HARVANSH CHAWLA, NEW DELHI V. ACIT, CENTRAL CIRCLE- 5, NEW DELHI

ITA 763/DEL/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6204 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 21-06-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AMIT GOEL
• Keywords: Depreciation
• Section: 153A; 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. 763/DEL/2016 [A.Y 2011-12] ITA NO. 764/DEL/2016 [A.Y 2012-13] ITA NO. 765/DEL/2016 [A.Y 2013-14] SHRI HARVANSH CHAWLA VS. THE A.C.I.T C-17, GF, EAST NIZAMUDDIN CENTRAL CIRCLE - 5 NEW DELHI NEW DELHI PAN : ADDPC 7559 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 09.09.2021 DATE OF PRONOUNCEMENT : 09.09.2021 ASSESSEE BY : SHRI AMIT GOEL, C.A. REVENUE BY : MS. SUNITA SINGH, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THESE THREE SEPARATE APPEALS BY THE ASSESSEE ARE PR EFERRED AGAINST A CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME TA X [APPEALS] - 24, NEW DELHI DATED 27.05.2021 PERTAINING TO ASSESSMENT YEA RS 2011-12, 2012-13 AND 2013-14. 2 2. SINCE THE FIRST APPELLATE AUTHORITY HAD DISPOSED OF THE APPEALS BY WAY OF A CONSOLIDATED ORDER AND SINCE IN THE CAPTIONED APPEALS BEFORE US THE GRIEVANCES OF THE ASSESSEE ARE IDENTICAL, THEREFORE , ALL THESE APPEAL ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CO NVENIENCE AND BREVITY. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT S EARCH AND SEIZURE OPERATION U/S 132 OF THE INCOME-TAX ACT, 1961 [HERE INAFTER REFERRED TO AS 'THE ACT'] WAS CARRIED OUT ON 07.04.2016. STATUTOR Y NOTICES U/S 153A OF THE ACT WERE ISSUED AND SERVED UPON THE ASSESSEE IN RES PONSE TO WHICH THE ASSESSEE FILED HIS RETURN OF INCOME. ASSESSMENT WAS COMPLETED BY MAKING ADDITION ON ACCOUNT OF DISALLOWANCE OF DEPRECIATION AND ON ACCOUNT OF DISALLOWANCE OF INTEREST EXPENSES, THOUGH THE QUANT UM MAY DIFFER IN THE CAPTIONED APPEALS. 4. AS MENTIONED ELSEWHERE, THE DATE OF SEARCH BEING 07.04.2016, ASSESSMENT YEARS UNDER CONSIDERATION WERE PART OF B LOCK OF SIX ASSESSMENT YEARS. IT IS A SETTLED LAW BY THE DECISION OF THE HON'BLE HIGH COURT OF DELHI THAT IN ASSESSMENT FRAMED U/S 153A OF THE ACT, ADDI TIONS/DISALLOWANCES SHOULD HAVE DIRECT NEXUS WITH INCRIMINATING MATERIA L FOUND AT THE TIME OF SEARCH. THIS PRINCIPLE HAS BEEN LAID DOWN BY THE H ON'BLE HIGH COURT OF DELHI IN THE CASES OF KABUL CHAWLA IN 380 ITR 573 AND MEE TA GUTGUTIA PROP. M/S. FERNS, N PETALS IN ITA NO.306 TO 308/2017 DATED 2 5.05.2017 AND OTHERS. AS THE ADDITIONS/ DISALLOWANCES ARE NOT BASED ON AN Y INCRIMINATING MATERIAL, 3 IN LIGHT OF THE DECISION OF THE HON'BLE JURISDICTIO NAL HIGH COURT OF DELHI, ADDITIONS ARE DIRECTED TO BE DELETED. 5. IN ASSESSMENT YEAR 2013-14, ITA NO. 765/DEL/2021 , THERE IS AN ADDITION OF RS. 2,02,548/- MADE ON PROTECTIVE BASIS . THE ASSESSING OFFICER HAS MADE SUBSTANTIVE ADDITION OF THIS AMOUNT UNDER THE PROVISIONS OF BLACK MONEY ACT. IN OUR CONSIDERED VIEW, ONCE THE SUBSTA NTIVE ADDITION HAS BEEN MADE UNDER THE BLACK MONEY ACT, THE SAME AMOUNT ADD ED UNDER THE I.T. ACT WOULD AMOUNT TO DOUBLE ADDITION AND SINCE THIS IS A PROTECTIVE ADDITION, IT BECOMES OTIOSE. 6. IN THE RESULT, ALL THE THREE CAPTIONED APPEALS O F THE ASSESSEE IN ITA NOS. 763, 764 AND 765/DEL/2021 ARE ALLOWED. 12. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09.09. 2021 IN THE PRESENCE OF BOTH THE RIVAL REPRESENTATIVES. SD/- SD/- S [ SUCHITRA KAMBLE ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09 TH SEPTEMBER, 2021 VL/ 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 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