PRAKASH CHAND KOTHARI,JAIPUR V. DCIT, CIRCLE-6, JAIPUR, JAIPUR

ITA 999/JPR/2024

AI Insights

This case involves two appeals related to the assessment year 2012-13, concerning the taxpayer Prakash Chand Kothari and the Department of Income Tax. The first appeal (ITA No. 996/JPR/2024) was filed by the Department against the decision of the Learned CIT(A) which set aside the original assessment order. The second appeal (ITA No. 999/JPR/2024) was filed by the assessee, Prakash Chand Kothari, which was later dismissed as not pressed. The core issue revolved around the procedural correctness of the assessment following a search and seizure operation, where it was contended that the assessment should have been conducted under section 153C of the Income Tax Act, not under sections 147/148.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312997 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Other Referred Cases: Shyam Sunder Khandelwal v. ACIT, (2024) 161 taxmann.com 255 (Rajasthan)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM; THROUGH V.C
• Assessee Lawyers: ROHAN SOGANI
• Keywords: Set aside; Search and seizure
• Section: 148; 132

Judgement Text

" vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B-Bench” JAIPUR Jh xxu xks;y] ys[kk lnL; ,o aJh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 996/JPR/2024 fu/kZkj.ko\"kZ@Assessment Year : 2012-13 The DCIT, Circle-6, Jaipur. cuke Vs. Prakash Chand Kothari B-4A, Kothari House, Prithviraj Road, C-Scheme, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABPK2884R vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 999/JPR/2024 fu/kZkj.ko\"kZ@Assessment Year : 2012-13 Prakash Chand Kothari B-4A, Kothari House, Prithviraj Road, C-Scheme, Jaipur. cuke Vs. The DCIT, Circle-6, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABPK2884R vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Rohan Sogani, C.A. jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT-DR (through V.C.) lquokbZ dh rkjh[k@Date of Hearing :29/04/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 30/04/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . This common order is to dispose of the above captioned two appeals. 2 ITA No. 996 & 999/JPR/2024 Prakash Chand Kothari, Jaipur First mentioned appeal - ITA No. 996/JPR/2024 has been filed by the Department and the second mentioned appeal -ITA No. 999/JPR/2024 has been filed by the assessee. In both appeals, challenge is to order dated 30.05.2024, passed by Learned CIT, relating to the assessment year 2012-13. Vide impugned order, Learned CIT has allowed the appeal filed by the assessee and thereby set aside the assessment order. ITA No.999/JPR/2024 2. It may be mentioned here that Ld. AR for the appellant ( in ITA No. 999/JPR/2024) has submitted that this appeal be dismissed as not pressed. We order accordingly. ITA No. 996/JPR/2024 3. As regards ITA No. 996/JPR/2024, filed by the department, Ld. DR for the appellant has only submitted that she stands by the assessment order passed by the Assessing Officer, for the reasons recorded therein. 3 ITA No. 996 & 999/JPR/2024 Prakash Chand Kothari, Jaipur 4. On the other hand, Ld. AR for the assessee has submitted that he stands by the impugned order passed by learned CIT(A) as regards the findings recorded therein, on the basis of judgment dated 19.03.2024 passed by Hon’ble High Court in Shyam Sunder Khandelwal v. ACIT, (2024) 161 taxmann.com 255 (Rajasthan), DB Civil Writ Petition No. 18363 of 2019 and others. 5. In the abovesaid decision, our own Hon’ble High Court quashed the notices issued u/s 148 of the Income Tax Act (hereinafter referred to as the “Act”) as well as consequential assessment orders, due to the reason that where in case of search conducted on a person incriminating material belonging or relating to other person was seized and requisitioned, the Assessing Officer was required to proceed u/s 153C of the Act instead of proceeding under section 147/148 of the Act. 6. Learned CIT(A) went on to observe that as per information received from the office of DCIT, Central Circle-3, Jaipur, search and seizure action under section 132 of the Act was carried out in the case of Ramesh Manihar Group on 7.1.2016; that the group was found indulging in cash loan financing on a large scale; that information was regarding Shri Prakash Chand Kothari, who paid cash loan to various persons during the year under consideration; that the assessee had indulged in lending and 4 ITA No. 996 & 999/JPR/2024 Prakash Chand Kothari, Jaipur borrowing of money to earn interest income; that the assessee was one of the beneficieries. Learned CIT(A) observed that since the additions did not survive on technical ground, notice under section 148 of the Act was not sustainable legally. 7. In view of the decision by our own Hon’ble High Court, which squarely applies to the facts of the appeal, we do not find any illegality or irregularity in the impugned order passed by Learned CIT(A) Result 8. In view of the above discussion, this appeal filed by the department is hereby dismissed. Copy of the common order be placed in the connected appeal file. Files be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 30/04/2025. Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 30/04/2025 5 ITA No. 996 & 999/JPR/2024 Prakash Chand Kothari, Jaipur *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- DCIT, Circle-6, jaipur. 2. izR;FkhZ@ The Respondent- Prakash chand Kothari, Jaipur. 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File ITA No. 996 & 999/JPR/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "