DCIT, CC-II, Chandigarh V. M/s AKJ Portfolio Pvt. Ltd., Chandigarh

ITA 993/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4979 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 14-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GULSHA RAJ
• Assessee Lawyers: ASHISH CHADHA
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 993/CHD/2017 ASSESSMENT YEAR : 2006-07 THE DCIT, VS. MS. AKJ PORTFOLIO PVT LTD., CENTRAL CIRCLE-II, H.NO.1133, SECTOR 22-B, CHANDIGARH CHANDIGARH PAN NO. AAFCA3127N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GULSHA RAJ, CIT-DR RESPONDENT BY : SH. ASHISH CHADHA DATE OF HEARING : 24.04.2018 DATE OF PRONOUNCEMENT: 24.04.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 31/3/2017 OF THE COMMISSIONER OF IN COME TAX [HEREINAFTER REFERRED TO AS CIT(A)]-3, GURGAON. 2. THOUGH NUMBER OF GROUNDS HAVE BEEN TAKEN BY THE DEPARTMENT IN ITS APPEAL, BUT THE REVENUE IS MAINLY AGGRIEVED BY THE ACTION OF THE CIT(A) IN DELETING THE ADDITION MADE BY THE ASS ESSING OFFICER IN THE ASSESSMENT PROCEEDINGS CARRIED OUT U/S 153A OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') ON THE GROUND THAT N O INCRIMINATING MATERIAL WAS FOUND DURING SEARCH ACTION CARRIED OUT AT THE PREMISES OF THE ASSESSEE ON 26.5.2011 U/S 132 OF THE ACT . ITA NO.993/CHD/2017- SH. AKJ PORTFOLIO P. LTD 2 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ISSUE RAISED IN THIS APPEAL OF THE DEPARTMENT I S COVERED IN FAVOUR OF THE ASSESSEE BY NUMEROUS DECISIONS OF THE HIGH C OURTS. HE, IN THIS RESPECT HAS BROUGHT OUR ATTENTION TO THE COPY OF THE PANCHNAMA TO SAY THAT NO INCRIMINATING MATERIAL WARRANTING AN Y ADDITION WAS FOUND DURING THE SEARCH ACTION. ON THE LAST DATE OF HEARING, THE LD. DR WAS DIRECTE D TO CONFIRM FROM THE ASSESSING OFFICER AS TO WHETHER ANY INCRIM INATING MATERIAL WAS FOUND DURING SEARCH ACTION, TO WHICH THE LD. DR HAS RELIED UPON A LETTER DATED 29.3.2018, WHICH HAS BEEN RECEIVED F ROM THE ASSESSING OFFICER, WHEREIN, IT HAS BEEN CONFIRMED THAT THE A SSESSMENT U/S 153A OF THE ACT IN THIS CASE IS NOT BASED ON ANY INCRIMI NATING DOCUMENTS FOUND DURING THE SURVEY. THE LD. COUNSEL FOR THE AS SESSEE HAS FURTHER INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(A) AND HAS STATED THAT THE LD. CIT(A) HAD DELETED THE ADDITION SO MADE BY THE ASSESSING OFFICER OBSERVING THAT PURSUANT TO THE FI LING OF THE RETURN BY THE ASSESSEE, THE ORIGINAL ASSESSMENT PROCEEDING S ALREADY STOOD CONCLUDED ON THE DATE OF SEARCH AND THAT NO ASSESSM ENT / RE- ASSESSMENT WAS PENDING ON THE DATE OF SEARCH. THE LD. CIT(A) HAS RELIED UPON THE DECISION OF THE COORDINATE BENCH O F THE TRIBUNAL IN THE CASE OF M/S MALA BUILDERS PVT LTD VS. ACIT IT A NOS. 433 TO 437/CHD/2014, WHEREIN THE TRIBUNAL HAS FURTHER RELI ED UPON THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE C ASE OF CIT VS. MURLI AGRO PRODUCTS PVT LTD, (2014) 49 TAXMAN.COM 172 (BOM.), ITA NO.36 OF 2009 AND IN THE CASE OF CIT VS. CONTI NENTAL WAREHOUSING CORPORATION ITA NO. 523 OF 2013 REPORT ED IN (2015) ITA NO.993/CHD/2017- SH. AKJ PORTFOLIO P. LTD 3 279 CTR 0389 (BOMBAY) AND ON THE CASE OF HON'BLE DE LHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA 234 TAX MAN 300 (DELHI) WHEREIN THE HON'BLE HIGH COURTS HAVE BEEN UNANIMOUS TO HOLD THAT IN THE ABSENCE OF ANY INCRIMINATING MATERIAL FOUND DUR ING THE SEARCH ACTION, WHEN THERE WAS NO PENDING ASSESSMENT WHICH CAN BE SAID TO HAVE ABATED ON THE DATE OF SEARCH, THE ADDITIONS CA NNOT BE MADE. WHEN LD. DR WAS CONFRONTED TO THE ABOVE FINDINGS MA DE BY THE LD. CIT(A), THE LD. DR HAS BEEN FAIR ENOUGH TO ADMIT T HAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE SEARCH ACTION AND THAT THE ORIGINAL ASSESSMENT PROCEEDINGS STOOD COMPLETED ON THE DATE OF SEARCH 4. THE ISSUE, THUS, IS SQUARELY COVERED IN FAVOUR O F THE ASSESSEE BY THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA [2016] 380 ITR 573 (DEL) AND FURT HER IN THE CASE SOF PRINCIPAL CIT VS. MEETA GUTGUTIA [2017] 395 I TR 506, HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CONTINENTAL WAREHOUSING CORPORATION [2015] 374 ITR 645 (BOM.), HON'BLE CAL CUTTA HIGH COURT IN THE CASE OF PCIT VS. SALASOR STOCK BROKING LTD 2016 (8) TMI 1131 AND THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF KABUL CHAWLA (SUPRA) HAS ALSO FOLLOWED BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CASE OF PCIT VS. RSA DIGI PRINTS 2017 (9) TMI 530. THE LD. COUNSEL HAS ALSO REFERRED TO VARIOUS DECISIONS OF THE COORDINATE BENCHES OF THE TRIBUNAL ON THIS ISSUE. 5. RESPECTFULLY FOLLOWING THE DECISIONS OF THE HIGH ER COURTS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A ) IN HOLDING THAT IN ITA NO.993/CHD/2017- SH. AKJ PORTFOLIO P. LTD 4 THE CASE OF CONCLUDED ASSESSMENTS, IN THE ABSENCE O F ANY INCRIMINATING MATERIAL FOUND DURING THE SEARCH ACTI ON, THE IMPUGNED ADDITIONS WERE NOT WARRANTED. THE APPEAL OF THE REVENUE IS, THEREFORE, DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 24.04.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR