M/s. R.L. Allied Industries, New Delhi v. ITO, New Delhi

ITA 4814/DEL/2012 | 2001-2002
Pronouncement Date: 28-11-2014 | Result: Allowed

Appeal Details

RSA Number 481420114 RSA 2012
Assessee PAN AAAFR5507P
Bench Delhi
Appeal Number ITA 4814/DEL/2012
Duration Of Justice 2 year(s) 2 month(s) 18 day(s)
Appellant M/s. R.L. Allied Industries, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 28-11-2014
Date Of Final Hearing 10-11-2014
Next Hearing Date 10-11-2014
Assessment Year 2001-2002
Appeal Filed On 10-09-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE BEFORE SHRI G.D. AGRAWAL VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO S SS S . .. . 567/DEL/2011 & 568/DEL/2011 567/DEL/2011 & 568/DEL/2011 567/DEL/2011 & 568/DEL/2011 567/DEL/2011 & 568/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2001 2001 2001 2001 - -- - 02 & 2002 02 & 2002 02 & 2002 02 & 2002 - -- - 03 0303 03 M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES 50 5050 50- -- -F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD KAMLA NAGAR KAMLA NAGAR KAMLA NAGAR KAMLA NAGAR DELHI DELHI DELHI DELHI 110 007. 110 007. 110 007. 110 007. PAN : AAAFR5507P. PAN : AAAFR5507P. PAN : AAAFR5507P. PAN : AAAFR5507P. VS. VS. VS. VS. INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -20(1) 20(1) 20(1) 20(1) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO S.4812/DEL/2012 TO 4816/DEL/2012 S.4812/DEL/2012 TO 4816/DEL/2012 S.4812/DEL/2012 TO 4816/DEL/2012 S.4812/DEL/2012 TO 4816/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2000 2000 2000 2000 - -- - 01 2001 01 2001 01 2001 01 2001 - -- - 02 2001 02 2001 02 2001 02 2001 - -- - 02 2002 02 2002 02 2002 02 2002 - -- - 03 & 2002 03 & 2002 03 & 2002 03 & 2002 - -- - 03 0303 03 M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES M/S R.L. ALLIED INDUSTRIES 50 5050 50- -- -F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD KAMLA NAGAR KAMLA NAGAR KAMLA NAGAR KAMLA NAGAR DELHI DELHI DELHI DELHI 110 007. 110 007. 110 007. 110 007. PAN : AAAFR5507P. PAN : AAAFR5507P. PAN : AAAFR5507P. PAN : AAAFR5507P. VS. VS. VS. VS. INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -20(1) 20(1) 20(1) 20(1) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.R. MANJANI ADVOCATE. RESPONDENT BY : S HRI M.B. REDDY CIT - DR. ORDER ORDER ORDER ORDER PER BENCH PER BENCH PER BENCH PER BENCH : :: : ITA NOS.567/DEL/2011 & 568/DEL/2011 : ITA NOS.567/DEL/2011 & 568/DEL/2011 : ITA NOS.567/DEL/2011 & 568/DEL/2011 : ITA NOS.567/DEL/2011 & 568/DEL/2011 :- -- - THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXII NEW DELHI DATED 18 TH NOVEMBER 2010 FOR THE AY 2001-02 & 2002-03. 2. GROUND NO.1 OF THE ASSESSEES APPEALS IN BOTH TH E YEARS READS AS UNDER:- THE LD A.O. AS WELL AS CIT(A) HAVE ERRED IN NOT DECLARING THE ASSESSMENT BARRED BY LIMITATION THE ITA-567/D/2011 & OTHERS 2 SEARCH HAVING BEEN CONDUCTED IN 13 TH DEC 05 AND ASSESSMENT HAVING BEEN COMPLETED IN DEC 07 THE LD A.O. HAD CORRECTLY REQUESTED IN 1 ST WEEK OF FEB 08 TO THE A.O. HAVING JURISDICTION OVER M/S R.L. INDUSTRI ES FOR TAKING THE RECORDS WHICH CONSISTED IN ONLY 4 FILES. EVEN A.O.S ADDL. COMMISSIONER WROTE TO HIM ON 4 TH MARCH 08 TO TAKE THE RECORD AND NECESSARY ACTION BUT NO ACTION WAS TAKEN TILL MARCH 09 WITHOUT INDICATING THE REASON FOR NOT TAKING THE ACTION FOR MORE THAN ONE YEAR INSPITE OF THE FACTS THAT LIMITATION IS INVOLVED. SINCE INTIMATION FOR TAKING RECORD WAS RECEIVED IN FEB 0 8 LIMITATION FOR COMPLETION FOR 153C PROCEEDING WAS D EC 08. THEREFORE BOTH THE AUTHORITIES ERRED ON FACTS AS WELL AS IN LAW IN NOT DECLARING THE ASSESSMENT BARR ED BY LIMITATION. 3. THE FACTS OF THE CASE ARE THAT ASSESSMENT FOR AY 2001-02 AND 2002-03 WHICH IS UNDER CONSIDERATION HAS BEEN COM PLETED UNDER SECTION 143(3) READ WITH SECTION 153C OF THE INCOME -TAX ACT 1961. AS PER ASSESSMENT ORDER THE SEARCH AND SEIZURE ACTION UNDER SECTION 132 WAS CARRIED OUT ON R.L. GROUP ON 13 TH DECEMBER 2005. DURING THE COURSE OF SUCH SEARCH VARIOUS DOCUMENTS WERE FOUND AND SEIZED OUT OF WHICH CERTAIN DOCUMENTS ARE CLAIMED TO BE BELONG ING TO M/S R.L. ALLIED INDUSTRIES I.E. THE ASSESSEE. AS PER PARAG RAPH 2 OF THE ASSESSMENT ORDER THE SEIZED MATERIAL PERTAINING TO THE ASSESSEE WAS RECEIVED ON 12 TH MARCH 2009 FROM ACIT CIRCLE-17 ACCORDINGLY NOT ICE UNDER SECTION 153C WAS ISSUED AND SERVED UPON THE A SSESSEE ON 24 TH MARCH 2009. THE LEARNED COUNSEL FOR THE ASSESSEE HAS CLAIMED THAT AS PER SECTION 153C PROVISO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS IS DEEMED TO BE THE DATE OF SEARCH UND ER SECTION 153A. HE ALSO REFERRED TO SECTION 153A AND POINTED OUT TH AT THE NOTICE CAN BE ISSUED UNDER SECTION 153C FOR SIX YEARS PRECEDIN G TO THE YEAR OF SEARCH. HE THEREFORE SUBMITTED THAT AS PER THE P ROVISO TO SECTION 153C THE DATE OF RECEIVING THE BOOKS OF ACCOUNT WO ULD BE THE DATE OF SEARCH AND THEREFORE THE NOTICE UNDER SECTION 153 C COULD NOT HAVE BEEN ISSUED FOR AY 2001-02 AND 2002-03. ACCORDINGL Y THE ISSUE OF ITA-567/D/2011 & OTHERS 3 NOTICE UNDER SECTION 153C WAS BARRED BY LIMITATION AND CONSEQUENTLY THE ASSESSMENT FOR THESE TWO YEARS IS NON-EST AND VOID AB-INITIO . 4. LEARNED DR ON THE OTHER HAND RELIED UPON THE O RDERS OF AUTHORITIES BELOW AND SUBMITTED THAT THE NOTICE HAS BEEN VALIDLY ISSUED ON THE BASIS OF SEARCH WHICH TOOK PLACE IN THE YEAR 2005. HE THEREFORE SUBMITTED THAT THE ORDERS OF AUTHORITIES BELOW SHOULD BE SUSTAINED AND THIS GROUND OF THE ASSESSEES APPEALS SHOULD BE REJECTED. 5. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE RELEVANT F ACTS AS MENTIONED BY THE ASSESSING OFFICER IN PARAGRAPH 1 AND 2 OF TH E ASSESSMENT ORDER READ AS UNDER:- SEARCH & SEIZURE ACTION U/S 132 OF THE INCOME TAX ACT WAS CARRIED OUT ON R.L. GROUP ON 13/12/2005. THIS OPERATION WAS CARRIED OUT AT PREMISES NO. B-265 DERAWALA NAGAR DELHI. THIS PREMISES BELONGS TO SH . RAM LAL BHATIA PARTNER OF M/S R.L. ALLIED INDUSTRIE S. AT THIS PREMISES CERTAIN DOCUMENTS WERE FOUND AND SEIZED. OUT OF THIS PAGES OF ANNEXURE A-1 TO A-3 A-7 TO A-9 A-15 TO A-18 AND A-21 TO A-24 BELONGS TO M/ S R L ALLIED INDUSTRIES. 2. IN THIS CASE THE SEIZED MATERIAL PERTAINING TO M /S R.L. ALLIED INDUSTRIES WAS RECEIVED ON 12/03/2009 F ROM ACIT CENTRAL CIRCLE-17. ACCORDINGLY NOTICE UNDER SECTION 153C WAS ISSUED AND SERVED UPON ASSESSEE ON 24/03/2009 REQUESTING TO FILE RETURN WITHIN 15 DAY S OF SERVICE OF NOTICE. IN RESPONSE TO THIS NOTICE A LE TTER WAS FILED BY THE ADVOCATE OF THE ASSESSEE REQUESTING FO R THE INSPECTION OF THE MATERIAL. ON 22/05/2009 SH TARUN ASWANI ADVOCATE WAS ALLOWED THE INSPECTION OF THE FILE. 6. FROM THE ABOVE IT IS EVIDENT THAT IN THE CASE O F THE ASSESSEE ASSESSMENT HAS BEEN COMPLETED ON THE BASIS OF NOTIC E UNDER SECTION 153C WHICH WAS ISSUED ON 24 TH MARCH 2009 AND THE SEIZED MATERIAL ITA-567/D/2011 & OTHERS 4 PERTAINING TO THE ASSESSEE WAS RECEIVED ON 12 TH MARCH 2009 FROM ACIT CENTRAL CIRCLE-17. IN THE LIGHT OF THESE FAC TS LET US EXAMINE THE RELEVANT PROVISIONS OF THE INCOME-TAX ACT. SECTION 153C READS AS UNDER:- 153C. [(1)] NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 139 SECTION 147 SECTION 148 SECTION 149 SECTION 151 AND SECTION 153 WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY MONEY BULLION JEWEL LERY OR OTHER VALUABLE ARTICLE OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A THEN THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED SHALL BE HANDED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON AND THAT ASSESSING OFFICER SHALL PROCEED AGA INST EACH SUCH OTHER PERSON AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR REASSESS INCOME OF SUCH OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153A:]. 7. AS PER SECTION 153C WHERE THE ASSESSING OFFICER IS SATISFIED THAT WHERE THE BOOKS OF ACCOUNT OR DOCUMENTS SEIZED BELO NG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A THEN THE BOOKS OF ACCOUNT OR DOCUMENTS SHALL BE HANDED OVER TO THE AS SESSING OFFICER HAVING JURISDICTION OF SUCH OTHER PERSON AND THAT A SSESSING OFFICER SHALL PROCEED AGAINST EACH SUCH OTHER PERSON IN ACCORDANC E WITH THE PROVISIONS OF SECTION 153A. SECTION 153A READS AS UNDER:- 153A. [(1)] NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 139 SECTION 147 SECTION 148 SECTION 149 SECTION 151 AND SECTION 153 IN THE CASE OF A PERSO N WHERE A SEARCH IS INITIATED UNDER SECTION 132 OR BO OKS OF ACCOUNT OTHER DOCUMENTS OR ANY ASSETS ARE REQUISITIONED UNDER SECTION 132A AFTER THE 31 ST DAY OF MAY 2003 THE ASSESSING OFFICER SHALL (A) ISSUE NOTICE TO SUCH PERSON REQUIRING HIM TO FU RNISH WITHIN SUCH PERIOD AS MAY BE SPECIFIED IN THE NOTI CE THE RETURN OF INCOME IN RESPECT OF EACH ASSESSMENT YEAR FALLING WITHIN SIX ASSESSMENT YEARS REFERRED T O IN ITA-567/D/2011 & OTHERS 5 CLAUSE (B) IN THE PRESCRIBED FORM AND VERIFIED IN THE PRESCRIBED MANNER AND SETTING FORTH SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED AND THE PROVISIONS OF THIS ACT SHALL SO FAR AS MAY BE APPLY ACCORDINGLY AS IF SUCH RETURN WERE A RETURN REQUIRED TO BE FURNISHED UNDER SECTION 139; (B) ASSESS OR REASSESS THE TOTAL INCOME OF SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WH ICH SUCH SEARCH IS CONDUCTED OR REQUISITION IS MADE:. 8. THUS AS PER SECTION 153A(1)(B) THE ASSESSING O FFICER IS EMPOWERED TO ASSESS OR REASSESS THE TOTAL INCOME OF THE SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSME NT YEAR RELEVANT TO THE ASSESSMENT YEAR IN WHICH SEARCH IS CONDUCTED. THUS IN OTHER WORDS HE HAS TO ASSESS THE SEARCH YEAR AND S IX PRECEDING YEARS. AS PER PROVISO TO SECTION 153C FOR THE PURPOSE OF SECTION 153C THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS SHALL BE CONSIDERED THE DATE OF SEARCH. THEREFORE WITH THE COMBINED READING OF PROVISO TO SECTION 153C AND SECTION 153A(1)(B) IT IS CLEAR THAT IN THE CASE OF THE PERSON IN WHOSE CASE ACTION IS REQUIRED UNDER SECTION 153C THE ASSESSING OFFICER IS EMPOWERED TO TAKE AC TION UNDER SECTION 153C FOR THE YEAR IN WHICH THE SEIZED DOCUMENT IS R ECEIVED BY HIM AND THE PRECEDING SIX YEARS. IN THE CASE UNDER APPEAL BEFORE US AS MENTIONED BY THE ASSESSING OFFICER IN PARAGRAPH 2 O F HIS ORDER THE SEIZED MATERIAL WAS RECEIVED ON 12 TH MARCH 2009 FROM ACIT CENTRAL CIRCLE-17. THUS THE YEAR IN WHICH SEIZED MATERIAL WAS SEIZED IS PREVIOUS YEAR 2008-09 RELEVANT TO AY 2009-10. THE PRECEDING SIX YEARS WOULD BE AY 2008-09 2007-08 2006-07 2005-0 6 2004-05 AND 2003-04. THEREFORE AFTER CONSIDERING THE FACTS OF THE ASSESSEES CASE AND COMBINED READING OF SECTION 153C AS WELL AS SEC TION 153A IN OUR OPINION THE ISSUE OF NOTICE UNDER SECTION 153C FOR AY 2001-02 & 2002- 03 IS BARRED BY LIMITATION. ACCORDINGLY WE QUASH THE SAME AND CONSEQUENTIALLY THE ASSESSMENT ORDER PASSED IN PUR SUANCE TO THE NOTICE ISSUED UNDER SECTION 153C IS ALSO QUASHED. ITA-567/D/2011 & OTHERS 6 9. SINCE WE HAVE QUASHED THE ASSESSMENT ORDER THE OTHER GROUNDS RAISED BY THE ASSESSEE IN BOTH THE YEARS WHICH ARE AGAINST THE MERITS OF THE ADDITIONS DO NOT SURVIVE FOR ADJUDICATION. 10. ITA NOS.4814/DEL/2012 & 4816/DEL/2012 ARE THE A SSESSEES APPEALS FOR AY 2001-02 & 2002-03 RESPECTIVELY AGAIN ST THE LEVY OF PENALTY UNDER SECTION 271F AMOUNTING TO `5 000/- EA CH. AS WE HAVE QUASHED THE ISSUE OF NOTICE UNDER SECTION 153C THE LEVY OF PENALTY UPON THE ASSESSEE FOR FAILURE TO FURNISH THE RETURN IN PURSUANCE OF SUCH NOTICE CANNOT BE SUSTAINED. THE SAME ARE ALSO CANC ELLED. 11. ITA NOS.4813/DEL/2012 & 4815/DEL/2012 ARE THE A SSESSEES APPEALS FOR AY 2001-02 & 2002-03 RESPECTIVELY AGAIN ST THE ORDER PASSED UNDER SECTION 154. 12. THE ASSESSING OFFICER HAS MODIFIED THE ORDER PA SSED UNDER SECTION 153C FOR THESE TWO YEARS AND CHARGED THE IN TEREST UNDER SECTION 234B. HOWEVER WHILE DISPOSING OF THE ASSE SSEES APPEAL IN ITA NOS.567/DEL/2011 & 568/DEL/2011 WE HAVE QUASHE D THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) READ W ITH SECTION 153C. ONCE THE ASSESSMENT ORDER HAS BEEN QUASHED THE QUESTION OF RECTIFICATION OF THE SAME DOES NOT ARISE. ACCORDIN GLY THE ORDER PASSED UNDER SECTION 154 FOR AY 2001-02 & 2002-03 IS QUASH ED AND CONSEQUENTIALLY THE ASSESSEES APPEALS VIDE ITA NO S.4813/DEL/2012 & 4815/DEL/2012 ARE ALLOWED. 13. ITA NO.4812/DEL/2012 IS THE ASSESSEES APPEAL F OR AY 2000-01 AGAINST THE LEVY OF PENALTY OF `5 000/- FOR NON-FIL ING OF THE RETURN IN PURSUANCE TO NOTICE UNDER SECTION 153C. WHILE DECI DING THE ASSESSEES APPEALS FOR AY 2001-02 & 2002-03 IN PARA GRAPH NOS.5 TO 8 ABOVE WE HAVE HELD THAT THE ISSUE OF NOTICE PRIOR TO AY 2003-04 IS ITA-567/D/2011 & OTHERS 7 BARRED BY LIMITATION. ONCE THE NOTICE ISSUED UNDER SECTION 153C IS BARRED BY LIMITATION THE SAME IS VOID AND THE ASSE SSEE CANNOT BE PENALIZED FOR NON-FILING OF THE RETURN IN RESPONSE TO SUCH NOTICE WHICH IS NOT VALID IN LAW. ACCORDINGLY THE PENALTY LEVI ED UNDER SECTION 271F FOR AY 2000-01 IS ALSO CANCELLED. 14. IN THE RESULT ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH NOVEMBER 2014. SD/- SD/- ( (( ( I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR I.C. SUDHIR ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 28.11.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S R.L. ALLIED M/S R.L. ALLIED M/S R.L. ALLIED M/S R.L. ALLIED INDUSTRIES INDUSTRIES INDUSTRIES INDUSTRIES 50 5050 50- -- -F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD F KOHLAPUR ROAD KAMLA NAGAR DELHI KAMLA NAGAR DELHI KAMLA NAGAR DELHI KAMLA NAGAR DELHI 110 007. 110 007. 110 007. 110 007. 2. RESPONDENT : INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -20(1) NEW DELHI. 20(1) NEW DELHI. 20(1) NEW DELHI. 20(1) NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR