ACIT-CC-2, Chandigarh V. Shri Subhash Goyal, Parwanoo

ITA 99/CHANDI/2020

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), which had deleted the additions made by the Assessing Officer following a search and seizure operation under section 132 of the Income Tax Act, 1961. The search was conducted at the premises of the assessee, Shri Subash Goyal, and subsequent assessments were framed under section 153A of the Act for several assessment years prior to the search. The CIT(A) found that no incriminating material was found during the search, and thus, no additions could be made to the concluded assessments. The Tribunal, referencing various judicial decisions, upheld the CIT(A)'s decision, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 113095 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-10-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2020
• Other Referred Cases: All Cargo Global Logistics Ltd. vs. CIT, CIT vs. Kabul Chawla, Principal CIT vs. Meeta Gutgutia Prop M/s Ferns 'N' Petals, CIT (Central), Kanpur vs. Sri Raj Kumar Arora, CIT vs. Continental Warehousing Corporation, PCIT vs. RSADigi Prints, PCIT vs. Salasar Stock Broking Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 132; 13; 153

Judgement Text

I N TH E IN C O ME TA X A P PEL LA TE TR I BU N A L “B ” B EN C H C H A N D IG A R H Bef or e S h ri S an ja y Ga rg, Ju d i ci a l M e mb e r & S h ri V ik r a m S i n gh Y a d a v, A c c ou n tan t M e mb e r I. T . A . N o. 99 /C H A N D I / 202 0 A s s e ss me nt Y e a r: 20 10 -1 1 Th e A C I T, C en t ra l C i rc l e- 2, C h an d i gar h ... ... ... . . . . . . . . . . . . . . . . ... ... . . . . . . . . . . . . ... . . ... ... ... ... ... ... ... A p p el l an t vs . S h ri S u b as h Goy al P lo t N o. 29, S ec to r - 1, P ar w a n o o, C h a n d iga rh . [P A N :A D I P G7 4 03 J ] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . ... . . .. .. . . . . . . .. ... ... . R e sp o n d e n t A p p ear an c e s b y : S hr i S a ra bj e e t S i n g h , CI T, D R, ap pe ar ed o n b e h al f of t h e a pp e l la nt . S hr i T . N . S i ngl a, CA , ap pe ar ed o n b e h al f o f t he R e spo n d e nt . D at e o f c onc l u di ng t he h ea ri n g : O cto b e r 2 7, 202 2 D at e o f p r o no u nc in g th e o r d e r : D e ce m b er 3 0, 2 02 2 O R D E R P er S an jay G a r g, Ju d ic i a l Me mb er : T he pr es e n t a pp e a l ha s b ee n pr e fe rr e d by t he Re v e n ue a ga i ns t t h e or d e r d a t ed 2 0. 11 . 20 19 o f t h e C o m m is s i on er o f In c o me T a x (A pp ea l s ), G urg a o n [ h e re i n a ft e r r e f er r e d t o as ‘C I T ( A ) ’ ] pa s s ed u / s 15 3A (1) (b )/ 14 3( 3) o f t h e Inc o me Ta x A c t , 196 1 (h e r ei n a f te r re fe rre d to a s t he ‘A c t ’) . 2. T he R e ve nu e is a ggri e ve d by t he a c t i o n of t he C IT (A ) in d el e t i n g t he a dd i t io n s ma de by t he A O in t he as s es s me nt fr a m e d u/s 1 4 3( 3 ) r ea d w i th S e ct i on 1 53 A o f t h e A c t. I.T.A. No.99/CHANDI/2020 Assessment Year: 2010-11 Shri Subash Goyal 2 3. T he bri e f f ac t s o f t h e c a s e ar e t h a t a s ea r c h a nd s ei z u re w a s c on du ct e d a t t h e pr e mi se s o f t he as s e s s ee u/ s 13 2 of t h e A c t . Th er e a ft e r t he a s s e ss me nt w a s fr a me d fo r s i x as s ess me n t ye a rs pri or t o t h e da t e o f s e ar c h u/ s 153 A of th e A c t . The L d. CI T( A ) de l e t e d t he a dd i t i o n vi d e c o mm o n or d er d a t e d 20. 1 1 . 2 0 19 pa s s e d i n a s s es s e e’ s a p p ea l re l a t i ng t o a s s es s men t y e a rs 2 0 10- 11, 20 11 -1 2, 20 1 3- 14 a n d 2 014- 1 5 on t he g r o un d t ha t no i nc r i m i na t i ng ma t er i a l w as fo u n d du r in g t he s e a r ch a c t i on a n d t ha t a s pe r th e s et t l e d l a w i n th e c a s e o f c o mp le t e d a sse s s me nt ( n ot a ba t e d) o n t he da te o f s e ar c h , i n th e a bs e nc e of a n y in c r i m i n at i n g m a te ri a l f o un d du r i n g t he s e ar ch a c ti on , n o a d di t i ons ca n be ma d e i n a n as s e s s me nt fr a m e d u/ s 1 5 3A of t he A ct o f A c t . T he L d. CI T( A ) i n t hi s re s pe ct h a s re l ie d on t he va r i ou s j udi c i a l d ec is i on s i nc l u d i n g th e de ci s i o n o f t he H on' bl e Bo m b a y H i gh C o u rt in t he c a s e o f “ A ll Ca r go G l oba l L o gi s ti c s L td . ” 1 20 D T R 89 a nd o f t h e D el hi H ig h C ou r t i n t he c a s e o f “ CI T V s. K ab ul C h aw l a ” 2 34 Ta x ma n 30 0 ( D el hi ) an d i n “P r in ci p a l CIT V s . M e et a G ut g ut i a P ro p M / s F er ns ‘N ’ P e ta l s ”, IT A 30 6 / 2 01 7 an d o t h e r s d ec i de d vi d e or d e r d at e d 2 5 . 5. 20 17. 4. T he l d . D R h as b ee n fai r e no ug h t o a d m it t h a t the a dd i t io ns i n t h i s c as e h a ve n o t be en ma d e o n t h e ba s i s o f a n y i nc r i min a t i n g m at e ri al f o un d du r i n g t he s e a r c h a c t i o n a t t h e p re mi s es o f t he a s ses s e e . H e ha s al s o n ot di s pu t e d t ha t t he ori gi na l as s e ss me n t s for th e a s s essme nt ye a r un d er c ons i de ra ti o n s t o od co mpl e t e d a n d no t ab a t e d a s o n t he d a t e o f s ea rc h i. e . I.T.A. No.99/CHANDI/2020 Assessment Year: 2010-11 Shri Subash Goyal 3 10 . 0 8. 2 00 6 a n d al s o on th e da te o f su bs e qu e n t i s s ue of n o ti c e u/ s 15 3A of t he A ct . H ow e ve r , he ha s r e l i ed o n t h e d ec is i o n o f t h e H o n 'b l e A ll a h a b ad H i gh C ou r t i n t he c a s e o f ‘C IT ( Ce n t r a l) , K a npu r V s. S ri Ra j K u m ar A r o ra , I. T . A ppe al N o. 5 6 o f 20 1 1 v i de o r de r d a t ed 11. 0 7 . 20 14, w h er e i n, t he H on' bl e H i g h C ou rt ha s h el d t ha t i t i s ope n t o t he A O to a s s es s / re as s e ss t he i nc o me o f th e as s e s s ee u /s 153 A of t he A c t e v e n be re ft o f a ny i nc ri mi na ti ng m at e r i al . 5. We h a v e he a r d t h e ri va l s ub m i ss i on s a nd p er us e d t he ma t e r i a l on re c or d. We fi n d t h a t t h e i s s ue is s qua r e l y co v er ed i n fa v o u r o f t h e a s s es s e e by t h e d e c i s io n o f th e H on ' b l e D el h i H i gh Co u rt i n t he c a s e of C I T V s K ab ul Ch a w l a (2 0 1 6) 3 80 IT R 57 3 (D el ) fo l lo w e d b y th e H on' b l e G uj ra t H i gh C ou r t i n t he c a s e o f P C I T V s RS A D i gi P r in ts 20 1 7 (9 ) TM I 5 3 0. Re l ia nc e i n t hi s r es pe c t c an a l s o b e p la c ed up on dec is i o n o f H o n' bl e Bo m b a y H i g h Co u rt i n t h e c a s e o f CI T V s Co nt in e nt a l Wa re ho u si n g Co r p or a t i on ( 2 0 15 ) 3 74 I T R 6 4 5 ( Bo m . ), de ci s i o n o f H o n ' bl e C al c u t t a H i gh Co u rt i n t h e ca s e o f P C I T V s S al a s or S t oc k B ro k i n g L t d. 2016 ( 8) T M I 11 31 a nd de c is i o n o f H on ' b l e D el h i H ig h C ou rt in t he c as e o f ‘ P ri nc i pa l CI T V s. M ee t a G ut gu t i a P rop M / s F e rn s ‘ N ’ P e t al s ”, IT A 3 06/ 2 01 7 a nd ot h e rs de c id e d v i d e or d er da te d 25 . 5 . 2 01 7 w he r e i n th e H on ' bl e H i g h C o u rt s h a ve b ee n u n ani mo us t o h o l d t h a t in r e l at i o n t o t h e as s e s s me nt s w hi ch ha v e a l re ad y b ee n co nc l u d e d, t he A O is pre c lu de d fr o m m a k i ng a dd i t io n s on a ny ot h er i s s ue e xc ep t re l a t in g o r c onc e r ni ng t o t he I.T.A. No.99/CHANDI/2020 Assessment Year: 2010-11 Shri Subash Goyal 4 i nc ri mi na ti ng ma t e r ia l fo un d du r i n g t he s e ar ch a c t io n. T he A s s e ssi ng O ff ic er ca nn o t di s t urb t h e as s e s s me n t orde r o r re ass e s sme nt or de r w hi c h ha s at t ai ne d fi na l it y, u nl e s s th e ma t e r i a l g at he r e d i n th e c o ur s e o f pr o c e e d i n gs u/ s 15 3A of t he A c t e s t abl i s h e s th at rel ie f g ra nt ed u n de r t h e fi n a l a s s es s m en t/ re as s e s s me n t w a s c o nt r a r y t o th e fa c t u ne a r t h e d d ur i n g t he c ou rs e o f 15 3 A p ro c e e d i n gs . T h e p r o p o s i t i o n l a i d d o w n i n a f o r e s a i d c a s e l a w s ca n b e w e l l a p p l i e d t o t h e p r e s e n t c a s e . I n v i e w o f t h i s , w e d o n o t f i n d a n y j u s t i f i c a t i o n o n t h e p a r t o f t h e A s s e s s i n g O f f i c e r f o r m a k i n g t h e i m p u g n e d a d d i t i o n i n t h e a l r e a d y c o n c l u d e d a s s e s s m en t s i n t h e c a s e o f t h e a s s e s s e e . T h e r e f o r e , t h e i m p u g n e d a d d i t i o n s a r e o r d e r e d t o b e d e l e t e d . In t he re s u l t, t he a pp e a l o f t he R ev e n u e s t an ds di s mi s s ed . Chandigarh, the 30 th December, 2022. Sd./- Sd/- [Shri Vikram Singh Yadav] [Sanjay Garg] Accountant Member Judicial Member Dated: 30.12.2022. Rs. / rkk Copy of the order forwarded to: 1. ACIT, Central Circle-2, Chandigarh 2. Shri Subash Goyal 3. CIT(A)- 4. CIT- , 5. CIT(DR), ITAT, Chandigarh I.T.A. No.99/CHANDI/2020 Assessment Year: 2010-11 Shri Subash Goyal 5 //True copy// By order Assistant Registrar