SRS SUPERB MARKTRADE P.LTD,FARIDABAD V. DCIT, CENTRAL CIRCLE-II, FARIDABAD

ITA 3634/DEL/2018

AI Insights

The case involves M/s SRS Superb Marktrade Pvt. Ltd., which appealed against the order of CIT(A)-2, Gurgaon, concerning the assessment for the year 2008-09 under section 153A(1)(b) read with section 143(3) of the Income Tax Act, 1961. The primary contention was that the assessee was not the subject of a search operation, and thus, the proceedings under section 153A should not have been initiated against them. The Tribunal examined the legal provisions and relevant case law, particularly the decision in MDLR Resources Pvt. Ltd. Vs. CIT, to determine the applicability of section 153A in this context.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31427 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-11-2024
• Assessment Year: 2008-2009
• Appeal Filed On: 14-05-2018
• Other Referred Cases: MDLR Resources Pvt. Ltd. Vs. CIT (2013) 40 taxmann.com 365
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAVED AKHTAR
• Assessee Lawyers: SOMIL AGGARWAL; DEEPESH GARG
• Section: 143(3); 132; 153A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh, Accountant Member ITA No. 3634/Del/2018 : Asstt. Year : 2008-09 M/s SRS Superb Marktrade Pvt. Ltd., [merged with Ms/ BTL Industries Ltd. (later merged with BTL Investment and Securities Ltd, which is now known as M/s BTL Holdings Company Ltd.)], C/o RRA Taxindia, D-28, Sourth Extension, Part-1, New Delhi-110049 Vs DCIT, Central Circle-II, Faridabad (APPELLANT) (RESPONDENT) PAN No. AACCB9666L Assessee by : Sh. Somil Aggarwal, Adv. & Sh. Deepesh Garg, Adv. Revenue by : Mr. Javed Akhtar, CIT-DR Date of Hearing: 20.11.2024 Date of Pronouncement: 26.11.2024 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2008-09, arises against the order of CIT(A)-2, Gurgaon dated 27.02.2018 in Appeal No. 73/CIT(A)-3/GGN/KNL/2015-16 in proceedings u/s 153A(1)(b) r.w.s. 143(3) of the Income Tax Act, 1961 (in short “The Act”). 2. Heard both parties at length. Case files perused. 3. Learned counsel representing assessee’s first and foremost legal ground that both the lower authorities wherein have erred in law and on facts in initiating and completing section 153A assessment despite the fact that it is not the ITA No. 3634/Del/2018 SRS Superb Marktrade Pvt. Ltd. 2 searched party. We are taken to assessee’s Form 35 filed in the lower appellate proceedings taking the very stand which has not been expressly rejected in the CIT(A) impugned discussion. 4. Faced with this situation, learned counsel invited our attention to pages 14 to 19 in assessee’s paper book that even the relevant panchnama drawn by the departmental authorities after concluding search not containing its name. 5. The Revenue’s stand on the other hand is that the impugned section 153A proceedings have been rightly initiated against the assessee since its premises formed subject matter of section 132 search in question. We at this stage take note the relevant statutory provisions itself i.e. section 153A of the Act wherein the legislature has itself incorporated the clinching expression “where a search is initiated”. Hon’ble jurisdictional high court landmark decision MDLR Resources Pvt. Ltd. Vs. CIT (2013) 40 taxmann.com 365 has settled the issue that the same comes into play when the search commences or is undertaken against a person. Meaning thereby that the searched premises itself does not form the relevant factor for the purpose of initiating section 153A proceedings under the provisions of the Act. 6. Coupled with this, the department has failed to produce any search warrant executed in assessee’s name. We, therefore are of the considered view that the assessee’s instant legal ground deserves to succeed since it does not happen to be the “searched” person so to attract the section 153A of the Act. Ordered accordingly. 7. All other pleadings on merit stand rendered academic. ITA No. 3634/Del/2018 SRS Superb Marktrade Pvt. Ltd. 3 8. This assessee’s appeal is allowed in above terms. Order Pronounced in the Open Court on 26/11/2024. Sd/- Sd/- (M. Balaganesh) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 26/11/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "