Shyam Sunder Singh, Hyderabad V. Dy.CIT, Central Circl-7, Hyderabad

ITA 931/HYD/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2631 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-01-2018
• Assessment Year: 2007-2008
• Appeal Filed On: 13-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K GOPALAKRISHNA
• Keywords: Capital asset; Search and seizure; Document seized; Assessment record; Documents seized
• Section: 143(3); 2(14); 132

Judgement Text

ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. APPELLANT RESPONDENT A.Y 921/HYD/2014 T.RANA PRATAP SINGH, HYDERABAD PAN: ADOPR 1301 E DCIT, CENTRAL CIRCLE 7 HYDERABAD 2003-04 922/HYD/2014 -DO- -DO- 2007-08 923/HYD/2014 -DO- -DO- 2008-09 924/HYD/2014 TEJ PRATAP SINGH, HYDERABAD PAN:ABXPT 6791 R -DO- 2003-04 925/HYD/2014 -DO- -DO- 2007-08 926/HYD/2014 -DO- -DO- 2008-09 927/HYD/2014 SHAMSHER SINGH, HYDERABAD PAN: CIJPS 8646 D -DO- 2003-04 928/HYD/2014 -DO- -DO- 2007-08 929/HYD/2014 -DO- -DO- 2008-09 930/HYD/2014 SHYAM SUNDER SINGH, HYDERABAD PAN: BTGPS 2102 F -DO- 2003-04 931/HYD/2014 -DO- -DO- 2007-08 932/HYD/2014 -DO- -DO- 2008 - 09 865/HYD/2014 DCIT CENTRAL CIRCLE -7 HYDERABAD T.RANA PRATAP SINGH & OTHERS (AOP) HYDERABAD 2003 - 04 867/HYD/2014 -DO- -DO- 2007 - 08 868/HYD/2014 -DO- -DO- 2008 - 09 FOR ASSESSEE : SHRI MOHD. AFZAL FOR REVENUE : SHRI K. GOPALA KRISHNA, DR O R D E R PER BENCH. ITA NOS. 921 TO 932/HYD/2014 ARE THE APPEALS FILED BY THE RESPECTIVE ASSESSEES FOR THE A.YS 2003-04, 2007-08 AND 2008-09 RESPECTIVELY AND ITA NOS.865, 867 & 868/HYD /2014 ARE DATE OF HEARING: 18.01. . 2018 DATE OF PRONOUNCEMENT: 2 4 . 0 1 .2018 ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 2 OF 6 THE CROSS APPEALS FILED BY THE REVENUE FOR THE A.YS 2003-04, 2007-08 AND 2008-09 IN THE CASE OF SHRI T.RANA PRAT AP SINGH. 2. THERE WAS A SEARCH AND SEIZURE OPERATION U/S 132 (1) OF THE I.T. ACT IN THE CASE OF ONE SHRI B. RAMDAS G OUD AND D.RAGHUPATHY GOUD AT HYDERABAD ON 15.09.2008. DURIN G THE COURSE OF SEARCH, CERTAIN DOCUMENTS, ALLEGEDLY BELO NGING TO THE ASSESSEE SHRI RANA PRATAP SINGH, AND OTHER MEMBERS OF HIS FAMILY WERE FOUND. IN VIEW OF THE SAME, THE AO ISSU ED NOTICES U/S 153C OF THE ACT ON 23.07.2009 TO THE ASSESSEE AND H IS FAMILY MEMBERS TO FILE THEIR RETURNS OF INCOME. BASED ON T HE DOCUMENTS SEIZED DURING THE COURSE OF SEARCH AT THE PREMISES OF SHRI RAMDAS GOUD, THE ASSESSMENTS WERE COMPLETED IN THE CASE OF THE ASSESSEES. 3. AGGRIEVED BY THE ADDITIONS MADE BY THE AO, THE ASSESSEES PREFERRED APPEALS BEFORE THE CIT (A), WHO PARTLY ALLOWED THE SAME. AGAINST THE CONFIRMATION OF THE CERTAIN A DDITIONS MADE BY THE CIT (A), THE ASSESSEES ARE IN APPEALS BEFORE US, WHILE AGAINST THE PARTIAL RELIEF GRANTED BY THE CIT (A) I N THE CASE OF SHRI RANA PRATAP SINGH, THE REVENUE IS IN CROSS APPEAL B EFORE US. SINCE THE FACTS AND CIRCUMSTANCES IN THE GROUP CASE S ARE THE SAME AND THE GROUNDS OF APPEALS ARISING THEREFROM A RE ALSO THE SAME, WE ARE REFERRING TO THE GROUNDS OF APPEAL RAI SED IN THE APPEAL OF SHRI RANA PRATAP SINGH. THE FOLLOWING ARE THE GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS AGAINST LAW, AND PROBABILITIES OF CASE. ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 3 OF 6 2. THE LEARNED COMMISSIONER OF INCOME TAX ERRED IN HOLDING THAT THE LEARNED ASSESSING OFFICER HAS RIGHTLY INVOKED JURISDICTION U/S 153C INSPITE OF SUBMITTING THAT NO BOOKS OF ACCOUNTS OR DOCUMENTS REFERRED IN SECTION 153C, WERE FOUND/SEIZED BELONGING TO THE ASSESSEE DURING THE COURSE OF SEARCH AT THE PREMISES OF SRI B.RAMDAS GOUD/D.RAGHUPATHY GOUD. 3. THE LEARNED ASSESSING OFFICER ERRED IN HOLDING THAT THE ASSESSMENT HAS BEEN RIGHTLY CARRIED OUT IN THE HANDS OF APPELLANT IN THE CAPACITY OF INDIVIDUAL. 4. THE LEARNED COMMISSIONER OF INCOME TAX ERRED IN HOLDING THAT THE LAND WHICH IS AGRICULTURAL IN NATURE AND SITUATED BEYOND 8 KILOMETERS FROM THE HYDERABAD MUNICIPALITY IS A CAPITAL ASSET AS PROVIDED IN SECTION 2(14) OF THE IT ACT AND FURTHER ERRED IN HOLDING THAT RS.6,66,660/- IS AS A TAXABLE RECEIPT. 4. IN ADDITION TO THE ABOVE, VIDE LETTER DATED 13.0 9.2017, THE ASSESSEE HAS RAISED THE FOLLOWING ADDITIONAL GR OUNDS OF APPEAL ALONG WITH AN APPLICATION FOR ADMISSION OF THE GROU NDS: 1. THE LEARNED CIT (A) OUGHT TO HAVE APPRECIATED THAT SATISFACTION AS ENJOINED IN SECTION 153C OF TH E I.T. ACT, 1961 THAT THE APPELLANT HAD UNDISCLOSED INCOME, ON ACCOUNT OF MATERIAL FOUND IN THE CASE OF SEARCHED PERSON BELONGING TO THE ASSESSEE AND NOT BELONGING TO SEARCHED PERSON, NOT HAVING BEEN RECORDED BY THE AO IN THE CASE OF B. RAMDAS GOUD WHO WAS SUBJECTED TO PROCEEDINGS U/S 132 OF THE I.T. ACT AND THEREFORE, THE ORDER U/S 143(3) R.W.S. 153C IN THE CASE OF APPELLANT FOR THE A.Y 2003-04 I S WITHOUT JURISDICTION AND THEREFORE, WHOLLY UNSUSTAINABLE IN LAW AND FACTS . ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 4 OF 6 5. IN THE APPLICATION, IT IS SUBMITTED THAT FOR INI TIATING THE PROCEEDINGS UNDER SECTION 153C OF THE ACT, THE AO O F THE PERSON SEARCHED HAS TO RECORD A SATISFACTION THAT THE DOCU MENTS FOUND IN THE COURSE OF SEARCH BELONGED TO THE PERSONS OTHER THAN THOSE SEARCHED AND THEREAFTER TRANSFER THE FILE TO THE AO OF THE OTHER PERSONS. IT IS SUBMITTED THAT THE HON'BLE BENCH IN THE CASE OF SHRI T.SUKENDER REDDY VS. DEPARTMENT OF INCOME TAX IN TH EIR ORDER 691 TO 697 /HYD/2015 AND 676 & 677 AND 698 TO 701/HYD/2015, 15.02.2016, HAS EXAMINED WHETHER THER E WAS SUCH A SATISFACTION NOTE BY THE AO OF SHRI RAMDAS G OUD FOR INITIATING 153C PROCEEDINGS IN THE CASE OF SHRI T. SUKHENDER REDDY & OTHERS AND HAS QUASHED THE ASSESSMENT MADE U/S 153C OF THE ACT ON THE GROUND THAT THERE WAS NO SATISFAC TION RECORDED. IN VIEW OF THE SAME, THE ASSESSEE IS NOW SEEKING TO FILE THE ADDITIONAL GROUND OF APPEAL AND SOUGHT ADMISSION OF THE SAME. COPY OF THE ORDER OF THE TRIBUNAL IN THE CASE OF SH RI T. SUKENDER REDDY (CITED SUPRA) IS ALSO FILED BEFORE US. SINCE SIMILAR ISSUE HAS ALREADY BEEN CONSIDERED AND ADJUDICATED BY THE TRIB UNAL IN THE CASE OF THE VERY SAME SEARCH, WE DEEM IT FIT AND PR OPER TO ADMIT THE SAME AND ADJUDICATE THE ISSUE AS UNDER. 6. IN THE CASE OF SHRI T.SUKENDER REDDY (SUPRA), TH E COORDINATE BENCH OF THE TRIBUNAL HAS CONSIDERED THA T THERE WAS A SEARCH AND SEIZURE OPERATION IN THE CASE OF SHRI RA MDAS GOUD AND SHRI D. RAGHUPATHY GOUD ON 15.09.2008 AND AFTER PERUSAL OF THE RECORD AND AFTER RECORDING THE ADMISSION OF THE ITO THAT THE RECORD DOES NOT CONTAIN ANY FORWARDING LETTER FROM THE AO OF SHRI RAMDAS GOUD, RECORDING HIS SATISFACTION AS REQUIRED U/S 153C OF THE ACT BEFORE FORWARDING THE FILE TO THE OFFICER-I N-CHARGE OF SHRI T. ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 5 OF 6 SUKENDER REDDY, HAS QUASHED THE ASSESSMENT. FOR COM ING TO THIS CONCLUSION, THE TRIBUNAL HAS FOLLOWED THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. SH ETTYS PHARMACEUTICALS & BIOLOGICALS LTD (57 TAXMANN.COM 2 82) A.P, WHEREIN THE HON'BLE HIGH COURT RECORDED THAT RECORD ING A SATISFACTION IS A PRE-CONDITION FOR INVOKING THE JU RISDICTION U/S 153C OF THE ACT AND IN THE ABSENCE OF FOLLOWING SUC H PROCEDURES, THE ASSESSMENT U/S 153C DESERVED TO BE QUASHED. 7. IN THE CASE BEFORE US ALSO, WE HAD DIRECTED THE PRODUCTION OF THE ASSESSMENT RECORD AND THE LEARNED DR SUBMITTED THAT SATISFACTION NOTE OF THE AO OF THE P ERSON SEARCHED I.E. SHRI RAMDAS GOUD FOR REMITTING THE FILE TO THE AO OF THE ASSESSEE IS NOT AVAILABLE. SINCE THE FACTS AND CIRC UMSTANCES OF THE CASE BEFORE US ARE EXACTLY THE SAME AND THERE IS NO SATISFACTION RECORDED BY THE AO OF THE PERSON SEARCHED THAT, INC OME RELATING TO SEIZED DOCUMENTS BELONGS TO ASSESSEES HEREIN, WE ARE INCLINED TO QUASH THE ASSESSMENT MADE U/S 153C FOR ALL THE A .YS BEFORE US. THEREFORE, ADDITIONAL GROUNDS OF APPEALS IN ITA NOS. 92 TO 932/HYD/2014 ARE ALLOWED AND THE ASSESSMENTS ARE QU ASHED. THE OTHER GROUNDS ARE NOT ADJUDICATED AS THE ASSESS MENT ITSELF HAS BEEN QUASHED. 8. COMING TO THE REVENUES APPEALS, WE FIND THAT TH E ASSESSMENTS FOR THE A.Y 2003-04, 2007-08 AND 2008-0 9 HAVE BEEN QUASHED BY OUR ORDER EVEN DATED IN ITA NOS.921 TO 923/HYD/2014 IN THE CASE OF SHRI RANA PRATAP SINGH. THEREFORE, ITA N OS 921 TO 932 AND 865 867 AND 868 OF 2014 T RANA PRATAP SINGH AND OTHERS. PAGE 6 OF 6 WHEN THE ASSESSMENTS THEMSELVES ARE QUASHED, THE RE VENUES APPEALS BECOME INFRUCTUOUS AND ARE ACCORDINGLY DISM ISSED. 9. IN THE RESULT, APPEALS FILED BY THE ASSESSEES AR E ALLOWED AND THE APPEALS FILED BY THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH JANUARY, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 24 TH JANUARY 2018. VINODAN/SPS COPY TO: 1 SHRI MOHD. AFZAL, ADVOCATE, 11-5-465 SHERSONS RE SIDENCY, FLAT NO.402, CRIMINAL COURT ROAD, RED HILLS, HYDERABAD 5 00004 2 DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 7, AAYAKAR BHAVAN, HYDERABAD 3 CIT (A)-GUNTUR 4 CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER