M/s Lakshya Consultants P. Ltd., New Delhi V. DCIT, New Delhi

ITA 6357/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2857 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 13-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUSHMA SINGH
• Keywords: Income from undisclosed sources
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES F : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA.NO.6357/DEL./2016 ASSESSMENT YEAR 2005-2006 M/S. LAKSHYA CONSULTANTS (P) LTD., FLAT NO.4, R.R. APARTMENT, 304, MANGLAPURI, MEHRAULI DELHI 110 030. PAN AEIPG8121L VS. THE DCIT, CENTRAL CIRCLE-14, NEW DELHI. ( APPELLANT ) (RESPONDENT) FOR ASSESSEE : SHRI GAUTAM JAIN, C.A. FOR REVENUE : SMT. SUSHMA SINGH, CIT-DR DATE OF HEARING : 16 .0 3 .20 20 DATE OF PRONOUNCEMENT : 16 .0 3 .20 20 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XXVI, NEW DELHI, DATED 29.9.216, FOR THE A.Y. 2005-2006. 2. IN THIS CASE ASSESSMENT UNDER SECTION 153A/144 OF THE I.T. ACT, 1961 WAS PASSED ON 08.03.2013 BY THE A.O. 2 ITA.NO.6357/DEL./2016 M/S. LAKSHYA CONSULTANTS (P) LTD., NEW DELHI. MAKING ADDITION OF RS.9.78 CRORES ON ACCOUNT OF INCOME FROM UNDISCLOSED SOURCES AND DISALLOWANCE OF EXPENDITURE OF RS.66,921/-. THE ASSESSEE SUBMITTED BEFORE THE LD. CIT(A) THAT IT IS A CASE OF SEARCH AND THERE IS NO REFERENCE TO ANY INCRIMINATING DOCUMENT FOUND DURING THE COURSE OF SEARCH OPERATION. THE ASSESSMENT HAVE BEEN FRAMED WITHOUT REFERENCE TO ANY INCRIMINATING DOCUMENT OR MATERIAL. THE ASSESSEE HAS RELIED UPON SEVERAL DECISIONS IN SUPPORT OF THE CONTENTION INCLUDING JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS., KABUL CHAWLA 380 ITR 573 (DEL.). THEREFORE, NO ADDITION COULD BE MADE IN THE ASSESSMENT. THE LD. CIT(A) ACCEPTED THE CONTENTION OF ASSESSEE AND ALLOWED THIS GROUND OF APPEAL OF ASSESSEE THAT NO ADDITION COULD BE MADE IN THE ABSENCE OF ANY INCRIMINATING MATERIAL. THE LD. CIT(A), THEREAFTER, DECIDED THE APPEAL OF ASSESSEE ON MERITS AND CONFIRMED THE SUBSTANTIVE ADDITION. APPEAL OF ASSESSEE WAS PARTLY ALLOWED. 3. THE ASSESSEE IN THE PRESENT APPEAL HAS CHALLENGED THE ADDITION ON MERITS. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT SINCE NO APPEAL 3 ITA.NO.6357/DEL./2016 M/S. LAKSHYA CONSULTANTS (P) LTD., NEW DELHI. HAVE BEEN FILED BY THE DEPARTMENT ALLOWING THE APPEAL OF ASSESSEE ON LEGAL ISSUE HOLDING THAT NO ASSESSMENT COULD BE FRAMED UNDER SECTION 153A BECAUSE NO INCRIMINATING DOCUMENT WAS FOUND DURING THE COURSE OF SEARCH AGAINST THE ASSESSEE, THEREFORE, APPEAL OF ASSESSEE IS ACADEMIC IN NATURE ONLY. HE SEEKS PERMISSION TO WITHDRAW THE APPEAL AND AN ENDORSEMENT TO THAT EFFECT HAS BEEN MADE ON THE APPEAL PAPERS. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT SINCE NO DEPARTMENTAL APPEAL IS FILED BY THE DEPARTMENT AGAINST THE LEGAL ISSUE DECIDED AGAINST THE REVENUE, THEREFORE, THE ISSUE ON MERIT IS LEFT WITH ACADEMIC DISCUSSION ONLY. WE, THEREFORE, ALLOW THE ASSESSEE TO WITHDRAW THE APPEAL. APPEAL OF ASSESSEE IS DISMISSED AS WITHDRAWN. 4. IN THE RESULT, APPEAL OF THE ASSESSEE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 16 TH MARCH, 2020 VBP/- 4 ITA.NO.6357/DEL./2016 M/S. LAKSHYA CONSULTANTS (P) LTD., NEW DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT F BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.