Case Law Details
M/s. Garg Brothers Pvt. Ltd. Vs DCIT (ITAT Kolkata)
Hon’ble ITAT held that In respect of assessments completed prior to date of search that have not abated, the scope of proceedings under section 153A of Income Tax Act, 1961 has to be confined only to material found during search. As no material, whatsoever, was found in the course of search, question of making addition on account of unexplained share capital could not have been the subject-matter of proceedings under section 153A.
FULL TEXT OF THE ITAT JUDGMENT
The captioned three appeals filed by the different assessee’s involving common issues and all appeals pertaining to Assessment year 2009-10, are directed by the orders passed by the Principal Commissioner of Income Tax u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’). By way of these appeals, these assessee’s have challenged the correctness of the order passed by the Commissioner of Income Tax, dated 15.03.2017 exercising the jurisdiction u/s 263 of the Act.
2. At the outset it has been brought to our notice that there is a delay of 211 days in filing these appeals. The assessee’s have moved a condonation petition before the Tribunal to condone the aforesaid delay. The ld. Counsel for the assessee, Shri S.K. Tulsiyan, has submitted before us that these assessee’s are not much aware of the intricacy of income tax and thus, used to rely on the expert advice rendered by their Tax Consultants. Later, on an advice from a senior lawyer, the assessee’s came to know that the order of ld. Principal CIT u/s 263 of the Act is appealable before the Tribunal. Since, their earlier Authorized Representative/Tax Consultants had not intimated the assessee’s about future course of action which needs to be taken against the said order u/s 263 of the Act, the assessee’s did not prefer an appeal before the Tribunal. On advice from a senior lawyer, the assessee’s came to know that the order u/s 263 is appealable and thereafter the assessee’s handed over the relevant records to the senior lawyer who prepared the necessary documents for filing the appeal against the order u/s 263 and therefore, there was a delay about 211 days.
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