M/S OSWAL FASHION (P) LTD., G.T.ROAD (WEST), JALANDHAR BYE PASS, LUDHIANA V. DCIT CC-1, LUDHIANA

CO 4/CHANDI/2020

AI Insights

The case involves M/s Oswal Fashion (P) Ltd., the appellant, who filed a Cross Objection in response to an appeal by the Revenue for the Assessment Year 2011-12. Initially, the Cross Objection was found to be barred by limitation but was admitted after considering the condonation application. The legal representative for the assessee, during the hearing, realized that the legal principles cited from previous cases (CIT v. Kabul Chawla and PCIT v. Abhisar Buildwell) applied only to concluded assessments and not to the search year in question. Consequently, the assessee sought to withdraw the Cross Objection, acknowledging that the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)) were competent to examine issues arising from the search year and make additions without separately identified incriminating material for that year.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398234 (ITAT-CHANDIGARH)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Other Referred Cases: CIT v. Kabul Chawla, PCIT v. Abhisar Buildwell (P.) Ltd.
• Laws Referred To: CIT v. Kabul Chawla, PCIT v. Abhisar Buildwell (P.) Ltd.
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL; VIRTUAL MODE
• Assessee Lawyers: GAURVA SHARMA; C.A

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM Cross Objection No. 4/Chd/2020 In (आयकर अपील सं./ ITA No. 1020/ Chd/2019 ) िनधाŊरण वषŊ / Assessment Year : 2011-12 M/s Oswal Fashion (P) Ltd. G.T. Road (West) Jalandhar Bye Pass, Ludhiana, Punjab-141001 बनाम The DCIT, Central Circle-I Ludhiana ˕ायी लेखा सं./PAN NO: AAACO2183R अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Gaurva Sharma, C.A राजˢ की ओर से/ Revenue by : Smt. Kusum Bansal, CIT, DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 02/06/2025 उदघोषणा की तारीख/Date of Pronouncement : 04/06/2025 आदेश/Order PER LALIET KUMAR, J.M: The Assessee has filed this Cross Objection in the appeal preferred by the Revenue for the Assessment Year 2011–12. 2. At the outset the Registry has pointed out that the present cross objection is barred by limitation by 09 days. 3. After considering the condonation application filed by the assessee with respect to the delay in filing the Cross Objection, we condone the delay, as sufficient cause has been shown, and admit the Cross Objection for adjudication. 4. During the course of hearing, the Ld. AR appearing on behalf of the assessee submitted that the cross-objection was filed under a mistaken belief 2 that the decisions of the Hon’ble Delhi High Court in the case of CIT v. Kabul Chawla and of the Hon’ble Supreme Court in PCIT v. Abhisar Buildwell (P.) Ltd. were applicable even to the search year. 4.1 Upon further examination of the legal position and facts of the present case, the Ld. AR clarified that the principles laid down in those decisions apply only to concluded assessments and not to the year in which the search itself was conducted. 5. It was further submitted by the Ld. AR that in the search year, the Ld. AO and the CIT(A) are fully competent to examine the issues arising from the search and to make additions, even in the absence of separately identified incriminating material for that year. Accordingly, the Ld. AR submitted that the cross-objection filed by the assessee is not maintainable in law and sought permission to withdraw the same. 6. The Ld. DR appearing on behalf of the Revenue submitted that she has no objection to the withdrawal of the cross-objection by the assessee. However, she requested that the main appeal filed by the Revenue be adjudicated on merits. In rebuttal, the Ld. AR also stated that there is no objection to the Revenue’s appeal being taken up for hearing on merits. 7. We have heard the rival contentions and perused the material available on record. Since the Ld. AR has voluntarily sought withdrawal of the cross-objection filed on behalf of the assessee. and the Ld. DR has also consented to such withdrawal; we find it appropriate to permit the same. 3 8. In view of the above, the Cross Objection filed by the assessee (is dismissed as withdrawn. Order pronounced in the open Court on 04/06/2025. Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "