Atul Agarwal, Aligarh v. DCIT, Central Circle, Dehradun

ITA 1905/DEL/2018 | 2013-2014
Pronouncement Date: 02-03-2021 | Result: Allowed

Appeal Details

RSA Number 190520114 RSA 2018
Assessee PAN ACRPA6924E
Bench Delhi
Appeal Number ITA 1905/DEL/2018
Duration Of Justice 2 year(s) 11 month(s) 12 day(s)
Appellant Atul Agarwal, Aligarh
Respondent DCIT, Central Circle, Dehradun
Appeal Type Income Tax Appeal
Pronouncement Date 02-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 02-03-2021
Assessment Year 2013-2014
Appeal Filed On 19-03-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SHRI AMIT SHUKLA JUDICIAL MEMBER AND SHRI O.P. KANT ACCOUNTANT MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.1902/DEL./2018 ASSESSMENT YEAR: 2009-10 AND ITA NO.1903/DEL./2018 ASSESSMENT YEAR: 2011-12 AND ITA NO.1904/DEL./2018 ASSESSMENT YEAR: 2012-13 AND ITA NO.1905/DEL./2018 ASSESSMENT YEAR: 2013-14 SHRI ATUL AGARWAL 1059 GALI TABELA HATHRAS ALIGARH VS. DCIT CENTRAL CIRCLE DEHRADUN PAN : ACRPA6924E (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT AM: THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST COMMON ORDER DATED 25 TH JANUARY 2018 PASSED BY THE LEARNED CIT(A)-IV APPELLANT BY NONE RESPONDENT BY SHRI SATPAL GULATI CIT(DR) DATE OF HEARING 22.02.2021 DATE OF PRONOUNCEMENT 02.03.2021 2 ITA NOS.1902 TO 1905/DEL./2018 KANPUR [IN SHORT THE LEARNED CIT(A)] FOR ASSESSMEN T YEARS 2009- 10 2011-12 2012-13 & 2013-14 RESPECTIVELY. AS COM MON ISSUES ARE INVOLVED IN THESE APPEALS SAME WERE HEARD TOG ETHER AND DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. SINCE IDENTICAL GROUNDS HAVE BEEN RAISED IN ALL THE APPEALS EXCEPT CHANGE OF AMOUNT FOR THE SAKE OF BREVITY G ROUNDS OF APPEAL RAISED FOR ASSESSMENT YEAR 2009-10 ARE REPRO DUCED AS UNDER: 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS GROSSLY ERRED BOTH IN LAW AND ON FACTS IN SUSTAININ G AN ASSESSMENT MADE UNDER SECTION 153A/143(3) OF THE AC T AT AN INCOME OF RS. 16 75 300/ AS AGAINST RETURNED INCO ME OF RS. 9 25 300/-. 2. THAT LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) HAS GROSSLY ERRED BOTH IN LAW AND ON FACTS IN SUSTAINING THE IN ITIATION OF PROCEEDINGS UNDER SECTION 153A OF THE ACT WHICH WAS WITHOUT SATISFYING THE STATUTORY PRECONDITIONS ENVISAGED UN DER THE ACT PERSON AND THUS THE PROCEEDINGS INITIATED UNDER SE CTION 153A OF THE ACT SHOULD HAVE BEEN QUASHED AS SUCH. 2.1 THAT FURTHER THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IGNORED THE BASIC FACT THAT ADDITIONS MADE BY LEARN ED ASSESSING OFFICER DURING THE IMPUGNED ASSESSMENT YEAR WERE BE YOND THE SCOPE OF PROCEEDINGS INITIATED UNDER SECTION 153A O F THE ACT AND THUS THE ADDITION SO MADE WERE LIABLE TO BE DELETE D AS SUCH. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN SUSTAINING ADD ITION OF RS. 7 50 000/- ON ACCOUNT OF DISALLOWANCE UNDER SECTION 40A(3) OF THE ACT. 3.1 THAT IN DOING SO THE LEARNED CIT (A) HAS FAILE D TO APPRECIATE THE FACT THAT PAYMENT OF RS 7 50 000/- WAS COVERED B Y THE EXCEPTIONS AS ENVISAGED UNDER RULE 6DD OF I.T. RULE S AND WAS MADE DURING THE REGULAR BUSINESS OF ASSESSEE - APPE LLANT AND AS SUCH THE ADDITION SO SUSTAINED NEEDED TO BE DELETE D. 3.2 THAT THE ADVERSE FINDINGS RECORDED BY THE LEARN ED CIT (A) ARE PERVERSE AND HAVE BEEN RECORDED WITH PRECONCEIVED N OTIONS AND WITHOUT CONSIDERING THE SUBMISSIONS/EVIDENCES/MATER IAL 3 ITA NOS.1902 TO 1905/DEL./2018 PRODUCED ON RECORD AND HENCE SUCH FINDINGS ARE VITI ATED AND THE DISALLOWANCE SO SUSTAINED NEEDS TO BE DELETED AS S UCH. 4. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) HAS ERRED IN LAW AND ON FACTS IN SUSTAINING ADDITIONS IN THE HANDS OF ASSESSEE COMPANY WITHOUT GIVING ANY FAIR AND PROPE R OPPORTUNITY OF BEING HEARD TO THE APPELLANT COMPANY THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT IN THE CA SE OF THE ASSESSEE A SEARCH AND SEIZURE OPERATION WAS CARRIE D OUT ON 31.10.2014 AND CONSEQUENTLY NOTICE UNDER SECTION 1 53A OF THE INCOME-TAX ACT 1961 (IN SHORT THE ACT). IN RESPO NSE THE ASSESSEE FILED RETURN OF INCOME DECLARING INCOME O F RS. 9 25 300/- RS. 8 28 770/- RS. 6 55 650/- AND RS. 3 99 960/- FOR ASSESSMENT YEARS 2009-10 2011-12 2012-13 AND 2013-14 RESPECTIVELY. THE ASSESSMENTS IN THESE CASES WERE C OMPLETED AFTER MAKING DISALLOWANCE OF EXPENSES UNDER SECTION 40A(3 ) OF THE ACT OF RS.7 50 000/- RS. 2 30 000/- RS. 10 80 000/- A ND RS. 8 00 000/- FOR ASSESSMENT YEARS 2009-10 2011-12 2 012-13 AND 2013-14 RESPECTIVELY. 2.1 BEFORE THE LEARNED CIT(A) THE ASSESSEE CHALLENGED THE VALIDITY OF THE ADDITIONS MADE UNDER SECTION 153A O F THE ACT AS WELL AS MERITS OF THE ADDITIONS. THE LEARNED CIT(A) REJECTED THE ARGUMENTS OF THE ASSESSEE AND HELD THAT THE ADDITIO NS WERE MADE VALIDLY UNDER SECTION 153A OF THE ACT AND ALSO UPHE LD THE MERIT OF THE ADDITIONS. 2.2 BEING AGGRIEVED THE ASSESSEE IS BEFORE THE TRIBUN AL RAISING THE GROUNDS AS REPRODUCED ABOVE. 3. BEFORE US NONE APPEARED ON BEHALF OF THE ASSESSEE. 4 ITA NOS.1902 TO 1905/DEL./2018 4. ON THE OTHER HAND LEARNED DR APPEARED THROUGH VID EO CONFERENCING FACILITY AND RELIED ON THE ORDERS OF T HE LOWER AUTHORITIES. 5. WE HAVE HEARD THE SUBMISSION OF LEARNED DR AND PER USED THE RELEVANT MATERIAL AVAILABLE ON RECORD INCLUDIN G THE IMPUGNED ORDER OF THE LOWER AUTHORITIES. WE FIND THAT IN THE SES APPEALS MAINLY FOLLOWING TWO ISSUES ARE INVOLVED:- (I) WHETHER THE ADDITION CAN BE MADE IN 153A PROCEE DINGS IN ABSENCE OF INCRIMINATING MATERIAL WHERE ASSESSM ENTS ARE ALREADY COMPLETED? (II) WHETHER THE PAYMENTS IN CASH MADE BY THE ASSES SEE FOR PURCHASE OF THE PLOT CAN BE ALLOWED UNDER SECTION 40A(3) R.W.R. 6DD OF THE INCOME-TAX RULES 1962 (IN S HORT THE RULES). 5.1 ON PERUSAL OF THE ORDER OF THE LOWER AUTHORITIES W E FIND THAT THE ADDITIONS HAVE BEEN MADE WITHOUT REFERENCE OF A NY INCRIMINATING MATERIAL. BEFORE THE LEARNED CIT(A) THE ASSESSEE CITED THE DECISIONS OF THE CIT VS. KABUL CHAWLA REP ORTED IN 380 ITR 573. ON PERUSAL OF THE RECORD WE FIND THAT ALL THE ASSESSMENTS IN ALL THE YEARS WERE COMPLETED BEFORE THE DATE OF SEARCH AND SEIZURE AND NO NOTICE UNDER SECTION 143( 2) OF THE ACT WAS ISSUED PRIOR TO THE DATE OF THE SEARCH. AS THE SEARCH IN THE CASE OF THE ASSESSEE CONDUCTED ON 31 ST OCTOBER 2014 THE LIMITATION FOR ISSUE OF NOTICE UNDER SECTION 143(2) OF THE ACT FOR THE ASSESSMENT YEAR 2013-14 EXPIRED ON OR BEFORE TH E 30 TH SEPTEMBER 2014. AS NO NOTICE UNDER SECTION 143(2) OF THE ACT HAS BEEN ISSUED FOR THE ASSESSMENT YEAR 2013-14 TH E ASSESSMENT IS TREATED AS COMPLETED. AS IN ALL THE A SSESSMENT YEARS THE ASSESSMENTS ARE UNABATED AND NO ADDITION S HAVE BEEN 5 ITA NOS.1902 TO 1905/DEL./2018 MADE BASED ON THE INCRIMINATING MATERIAL THEREFORE IN VIEW OF THE DECISIONS OF THE HONBLE DELHI COURT IN THE CAS E OF KABUL CHAWLA (SUPRA) NO ADDITIONS COULD HAVE BEEN MADE. ACCORDINGLY THE LEGAL GROUNDS RAISED IN ALL THE FOUR APPEALS AR E ALLOWED. AS WE HAVE ALREADY HELD THAT THE ASSESSING OFFICER WAS NOT HAVING JURISDICTION TO MAKE ADDITION OTHER THAN BASED ON INCRIMINATING MATERIAL THE ISSUE OF MERIT OF ADDITION IS RENDERE D ACADEMIC AND CORRESPONDINGLY THE GROUNDS ARE DISMISSED AS INFRU CTUOUS. 6. IN RESULT ALL THE FOUR APPEALS OF THE ASSESSEE AR E ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND MARCH 2021 SD/- SD/- (AMIT SHUKLA) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 ND MARCH 2021. RK/- (DTDS) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT NEW DELHI