M/s. Patliputra International Trading Ltd., Noida V. DCIT, New Delhi

MA 426/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8201 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 25-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB

Judgement Text

1 M.A NO. 425,426,427/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY NEW DELHI SH. R. K. PANDA, ACC OUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER M.A NO. 425/D EL/2018 IN (IT(SS) NO. 06/DEL/2012 ( A.Y 01/04/ 1986 TO 27/06/1996) KANDLA PETRO CHEMICALS CORPORATION LTD. E-10, SECTOR-15 NOIDA PAN : AACK4740L (APPLICANT) VS DCIT CENTRAL CIRCLE-23, NEW DELHI (RESPONDENT) M.A NO. 426/D EL/2018 IN (IT(SS) NO. 04/DEL/2012 ( A.Y 01/04/ 1986 TO 08/07/1996) PATLIPUTRA INTERNATIONAL TRADING LTD. E-10, SECTOR -15 NOIDA PAN : AAACP7221N (APPLICANT) VS DCIT CENTRAL CIRCLE-23, NEW DELHI (RESPONDENT) M.A NO. 427/DE L/2018 IN (IT(SS) NO. 01/DEL/2012 ( A.Y 01/04/ 1986 TO 27/06/1996) ANNIE INVESTMENT AND FIANNCE PVT. LTD. E-10, SECTOR-15 NOIDA PAN : AAACA9913F (APPLICANT) VS DCIT CENTRAL CIRCLE-23, NEW DELHI (RESPONDENT) APPLICANT BY SH. V.K.BINDAL, CA RESPONDENT BY SH. ASHIMA NEB , SR. DR DATE OF HEARING 12.07.2019 DATE OF PRONOUNCEMENT 16.07.2019 2 M.A NO. 425,426,427/DEL/2018 ORDER PER SUCHITRA KAMBLE, JM THESE MISCELLANEOUS APPLICATIONS ARE FILED IN RESPE CT OF ORDER DATED 24/04/2018 U/S 254(2) OF THE INCOME TAX ACT, 1961 . 2. FIRSTLY, WE ARE TAKING UP M.A. NO. 425/DEL/2018 IN IT(SS) NO. 06/DEL/2012. 3. THE LD. AR SUBMITTED THAT GROUNDS NO. 9-11 RAISE D ON MERITS FOR ADDITION MADE ON THE BASIS OF ANNEXURE A-13. THE A SSESSEE RAISED GROUNDS NO. 9-11 CHALLENGING THE ADDITIONS OF RS. 1,49,60,0 00/-, 2,02,695/- AND 10,96,405/- MADE ON THE BASIS OF AN ANNEXURE A-13 C ONTAINING PAPERS SEIZED DURING THE COURSE OF SEARCH IN THE CASE OF M R. ANIL SANGHI ON 01/11/1996. THE LD. AR FURTHER SUBMITTED THAT GROUN D NO. 13 RAISED AS LEGAL GROUND FOR ADDITION MADE ON THE BASIS OF THE SAID ANNEXURE A-13. THE ASSESSEE RAISED AN ADDITIONAL GROUND NO. 13 CHALLEN GING THE ADDITION MADE ON THE BASIS OF THE PAPERS IN THE ANNEXURE A-13 SEI ZED FROM THE RESIDENCE OF MR. ANIL SANGHI DURING THE SEARCH CONDUCTED ON HIM ON 01/11/1996 BUT USED AGAINST THE ASSESSEE WITHOUT RECORDING A MANDA TORY SATISFACTION U/S 158BD OF THE ACT AS THE SEARCH ON THE APPELLANT HAD ALREADY BEEN CONCLUDED ON 27/06/1996 AND THE SAID SEIZED ANNEXURE DID NOT RELATE TO THE INCRIMINATING MATERIAL SEIZED FROM THE ASSESSEE. 4. THE LD. AR SUBMITTED THAT BOTH THE GROUNDS RAISE D ARE TO CHALLENGE THE SAME ADDITION. THUS THE GROUNDS NOS. 9, 10, 11 AND 13 WERE RAISED TO CHALLENGE THE ADDITIONS MADE ON THE BASIS OF THE PA PERS IN THE SAID ANNEXURE A-13, ONE BEING THE GROUND ON LEGAL ISSUE AND OTHER THREE ON MERITS. THE LD. AR SUBMITTED THAT GROUNDS NO. 9-11 HAVE BEEN REMANDED BACK TO THE AO FOR VERIFICATION. SINCE THE ASSESSEE PRODUCED ALL THE RECORDS, EXPLANATION AND DOCUMENTS REGARDING THE ADDITIONS B EFORE THE AO BUT THE AO DID NOT TAKE COGNIZANCE OF THE SAME, THE GROUNDS NO. 9-11 HAVE BEEN REMANDED BACK TO THE FILE OF THE AO FOR VERIFICATIO N VIDE THE ABOVE APPELLATE ORDER OF THE ITAT. THE LD. AR FURTHER SUBMITTED THA T GROUND NO. 13 HAS 3 M.A NO. 425,426,427/DEL/2018 BEEN ALLOWED. THE ADDITIONAL GROUND OF APPEAL NO. 1 3 HAS BEEN ADMITTED BY THE HONBLE BENCH AS THE SAME WAS PURELY LEGAL IN N ATURE (PAGE 16 OF THE ITAT ORDER). THE SAID GROUND HAS ALSO BEEN ALLOWED AS THE SEIZED MATERIAL IN THE SAID ANNEXURE A-13 DID NOT RELATE TO THE MATERI AL SEIZED DURING THE COURSE OF SEARCH IN THE CASE OF THE ASSESSEE AS NOT HING HAS BEEN MENTIONED ABOUT THE SAME IN THE ASSESSMENT ORDER (PARA 31 PAG E 17 OF THE ITAT ORDER). THUS SINCE THE GROUND NO. 13 HAS BEEN ALLOWED, THE GROUNDS NO. 9-11 HAVE TO BE ALLOWED CONSEQUENTIALLY. SINCE ALL THESE FOUR GROUNDS PERTAIN TO THE SAME ADDITION AND ONCE THE GROUND NO. 13 RAISED ON LEGAL ISSUE IS ALLOWED BY THE ITAT HOLDING THAT NO ADDITION CAN BE MADE ON THE BASIS OF THE ALLEGED INCRIMINATING MATERIAL IN THE ANNEXURE A-13 SEIZED DURING THE COURSE OF SEARCH FROM THE RESIDENTIAL PREMISES OF MR. ANIL SA NGHI IN A SEPARATE SEARCH CONDUCTED LATER, THEN THE GROUNDS NO. 9-11 STAND AL LOWED CONSEQUENTIALLY AS THE ADDITIONS OF RS. 1,49,60,000/-, 2,02,695/- AND 10,96,405/- WERE MADE ON THE BASIS OF THE SAID ANNEXURE A-13 ONLY. THUS, THE LD. AR SUBMITTED THAT THIS MISTAKE IS APPARENT FROM RECORD AND THUS, THE SAME SHOULD BE CORRECTED AS CORRIGENDUM AND THE GROUNDS NO. 9-11 S HOULD BE CORRECTED AS ALLOWED INSTEAD OF REMANDING BACK THE SAME TO AO FO R VERIFICATION. 5. THE LD. DR OPPOSED THE MISC. APPLICATION. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. THE FINDING FOR ADDITIONAL GRO UND IS CLEAR AS RELATES TO ANNEXURE A-13, AND AS REGARDS TO GROUNDS NOS. 9 TO 11, 13 THE DETAILED FINDING WAS GIVEN BY US. THERE IS NO NEED TO INTERF ERE WITH THE SAME AS THE SAME IS TAKEN COGNIZANCE AFTER TAKING INTO ACCOUNT THAT THE SEIZED MATERIAL IS NOT BELONGING TO THE ASSESSEE. THE ASSESSEE IS S EEKING REVIEW OF THE ORDER DATED 24.04.2018 WHICH IS NOT PERMISSIBLE. THEREFOR E, THERE IS NO NEED TO RECALL THE ORDER DATED 24.04.2018. THUS MISC. APPLI CATION IS DISMISSED. 7. IN RESULT, M.A. NO. 425/DEL/2018 IN IT(SS) NO. 06/DEL/2012 IS DISMISSED. 8. NOW, WE TAKE UP M.A. 426/DEL/2018 IN IT(SS) NO. 04/DEL/2012. 4 M.A NO. 425,426,427/DEL/2018 9. THE LD. AR SUBMITTED THAT PERUSAL OF THE ORDER, IT IS SEEN THAT THE APPEAL NUMBER OF THE ASSESSEE COMPANY HAS BEEN STAT ED INCORRECTLY AS IT (SS) NO. 6/DEL/2012 INSTEAD OF ITA NO. 4/DEL/2012 A T PAGE NO. 17 PARA 33 OF THE APPELLATE ORDER. 10. THE DR DID NOT OPPOSE THE SAME. 11. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL THE RELEVANT RECORDS. IT IS A MISTAKE APPARENT FROM RECORD. THER EFORE, WE ALLOW TO RECTIFY THE APPEAL NO. BEING IT(SS) NO. 6/DEL/2012 INSTEAD OF ITA NO. 4/DEL/2012. 12. THE LD. AR FURTHER SUBMITTED THAT GROUND NO. 9 RAISED ON MERITS FOR ADDITION MADE ON THE BASIS OF ANNEXURE A-13. THE ASSESSEE RAISED GROUND NO. 9 CHALLENGING THE ADDITION OF RS. 29,78, 000/- MADE ON THE BASIS OF AN ANNEXURE A-13 CONTAINING PAPERS SEIZED DURING THE COURSE OF SEARCH IN THE CASE OF MR. ANIL SANGHI ON 01/11/1996 . THE LD. AR FURTHER SUBMITTED THAT GROUND NO. 11 RAISED AS LEGAL GROUND FOR ADDITION MADE ON THE BASIS OF THE SAID ANNEXURE A-13. THE ASSESSEE RAISED AN ADDITION AL GROUND NO. 11 CHALLENGING THE ADDITION MADE ON THE BASIS OF THE PAPERS IN THE ANNEXURE A-13 SEIZED FROM THE RESIDENCE OF MR. ANIL SANGHI DURING THE COURSE OF SEARCH CONDUCTED ON HIM ON 01/11/1996 BUT USED AGAINST THE ASSESSEE WITHOUT RECORDING A MANDATORY SATISFAC TION U/S 158BD OF THE ACT AS THE SEARCH ON THE APPELLANT HAD ALREADY BEEN CONCLUDED ON 20/09/1996 AND THE SAID SEIZED ANNEXURE DID NOT REL ATE TO THE INCRIMINATING MATERIAL SEIZED FROM THE APPELLANT. 13. THE LD. AR SUBMITTED THAT BOTH THE GROUNDS RAIS ED ARE TO CHALLENGE THE SAME ADDITION. THUS BOTH THE GROUND NOS. 9 AND 11 WERE RAISED TO 5 M.A NO. 425,426,427/DEL/2018 CHALLENGE THE ADDITIONS MADE ON THE BASIS OF THE PA PERS IN THE SAID ANNEXURE A-13, ONE BEING THE GROUND ON LEGAL ISSUE AND ANOTHER ON MERITS. THE LD. AR SUBMITTED THAT GROUND NO. 9 HAS BEEN REMANDED BACK TO THE AO FOR VERIFICATION. SINCE THE ASSESSEE PROD UCED ALL THE RECORDS, EXPLANATION AND DOCUMENTS REGARDING ADDITION OF RS. 29,78,000/- BEFORE THE AO BUT THE AO DID NOT TAKE COGNIZANCE OF THE SA ME, THE GROUND NO. 9 HAS BEEN REMANDED BACK TO THE FILE OF THE AO FOR VE RIFICATION VIDE THE ABOVE APPELLATE ORDER OF THE ITAT. THE LD. AR SUBMI TTED THAT GROUND NO. 11 HAS BEEN ALLOWED. THE ADDITIONAL GROUND OF APPEA L NO. 11 HAS BEEN ADMITTED BY THE BENCH AS THE SAME WAS PURELY LEGAL IN NATURE (PAGE 29 OF THE ITAT ORDER). THE SAID GROUND HAS ALSO BEEN ALLO WED AS THE SEIZED MATERIAL IN THE SAID ANNEXURE A-13 DID NOT RELATE T O THE MATERIAL SEIZED DURING THE COURSE OF SEARCH IN THE CASE OF THE ASSE SSEE AS NOTHING HAS BEEN MENTIONED ABOUT THE SAME IN THE ASSESSMENT ORD ER (PARE 57 PAGE 29 OF THE ITAT ORDER). HOWEVER, WHILE ALLOWING, THE NU MBER OF THE GROUND, THE SAME HAS BEEN INCORRECTLY MENTIONED AS 13 INSTEAD O F 11 ON PAGE 29 PARA 57 OF THE ITAT ORDER WHICH NEEDS TO BE CORRECTED AS A CORRIGENDUM. THUS SINCE THE GROUND NO. 11 HAS BEEN ALLOWED, THE GROUN D NO. 9 HAS TO BE ALLOWED CONSEQUENTIALLY. SINCE BOTH THE GROUNDS PER TAIN TO THE SAME ADDITION AND ONCE THE GROUND NO. 11 RAISED ON LEGAL ISSUE IS ALLOWED BY THE ITAT HOLDING THAT NO ADDITION CAN BE MADE ON TH E BASIS OF THE ALLEGED INCRIMINATING MATERIAL IN THE ANNEXURE A-13 SEIZED DURING THE COURSE OF SEARCH FROM THE RESIDENTIAL PREMISES OF MR. ANIL SA NGHI IN A SEPARATE SEARCH CONDUCTED LATER, THEN THE GROUND NO. 9 STAND S ALLOWED CONSEQUENTIALLY AS THE ADDITION OF RS. 29,78,000/- WAS MADE ON THE BASIS OF THE SAID ANNEXURE A-13 ONLY. THESE MISTAKES ARE APPARENT FROM RECORD AND THUS, THE SAME SHOULD BE CORRECTED AS CORRIGEND UM TO RECTIFY THE FOLLOWING MISTAKES: A) THE APPEAL NUMBER ON PAGE 17 PARA 33 OF THE ORD ER TO BE CORRECTED. 6 M.A NO. 425,426,427/DEL/2018 B) THE GROUND NUMBER OF THE APPEAL IN PARA 57 ON PAG E 29 SHOULD BE CORRECTED. C) THE GROUND NO. 9 SHOULD BE CORRECTED AS ALLOWED INS TEAD OF REMANDING BACK THE SAME TO AO FOR VERIFICATION. 14. THE LD. DR OPPOSED THE MISC. APPLICATION. 15. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE FINDING FOR ADDITIONAL GRO UND IS CLEAR AS RELATES TO ANNEXURE A-13, AND AS REGARDS TO GROUNDS NOS. 9 TO 11, 13 THE DETAILED FINDING WAS GIVEN BY US. THERE IS NO NEED TO INTERF ERE WITH THE SAME AS THE SAME IS TAKEN COGNIZANCE AFTER TAKING INTO ACCOUNT THAT THE SEIZED MATERIAL IS NOT BELONGING TO THE ASSESSEE. THE ASSESSEE IS S EEKING REVIEW OF THE ORDER DATED 24.04.2018 WHICH IS NOT PERMISSIBLE. THEREFOR E, THERE IS NO NEED TO RECALL THE ORDER DATED 24.04.2018. THUS THIS ISSUE AGITATED BY THE LD. AR IN THE MISC. APPLICATION IS DISMISSED. 16. IN RESULT, M.A. NO. 526/DEL/2018 IN IT(SS) NO. 04/DEL/2012 IS PARTLY ALLOWED. 17. NOW, WE ARE TAKING UP M.A. 427/DEL/2018 IN IT( SS) NO. 01/DEL/2012. 18. THE LD. AR SUBMITTED THAT GROUNDS NO. 16-19 RAI SED ON MERITS FOR ADDITION MADE ON THE BASIS OF ANNEXURE A-13. THE ASSESSEE RAISED GROUNDS NO, 16-19 CHALLENGING THE ADDITIONS OF RS. 34,65,00 0/- MADE ON THE BASIS OF AN ANNEXURE A-13 CONTAINING PAPERS SEIZED DURING TH E COURSE OF SEARCH IN THE CASE OF MR. ANIL SANGHI ON 01/11/1996. GROUND N O. 21 RAISED AS LEGAL GROUND FOR ADDITION MADE ON THE BASIS OF THE SAID ANNEXURE A-13. THE ASSESSEE RAISED AN ADDITIONAL GROUND NO. 21 CHALLEN GING THE ADDITION MADE ON THE BASIS OF THE PAPERS IN THE ANNEXURE A-13 SEI ZED FROM THE RESIDENCE OF MR. ANIL SANGHI DURING THE COURSE OF SEARCH CONDUCT ED ON HIM ON 01/11/1996 BUT USED AGAINST THE ASSESSEE WITHOUT RE CORDING A MANDATORY 7 M.A NO. 425,426,427/DEL/2018 SATISFACTION U/S 158BD OF THE ACT AS THE SEARCH ON THE APPELLANT HAD ALREADY BEEN CONCLUDED ON 27/06/1996 AND THE SAID SEIZED ANNEXURE DID NOT RELATE TO THE INCRIMINATING MATERIAL SEIZED FROM TH E APPELLANT. 19. THE LD. AR SUBMITTED THAT BOTH THE GROUNDS RAIS ED ARE TO CHALLENGE THE SAME ADDITION. THUS THE GROUNDS NOS. 16-19 AND 21 WERE RAISED TO CHALLENGE THE ADDITIONS MADE ON THE BASIS OF THE PA PERS IN THE SAID ANNEXURE A-13, ONE BEING THE GROUND ON LEGAL ISSUE AND OTHER THREE ON MERITS. THE LD. AR SUBMITTED THAT GROUNDS NO. 16-19 HAVE BEEN REMANDED BACK TO THE AO FOR VERIFICATION. SINCE THE ASSESSEE PRODUCED ALL THE RECORDS, EXPLANATION AND DOCUMENTS REGARDING THE ADDITIONS B EFORE THE AO BUT THE AO DID NOT TAKE COGNIZANCE OF THE SAME, THE GROUNDS NO. 16-19 HAVE BEEN REMANDED BACK TO THE FILE OF THE AO FOR VERIFICATIO N VIDE THE ABOVE APPELLATE ORDER OF THE ITAT. THE LD. AR SUBMITTED THAT GROUND NO. 21 HAS BEEN ALLOWED. THE ADDITIONAL GROUND OF APPEAL NO. 21 HAS BEEN ADMITTED BY THE BENCH AS THE SAME WAS PURELY LEGAL IN NATURE (PAGE 48 OF THE ITAT ORDER). THE SAID GROUND HAS ALSO BEEN ALLOWED AS THE SEIZED MATERIAL IN THE SAID ANNEXURE A-13 DID NOT RELATE TO THE MATERIAL SEIZED DURING THE COURSE OF SEARCH IN THE CASE OF THE ASSESSEE AS NOTHING HAS B EEN MENTIONED ABOUT THE SAME IN THE ASSESSMENT ORDER (PARA 90 PAGE 48 OF TH E ITAT ORDER). THUS SINCE THE GROUND NO. 21 HAS BEEN ALLOWED, THE GROUN DS NO. 16-19 HAVE TO BE ALLOWED CONSEQUENTIALLY. SINCE ALL THESE FOUR GROUN DS PERTAIN TO THE SAME ADDITION AND ONCE THE GROUND NO. 21 RAISED ON LEGAL ISSUE IS ALLOWED BY THE ITAT HOLDING THAT NO ADDITION CAN BE MADE ON THE BA SIS OF THE ALLEGED INCRIMINATING MATERIAL IN THE ANNEXURE A-13 SEIZED DURING THE COURSE OF SEARCH FROM THE RESIDENTIAL PREMISES OF MR. ANIL SA NGHI IN A SEPARATE SEARCH CONDUCTED LATER, THEN THE GROUNDS NO. 16-19 STAND A LLOWED CONSEQUENTIALLY AS THE ADDITIONS OF RS. 34,65,000/- WERE MADE ON TH E BASIS OF THE SAID ANNEXURE A-13 ONLY. THIS MISTAKE IS APPARENT FROM R ECORD AND THUS, THE 8 M.A NO. 425,426,427/DEL/2018 SAME SHOULD BE CORRECTED AS CORRIGENDUM AND THE GRO UNDS NO. 16-19 SHOULD BE CORRECTED AS ALLOWED INSTEAD OF REMANDING BACK THE SAME TO AO FOR VERIFICATION. 20. THE LD. DR OPPOSED THE MISC. APPLICATION. 21. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE FINDING FOR ADDITIONAL GRO UND IS CLEAR AS RELATES TO ANNEXURE A-13, AND AS REGARDS TO GROUNDS NOS. 9 TO 11, 13 THE DETAILED FINDING WAS GIVEN BY US. THERE IS NO NEED TO INTERF ERE WITH THE SAME AS THE SAME IS TAKEN COGNIZANCE AFTER TAKING INTO ACCOUNT THAT THE SEIZED MATERIAL IS NOT BELONGING TO THE ASSESSEE. THE ASSESSEE IS S EEKING REVIEW OF THE ORDER DATED 24.04.2018 WHICH IS NOT PERMISSIBLE. THEREFOR E, THERE IS NO NEED TO RECALL THE ORDER DATED 24.04.2018. THUS MISC. APPLI CATION IS DISMISSED. 22. IN RESULT, M.A. NO. 427/DEL/2018 IN IT(SS) NO. 01/DEL/2012 IS DISMISSED. 23. IN RESULT, M.A. NO. 425/DEL/2018 IN IT(SS) NO. 06/DEL/2012, M.A. NO. 427/DEL/2018 IN IT(SS) NO. 01/DEL/2012 ARE DISM ISSED AND M.A. NO. 426/DEL/2018 IN IT(SS) NO. 04/DEL/2012 IS PARTLY AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH JULY, 2019 . SD/- SD/- (R.K.PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMB ER DATED: 16/07/2019 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT 9 M.A NO. 425,426,427/DEL/2018 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 12/07/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 12/07/2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK