Rahul Agarwal, New Delhi V. ACIT Circle-46(1), New Delhi

ITA 7955/DEL/2019

AI Insights

The case involves Rahul Agarwal, the appellant, who filed an appeal against the order of the CIT(A)-16, New Delhi, dated 26.07.2019. The primary contention was regarding the validity of the assessment completed under section 153A of the Income Tax Act, following a search and seizure operation conducted on 02.09.2011. The AO's satisfaction recorded on 17.07.2018, which initiated proceedings under section 147, was challenged on the grounds that it was based on a misinterpretation of the assessment history, particularly overlooking the abated assessment for the year prior to the search. The tribunal's decision to allow the appeal was based on the finding that the AO's actions were not in accordance with the legal provisions, thus rendering the assessment void ab initio.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131640 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 13-06-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 29-09-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 143(3); 153A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 7955/Del/2019 : Asstt. Year: 2011-12 Rahul Agarwal, 1241, FF, Kucha Bagh, Chandni Chowk, New Delhi-110006 Vs. ACIT, Circle-46(1), New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AGCPA0708P Assessee by : Sh. Salil Agarwal, Adv. Revenue by : Ms. Indu Bala Saini, Sr. DR Date of Hearing: 14.06.2023 Date of Pronouncement: 20.06.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-16, New Delhi dated 26.07.2019. 2. In this case,  The assessee filed return of income on 12.08.2011declaring total income of Rs.28,81,392/-.  A search & seizure action has been conducted on the assessee on 02.09.2011.  The assessment has been completed u/s 153A on 27.03.2014 owing to search & seizure action.  The AO recorded satisfaction on 17.07.2018 wherein it has been mentioned that in this case a return of income was filed for the year under consideration but no scrutiny ITA No. 7955/Del/2019 Rahul Agarwal 2 assessment u/s 143(3) of the Act was made. The reasons recorded on 17.07.2018 are as under: “5. In this case a return of income was filed for the year under consideration but no scrutiny assessment u/s 143(3) of the Act was made. Accordingly, in this case, the only requirement to initiate proceeding u/s 147 is reason to believe which has been recorded above.” 3. Since, it is an abated assessment, the assessment would also include seized material and also any other information available to the revenue leading to complete scrutiny assessment. This goes to prove that the Assessing Officer has not verified the history of the case that the Assessment Year in question was an abated assessment pertaining to one year prior to the search year wherein the assessment u/s 153A has been completed and hence the satisfaction recorded on wrong facts cannot be held to be legally valid and consequently, the assessment completed is void ab initio. 4. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 20/06/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 20/06/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR