Meera Gupta, Noida V. DCIT, Circle-20(1), New Delhi

ITA 8644/DEL/2019

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8276 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 04-03-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 04-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 132; 15; 43; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.8644/DEL/2019 Assessment Year 2012-13 Meera Gupta A-76, Sector-17 GB Nagar, Noida Uttar Pradesh Vs. DCIT Circle-20(1) New Delhi TAN/PAN: AAMPG3386P (Appellant) (Respondent) Appellant by: Shri Suresh Kumar Gupta, Adv. Respondent by: Sh. Subhra Jyoti Chakraborty, CIT-DR Date of hearing: 05 03 2024 Date of pronouncement: 13 03 2024 O R D E R PER PRADIP KUMAR KEDIA-AM: T h e c a pt i o ne d a pp e a l ha s b e e n f i l e d b y th e a s s e s s e e a ga i n s t t he or d e r o f t he C om m i s s i on e r o f I nc o m e T a x ( A p pe a l s ) -XX V , N e w D e l hi (‘ C IT ( A ) ’ i n s h o r t ) da t e d 20 . 0 9. 2 0 19 a ri s in g f r o m the a s s e s s m e n t or d e r da t e d 30 . 12 . 2 01 6 p a s s e d b y t h e A s s e s s i n g O f f i c e r ( AO ) u n d e r Se c t i on 15 3 A r . w . Se c t i o n 14 3 (3 ) o f t he I n c om e T a x A c t , 19 61 (t h e A c t ) c on c e rn i n g A Y 20 1 2 - 13 . 2. I n t h e c a p t i o n e d a p pe a l , t h e a s s e s s e e h a s r a i s e d s e ve r a l g r o u nd s a nd ha s i nt e r a l i a c h a l l e nge d t h e a c t i on of t h e R e ve nu e A ut h or i t i e s ove r t he l e git i m a c y of a d d i ti o n s / d i s a l l o w a n c e s m a d e u n d er Se c t i o n 1 53 A o f t he A c t. W e th u s d e e m it e x pe d i e n t t o d is p o s e o f t he a f o r e s a id pr e l i m i na r y g ro u nd a s i t s t r i ke s t o t he r o o t o f t h e m a t t e r . 3. B r ie f l y s t a te d , i n t h e p re s e nt c a s e , a s e a r c h a cti o n un de r S e c t i on 13 2 w a s c o n d uc t e d o n t he a s s e s s e e on 1 2. 11 . 20 1 4. C on s e q u e nt l y, n o ti c e un d e r Se c t i o n 1 5 3 A of t he A c t w a s i s s ue d a nd p r oc e ed i n g s u n d e r Se c t i o n 15 3 A w e re s e t i n m ot i o n . A n a s s e s s m e n t o r d e r u n de r Se c t i o n 15 3A r . w . I.T.A. No.8644/Del/2019 2 Se c t i on 1 4 3 ( 3 ) w a s f r a m e d f o r t h e A s s e s s me n t Y e a r 20 1 2 - 1 3 i n qu e s t i o n a nd s e ve r a l a dd i t io n s w e r e m a d e b y t h e A O t o t h e i nc o m e r e t ur n e d u n d e r Se c t i on 1 5 3 A o f t h e A c t . 4. I n t he f i r s t a p pe a l , t h e C I T ( A ) c o nf i rm e d t h e a ct i on o f t he A s s e s s i n g O f f i c e r t o w a r d s a dd i t i o n s o f R s . 20 La k h un de r S e c t i o n 6 8 o f t he A c t a n d R s . 5 La k h u n d e r Se c t i o n 6 9 o f t h e A c t . 5. A gg ri e ve d, t he a s s e s s e e p re f e rr e d a pp e a l b e f o r e t h e T r ib u na l to a s s a i l t h e a c t i o n o f C I T (A ). 6. W h e n t he m a t t e r w a s c a l l e d f or h e a ri n g , t h e l d . c o un s e l s ub m i t t e d a t th e o ut s e t t h a t t h e s e a r c h w a s c o n du c t e d i n t he p re s e n t c a s e on 12 . 1 1. 2 0 14 a n d t he a s s e s s m e nt f o r A . Y . 2 01 2 -1 3 a l r ea d y s t oo d c o n c l u d e d a t t h e ti m e o f s e a r c h a n d r e m a i n e d u n a b a t e d. T h e re fo r e , t h e a dd i t i on s m a de u nd e r Se c t i on 15 3 A i s s q u a r e l y d e p e n d e nt u po n th e d is c o ve r y o f a ny i nc r i m i na t i n g d oc u m e nt i n t h e c ou r s e of t he s e ar c h i n t he c a s e of a s s e s s e e a s h e l d i n l a n dm a r k j u d gm e nt re n d e re d b y th e H o n ’ bl e A p e x C o u rt i n t h e c a s e o f C I T v s . A b hi s a r B u i l dw e l l ( P ) L t d. (2 02 3 ) 1 4 9 t ax m an . c om 3 9 9 ( S C ). C o ns e q u e n t l y, t h e s c op e of a s s e s s m e n t un d e r Se c t i on 1 5 3 A i s re s t r i c te d t o t h e i n c ri m i n a t i n g m a te ri a l f ou n d i n t he c ou r s e of s e a r c h i n t he c a s e o f th e a s s e s s e e . 6. 1 T h e l d. c o u n s e l t he r e a f t e r a d ve r t e d t o pa n c hn a ma d a t e d 1 2. 1 1 . 20 1 4 dr a w n i n t h e c a s e o f t he a s s e s s e e a s pl a c e d in p a ges 1 -7 o f t h e p a p e r bo o k a nd p o i nt e d o u t t ha t t he l i s t o f i n v e n to r i e s fou n d a n d s e i z e d i n t he c ou r s e o f s e a r c h d o n ot m a k e r e f e r e nc e t o a n y d oc u me nt t o i m pl i c a t e t he a s s e s s e e o n bo t h t he im p u gn e d a dd i t i on s c a r r ie d o u t b y t he A O . T he ld . c ou n s e l f u rt h e r re f e r r e d t o t he a s s e s s m e n t o r d e r a nd s ub m i t t e d t h a t t he a s s e s s m e nt o rd e r i t s e l f m a ke s it c l e a r t ha t m a t e ri al w a s p u r p o r t e d l y f ou nd i n t h e c o ur s e o f s e a r c h of o t he r pe r s o n a n d no t i n t he c a s e o f t he a s s e s s e e . 6. 2 O n f a c t s , t h e l d. c o un s e l s ub m i t t e d t h a t t h e a dd it i o n o f R s . 2 0 La k h i s b a s e d o n t he a ll e ga t i on t h a t M r . Y . K . G u pt a h a s re c e i ve d R s . 2 0 La k h I.T.A. No.8644/Del/2019 3 i n c a s h t o w a r ds s a l e of pr o p e r t y no . G -2 6 0, K h u s kh era . Su c h t r a n s a c t i o n w a s s t a t e d t o b e n o t e d i n t h e d oc u m e nt f ou nd f r o m the o f f i c e o f M r. Y . K . G u pt a . T hu s , i n s u c h ba c k dr o p , a va l i d p r o c e e d i n g fo r a dd i t i on c o u ld be i ni t i a t e d i f a n y, pr ob a bl y u n d e r t h e s he l t e r o f S e ct i o n 1 5 3C i n d i s t i nc t i on t o p r e s e nt p r oc e e d in g s u nd e r 15 3A w h i c h i s c o n f i n e d t o t h e do c u me n t s f o u nd a n d s e i z e d f r o m t h e p re m i s e s of t h e a s s e s s e e . Lik e w i s e , a dd i t i o n s of R s . 5 La k h i s a l s o un s u s t a i na b l e i n l a w b e in g o ut s i d e t h e s c op e a n d a m bi t o f S e c t i o n 15 3A i n a n un a b a t e d a s s e s s m e nt o w in g t o a bs e n c e of a ny i n c r im i n a t i n g m a t e r ia l di s c o ve re d d u ri n g t he c ou r s e o f s e a r c h i n t he c a s e o f th e a s s e s s e e . T h e Ld . C ou n s e l c o n t e n de d t hat i n p a r a g r a ph 9 o f t he a s s e s s m e n t o r d e r , t he A O ha s o b s e r v e d t h a t t he a l le ge d u ne x pl a i n e d e xp e nd i t u r e of R s . 5 La kh i s vo uc h e d f ro m t he i n c r im i na t i n g m a t e ri a l f o u nd a n d s e i z e d f r o m t he o f f i c e p re m i s e s o f Su n w o rl d G r o up . Th u s , t he a l le ge d i n c r i mi n a t i n g m a t e ri a l f o u n d f r o m t he p re m is e s of Su nw o r l d G r ou p c a n n ot p ro v i d e b a s i s f or a s s u m p ti o n of p o w e r f or a s s e s s m e nt un d e r Se c t i o n 1 5 3 A e i t h e r. 6. 3 T h e l d. c o un s e l re f e rr e d t o va r i ou s d e c i s i on s by t h e C o - o r d i na t e B e n c h in i d e n t i c a l f a c t s l i s t e d he r e u n d e r: - T r i l o k C h a n d C h o u d h a r y v s . A C I T , I T A N o . 5 8 7 0 / D el / 2 0 1 7 o r d e r d a t e d 2 0 . 0 8 . 2 0 1 9 - A C I T v s . R e a l M a r k e t i n g P . L t d . & O r s , I T ( S S ) A No . 1 2 8 - 1 3 3 / A h d / 2 0 2 1 o r d e r d a t e d 1 9 . 0 5 . 2 0 2 3 - A C I T v s . M o o n B e v e r a g e s L t d . , I T A N o . 1 1 5 t o 1 1 8 /D e l / 2 0 1 8 , o r d e r d a t e d 2 7 t h N o v e m b e r , 2 0 2 0 - D C I T v s . M a p s a T a p e s P . L t d . , I T A N o . 3 5 3 9 / D e l / 2 01 7 o r d e r d a t e d 1 7 . 1 2 . 2 0 2 1 - A C I T v s . A t u l K u m a r G u p t a , I T A N o . 1 9 3 1 / D e l / 2 0 2 0 o r d e r d a t e d 1 7 . 0 2 . 2 0 2 3 7. T h e l d. D R f o r t he R e ve n ue , o n t h e ot h e r h a nd , re l i e d u p o n t he or d e r o f t h e l o w e r a u t ho r i t i e s . 8. W e h a ve pe r us e d t he o r d e rs o f t h e a u t ho r i t i e s b el o w a n d e xa m i n e d I.T.A. No.8644/Del/2019 4 t he m e r i t of l e ga l c on t e nt i o n s ra i s e d o n b e ha l f of t he a s s e s s e e a nd c ou n te r r a i s e d o n b e h a l f o f t h e R e ve nu e . 8. 1 I t i s t he c a s e o f t he a s s e s s e e t ha t i m p u gn e d a ddi t i on s / d i s a l l ow a n c e s c ou l d no t b e m a de i n t he a s s e s s m e n t p r o c e e di n gs f r am e d un de r Se c t i o n 15 3 A of t he A c t d e h o r s re f e re n c e t o a n y i nc r i m i na t i n g m a t e ri a l f o u n d i n t he c o ur s e of s e a rc h i n t h e h a n d s o f t h e a s s e s s e e . I t i s f ur t h e r c a s e of t he a s s e s s e e t ha t ne i t he r p a nc h n a m a d r a w n i n t he ha n ds o f t h e a s s e s s e e n o r t he a s s e s s m e nt o rd e r m a ke s r e f e r e nc e t o a n y i n c ri m in a t i n g m a t e ri a l un e a rt h e d f r o m t h e po s s e s s i on o r c o nt r o l o f t h e a s se s s e e in r e l a t i o n to i m pu gn e d a dd i t i on s . T he f o un da t i o n f o r m a ki n g a dd i ti o n s u n de r Se c t i o n 15 3 A i s t hu s a b s e n t i n th e p re s e n t un a ba t e d a s s e s s me n t a s he l d i n A bh i s a r B u il d w e l l ( s u pr a ). 