DCIT, CC 12, v. Alka Steels,

ITSSA 125/DEL/2007 | misc
Pronouncement Date: 18-01-2011 | Result: Dismissed

Appeal Details

RSA Number 12520116 RSA 2007
Assessee PAN AABFA6649N
Bench Delhi
Appeal Number ITSSA 125/DEL/2007
Duration Of Justice 3 year(s) 7 month(s) 12 day(s)
Appellant DCIT, CC 12,
Respondent Alka Steels,
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 18-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 18-01-2011
Date Of Final Hearing 18-01-2011
Next Hearing Date 18-01-2011
Assessment Year misc
Appeal Filed On 06-06-2007
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 A BENCH A BENCH A BENCH A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI R.P.TOLANI JM AND SHRI SHAMIM YAHYA A M BEFORE SHRI R.P.TOLANI JM AND SHRI SHAMIM YAHYA A M BEFORE SHRI R.P.TOLANI JM AND SHRI SHAMIM YAHYA A M BEFORE SHRI R.P.TOLANI JM AND SHRI SHAMIM YAHYA A M IT(SS) A.NO.125/DEL/2007 IT(SS) A.NO.125/DEL/2007 IT(SS) A.NO.125/DEL/2007 IT(SS) A.NO.125/DEL/2007 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -12 12 12 12 NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S ALFA STEELS M/S ALFA STEELS M/S ALFA STEELS M/S ALFA STEELS 2K 2K2K 2K- -- -42 4242 42 B.P.NIT B.P.NIT B.P.NIT B.P.NIT FARIDABAD FARIDABAD FARIDABAD FARIDABAD HARYANA. HARYANA. HARYANA. HARYANA. PAN NO. PAN NO. PAN NO. PAN NO.AABFA6649N. AABFA6649N. AABFA6649N. AABFA6649N. (APPELLANT) (RESPONDENT) CROSS CROSS CROSS CROSS - -- - OBJECTION NO.221/DEL/2009 OBJECTION NO.221/DEL/2009 OBJECTION NO.221/DEL/2009 OBJECTION NO.221/DEL/2009 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 BLOCK PERIOD : 1.4.1990 TO 24.11.2000 M/S ALFA STEELS M/S ALFA STEELS M/S ALFA STEELS M/S ALFA STEELS 2K 2K2K 2K- -- -42 B.P.NIT 42 B.P.NIT 42 B.P.NIT 42 B.P.NIT FARIDABAD FARIDABAD FARIDABAD FARIDABAD HARYANA. HARYANA. HARYANA. HARYANA. PAN NO.AABFA664 PAN NO.AABFA664 PAN NO.AABFA664 PAN NO.AABFA6649N. 9N. 9N. 9N. VS. VS. VS. VS. ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF ASSTT.COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -12 12 12 12 NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI ASHOK PANDEY CIT - DR. ASSESSEE BY : SHRI K.SAMPATH ADVOCATE. ORDER ORDER ORDER ORDER PER R.P.TOLANI J PER R.P.TOLANI J PER R.P.TOLANI J PER R.P.TOLANI JM : M : M : M : THIS IS REVENUES APPEAL AND ASSESSEES CROSS-OBJEC TION WHICH RESPECTIVELY RAISE FOLLOWING GROUNDS:- GROUND RAISED BY THE REVENUE :- 1. ON THE FACTS AND IN LAW AND IN THE CIRCUMSTANCE S OF THE CASE THE LD.COMMISSIONER OF INCOME TAX (APPEAL ) HAS ERRED IN QUASHING THE ASSESSMENT ORDER PASSED U/S 158BC. IT(SS)-125/D/2007 & CO-221/D/2009 2 GROUNDS RAISED BY THE ASSESSEE :- THAT ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN LAW ON THE FOLLOWIN G GROUNDS: I. IN NOT PASSING ANY JUDGMENT OR ISSUING ANY DIREC TIONS WITH REGARD TO THE SPECIFIC GROUND THAT THE ASSESSM ENT WAS AB-INITIO ILLEGAL AND VOID INSOFAR AS THE AO PROCUR ED THE BLOCK RETURN WITH A DIRECTION TO FILE THE SAME WITH IN 15 DAYS OF THE SERVICE OF THE NOTICE. SUCH CONDITIONALITY BEING ILLEGAL AND ULTRA VIRUS VITIATED THE ASSESSMENT TO THE ROOTS AND AS SUCH THE ASSESSMENT ORDER AS FRAMED DATED 29.11.02 MERITED TO BE QUASHED ON THAT GROUND. II. THAT THE NOTICE SOLICITING RETURN U/S 158BC HAV ING BEEN ISSUED BY AN OFFICER NOT HOLDING ANY JURISDICT ION ON THE RESPONDENT AND THE ENTIRE PROCEEDINGS BEING BAS ED ON SUCH REQUISITION THE ASSESSMENT AS FRAMED IS VITIA TED AND VOID AND MUST BE QUASHED. III. THE ASSESSMENT BEING BASED ON PAPERS NOT LOCAT ED IN THE PREMISES OF THE RESPONDENT WERE INCAPABLE O F BEING ADDED U/S 158BC AND DOING SO VITIATED THE PROVISION OF THE ACT AND BEING SO THE ASSESSMENT IS ILLEGAL AND VOI D. 2. THE REVENUE IS AGGRIEVED ON THE ORDER OF LEARNED CIT(A) HOLDING THAT IMPUGNED BLOCK ASSESSMENT FRAMED BY THE AO U/S 158BC IS BAD IN LAW AS NO VALID WARRANT OF SEARCH WAS ISSUED IN THE CASE OF THE ASSESSEE I.E. M/S ALFA STEELS FARIDABAD HARYANA. CIT(A) HELD THAT THE IMPUGNED SEARCH ACTION U/S 132 WAS CARRIED OUT IN T HE CASE OF M/S ALFA METALS AND SHRI RAKESH CHABRA AND NO SEARCH ACTION OR WARRANT WAS ISSUED IN THE CASE OF ASSESSEE M/S ALFA STEELS. RE MAND REPORT WAS CALLED FROM THE AO AND ON CONSIDERATION OF THE REMA ND REPORT AND VARIOUS CASE LAWS CIT(A) QUASHED THE IMPUGNED BLOC K ASSESSMENT ON ABOVE GROUNDS. LEARNED DR FILED A COPY OF THE WARR ANT DATED 24.11.2000 WHICH IS ISSUED IN THE NAME OF ONE M/S A LFA METALS. LEARNED DR CONTENDS THAT THIS IS THE ONLY WARRANT A VAILABLE ON RECORD. IT(SS)-125/D/2007 & CO-221/D/2009 3 3. LEARNED COUNSEL FOR THE ASSESSEE ON THE OTHER H AND CONTENDS THAT EVERY ASSESSMENT U/S 158BC HAS TO BE BASED ON A VALID SEARCH WARRANT AND SEARCH ACTION CONSEQUENT THEREON. SINC E IN THIS CASE LEARNED DR HAS NOT BEEN ABLE TO DEMONSTRATE ANY WAR RANT ISSUED ON THE ASSESSEE CIT(A) HAS RIGHTLY QUASHED THE BLOCK ASSESSMENT. 4. WE HAVE HEARD AND RIVAL CONTENTIONS AND PERUSED RELEVANT MATERIAL ON RECORD. IN VIEW OF THE FACT THAT NO W ARRANT ISSUED IN THE NAME OF THE ASSESSEE HAS BEEN PRODUCED BY THE DEPAR TMENT BEFORE US WE HAVE NO CHOICE BUT TO UPHOLD THE ORDER OF CIT(A) QUASHING THE BLOCK ASSESSMENT. THE REVENUES APPEAL IS DISMISSED. 5. THE ASSESSEES CROSS-OBJECTION IS BARRED BY LIMI TATION BY 250 DAYS. LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITT ED THAT THE SAME IS NOT PRESSED AND IT MAY BE TREATED AS INFRUCTUOUS . IN VIEW THEREOF THE CROSS-OBJECTION OF THE ASSESSEE IS ALSO DISMISS ED. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE A S WELL AS THE CROSS-OBJECTION OF THE ASSESSEE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 18 TH JANUARY 2011. SD/- SD/- (SHAMIM YAHYA (SHAMIM YAHYA (SHAMIM YAHYA (SHAMIM YAHYA ) )) ) (R.P.TOLANI (R.P.TOLANI (R.P.TOLANI (R.P.TOLANI ) )) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER JUD JUDJUD JUD ICIAL MEMBER ICIAL MEMBER ICIAL MEMBER ICIAL MEMBER DATED : 18.01.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR IT(SS)-125/D/2007 & CO-221/D/2009 4