSESSEE, IS DI RECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-X XXIII, NEW DELHI DATED 21.08.2013. THE RELEVANT ASSESSMENT YEAR IS 2007-08 . 2. BRIEF FACTS OF THE CASE ARE AS FOLLOWS. A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT IN RH AGRO GROUP OF CASES. NOTICE U/S 153A READ WITH SECTION 153C OF TH E ACT WAS ISSUED ON ITA NO.6209/DEL./2013 2 31.12.2009 REQUIRING THE ASSESSEE TO FILE RETURN OF INCOME FOR ASSESSMENT YEAR UNDER CONSIDERATION. THE ASSESSEE FILED PHOTO COPY OF THE RETURN DECLARING TOTAL INCOME AT RS. 2,79,000/-. THE ASSES SING OFFICER COMPLETED THE ASSESSMENT AT A TOTAL INCOME OF RS.4,78,900/- A FTER MAKING ADDITION OF RS.1,99,000/- ON ACCOUNT OF GIFT REMAINING UNCONFIR MED. THE CIT(A) CONFIRMED THE AOS ACTION DISMISSING THE ASSESSEES APPEAL. 3. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE ASSESSEE FILED THE FOLLOWING EFFECTIVE GROUN DS BEFORE US :- 1. THAT IN THE ABSENCE OF ANY INCRIMINATING MATERI AL FOUND BELONGING TO ASSESSEE DURING THE COURSE OF SE ARCH ON A 3 RD PARTY, THE ASSUMPTION OF JURISDICTION U/S 153C IS UNWARRANTED, THEREFORE, CONSEQUENTIAL ASSTT. ORDER FRAMED U/S 153C IS ILLEGAL AND WITHOUT JURISDICTION. 2. THAT UNDER THE FACTS AND CIRCUMSTANCES, SINCE, T HE ISSUE OF RECEIPT OF GIFT OF RS.1,99,900/- IS NOT EM ANATING FROM ANY SEIZED MATERIAL DURING SEARCH ON A 3 RD PARTY AND SINCE, NO ADDITION FOR THE SAME CAN BE MADE IN ASST T. FRAMED U/S 153C. 5. THE ASSESSEE HAS ALSO FILED AN APPLICATION FOR A DMISSION OF THE FOLLOWING ADDITIONAL GROUND :- THAT IN THE ABSENCE OF RECORDING ANY SATISFACTION FOR FINDING ANY VALUABLE OR RECORDS BELONGING TO THE AS SESSEE DURING SEARCH ON A 3 RD PERSON BY THE AO OF SEARCHED PERSON OR OTHERWISE, AS ENVISAGED U/S. 153C(1), THE COMPLETE PROCEEDINGS ARE ILLEGAL AND WITHOUT JURISD ICTION. AFTER HEARING BOTH THE SIDES, WE ADMIT THE ADDITION AL GROUND AND TAKE UP THE SAME FOR DISPOSAL AS IT IS A PURE LEGAL ISSUE WHICH GOES TO THE ROOT ITA NO.6209/DEL./2013 3 OF THE MATTER AND NO NEW FACTS ARE REQUIRED TO BE I NVESTIGATED OR PLACED ON RECORD FOR ADJUDICATING OF THE SAME. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO SATISFACTION WAS RECORDED BY THE ASSESSING OFFICER IN THE CASE OF SE ARCHED PERSONS BUT WAS RECORDED IN THE CASE OF ASSESSEE AND, THEREFORE, IN VIEW OF THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD. VS. ACIT 367 ITR 112, THE ENTIRE PROCEEDINGS WERE ILLEGAL. T HE LD. COUNSEL ALSO RELIED ON VARIOUS JUDICIAL PRONOUNCEMENTS. THE LD. COUNSEL FURTHER SUBMITTED THAT THE TRIBUNAL HAS ALSO ON THE SAME RE ASONING CANCELLED THE ASSESSMENT ORDER IN ASSESSEES OWN CASE FOR ASSESSM ENT YEAR 2006-07 IN ITA NO.256/DEL/2013 VIDE ORDER DATED 29.04.2015 (CO PY PLACED ON RECORD). 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL ON RECORD. AT PAGE 2 OF THE PB, THE SATISFACTION NO TE RECORDED BY DCIT, CENTRAL CIRCLE,19, NEW DELHI IS CONTAINED, WHICH IS REPRODUCED HEREUNDER: SATISFACTION NOTE FOR INITIATING PROCEEDINGS U/S 1 53C OF INCOME TAX ACT, 1961IN THE CASE OF SMT. MEENA RANI, A-7, IST FLOOR, SOUTH EXTENSION-II, NEW DELHI. 31.12.2009: SEARCH AND SEIZURE OPERATION UNDER SEC TION 132 OF INCOME TAX ACT, 1961 IN DAAWAT GROUP (L.T. F OODS LIMITED) OF CASES INCLUDING M/S R.H. AGRO GROUP WAS CONDUCTED ON 10.02.2009 AT THE BUSINESS PREMISES AN D AT THE RESIDENTIAL PREMISES OF THE DIRECTORS. DURING THE C OURSE OF SEARCH ACTION VARIOUS DOCUMENTS WERE FOUND AND SEIZ ED. WHILE EXAMINING THE SEIZED DOCUMENTS OF THIS GROUP, I HAVE COME ACROSS WITH THE FOLLOWING DOCUMENTS: ITA NO.6209/DEL./2013 4 S.NO. PREMISES FORM WHERE SEIZED ANNEXURE NO. & PAGE NO. REMARKS 1. A-7, 1 ST FLOOR, SOUTH EXTENSION PART- II, NEW DELHI ANNEXURE A- 3, PAGE 46 FORM NO.32 CONTAINS THE PARTICULARS OF APPOINTMENT OF MRS. MEENA RANI AS ADD DIRECTORS PURSUANT TO SECTION 303(2) OF THE COMPANIES ACT, 1956 IN M/S. FLAIR FURNITURE PVT. LTD. 2. A-7, 1 ST FLOOR, SOUTH EXTENSION PART- II, NEW DELHI ANNEXURE A- 1, PAGE 94 THIS DOCUMENT CONTAINS THE COPY OF CAPITAL ACCOUNT OF SMT. MEENA RANI WITH M/S R.S. RICE & GEN MILLS, BHIKHIWIND (AMRITSAR) I HAVE GONE THROUGH THE ABOVE DOCUMENTS AND FROM TH E EXAMINATION OF THE SAME I AM SATISFIED THAT THESE D OCUMENTS BELONG TO MRS MEENA RANI AND THEREFORE, ACTION U/S 153C OF THE INCOME TAX ACT IS ATTRACTED IN THIS CASE. NOTIC ES U/S 153A READ WITH SECTION 153C OF INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEARS 2003-04 TO 2008-09 ARE BEING ISSUE D. A PERUSAL OF THE SATISFACTION NOTE MAKES IT CLEAR T HAT THIS HAS BEEN RECORDED IN THE RECORDS OF ASSESSEE AND NOT IN THE RECORDS O F THE SEARCHED PERSONS BECAUSE NOTICE U/S 153A READ WITH SECTION 153C WAS ISSUED BY THE ITA NO.6209/DEL./2013 5 ASSESSING OFFICER AFTER EXAMINING THE DOCUMENTS MEN TIONED IN THE SATISFACTION NOTE. THEREFORE, THIS SATISFACTION NOT E DOES NOT MEET THE REQUIREMENTS OF LAW. THEREFORE, RESPECTFULLY FOLLOW ING THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF PEPSI FOODS (P) LTD. AND THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSME NT YEAR 2006-07, CITED SUPRA, WE ALLOW THE ADDITIONAL GROUND AND THE IMPUG NED ASSESSMENT ORDER IS QUASHED. 8. SINCE WE HAVE QUASHED THE ASSESSMENT ORDER WHILE DECIDING THE ADDITIONAL GROUND, THE OTHER GROUNDS TAKEN BY THE A SSESSEE HAS BECOME ACADEMIC AND ARE NOT ADJUDICATED. 9. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 17 TH DAY OF JUNE, 2015. SD/- SD/- (S.V. MEHROTRA) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 17 TH DAY OF JUNE, 2015 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXXIII, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.