8. 2 T he a p pe a l of t h e a s s e s s e e t hu s h i n g e s a ro un d a pe r t i ne n t l e ga l p o i nt a s t o w he t h e r, w h i l e m a ki n g a s s e s s m e n t u n de r s e c t ion 15 3A , th e R e ve n ue i s e n t i t le d t o i n t e r f e re w i t h u n a ba t e d a s s e s s m e nt wh i c h s t o od c o n c l u d e d e i th e r un d e r s e c t i o n 1 4 3( 1) o r u n de r s e c t i on 1 43 ( 3 ) a nd n o t p e nd i n g a t t he t i m e of s e a rc h i n t h e a b s e n c e o f a n y i n c ri m i n a ti n g m a t e r i a l u n e a r t h e d a s a r e s ul t o f s e a r c h i n t h e c a s e of a s s e s s e e . 9. A s p o i nt e d ou t o n be h a l f o f t he a s s e s s e e , t h e re i s a t o t a l a b s e n c e o f re f e re n c e t o a n y i nc r i m i na t i n g m a t e r i a l w h ic h m a y ha ve a n y b e a ri n g t o t he i m p u gn e d a d d i ti o n s / d i s a l l o w a n c e s . T h e A s s e s s i n g O f f i c e r h a s r e l i e d on m a te r i a l f ou n d i n a d i f f e r e n t s e a rc h p r oc e e d in g s. T he r e i s n o re b u tt a l f r o m r e ve n ue on th i s pe r t i ne n t a s p e c t . A s a c or o ll ar y, i t i s m a n i f e s t t ha t a dd i t i on s / d i s a ll o w a n c e s h a ve b e e n m a d e w i t ho u t r e f er e n c e t o a n y s p e c i f i c i nc r i m i na t i n g m a t e r i a l / do c um e n t f o un d a s re s ul t of s e a r c h a n d s e i z u re a c ti o n u nd e r Se c t i o n 1 3 2 of t h e A c t a n d s uc h a d d i tio ns a r e s o l e l y ba s e d on c e rt a i n i nf or m a t i on / m a t e r i a l c o l l e c t e d a ga i n s t th e a s s e s s e e i n t he c ou r s e of s e a r c h i n a no t he r c a s e . 10 . G ui d e d b y t he pr i nc i p l e s l a i d do w n i n t he c a s e of A b hi s a r B ui l d w e l l (P . ) Lt d . (S C ) ( s up r a ), a n d vi e w e xp r e s s e d b y C o - o rd i na t e I.T.A. No.8644/Del/2019 5 B e n c h i n c a s e s c i t e d , w e f i n d f o rc e i n t h e l e ga l ple a r a i s e d o n be h a l f of t he a s s e s s e e . H e nc e , i n t h e a bs e nc e o f a n y i n c r i m i na t i n g m a t e r i a l i n a n un a b a t e d a s s e s s m e n t, a d di t i on s / d i s a l l o w a n c e s m a d e by t h e A O i s un s u s t a i na b l e w i t hi n t he r e m i t of s . 1 53 A o f t h e A ct a n d c o ns e q u e nt l y t he a dd i t i on s u nd e r c h a ll e n ge i n t he c a pt i o ne d a pp e a l re q ui r e s t o b e qu a s h e d . In t h i s vi e w o f t he m a t t e r , w e do n o t c o n s i d e r i t ne c e s s a r y t o a dj u d ic a t e ot h e r l e ga l a nd f a c t u a l a s p e c t s c o n c e rn i n g a dd i t i ons / d is a l lo w a n c e s . 11 . I n t h e r e s ul t , t h e c a p t i o ne d a p p e a l of t he a s s es s e e i s a l l o w e d. Order pronounced in the open Court on 13/03/2024 Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13/03/2024 Prabhat/Pramod Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar