Case Law Details
PCIT Vs Pavitra Realcon Pvt. Ltd. (Delhi High Court)
In the present case, it is seen that the Revenue has failed to allude to any steps which were taken to determine that the seized material belonged to the respondent-assessee group. Notably, the satisfaction note has also been prepared in a mechanical format and it does not provide any details about the incriminating material. Therefore, a failure on the part of the Revenue to manifest as to how the material gathered from the search of Jain group of companies belonged to the respondent-assessee group and the same is incriminating, vitiates the entire assessment proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. These appeals by the Revenue impugn the order of the Income Tax Appellate Tribunal [“ITAT”] dated 04 October 2017 passed in ITA 3185/DEL/2015, ITA 3186/DEL/2015 and ITA 3253/DEL/2015 for Assessment Year [“AY”] 2011-12.
2. The facts of the case would indicate that the respondents M/s Pavitra Realcon Pvt. Ltd, M/s Delicate Realtors Pvt. Ltd. and M/s Design Infracon (P) Ltd [“respondent-assessee companies”] are part of a group of companies namely, M/s BPTP Ltd. The controversy essentially emanates from a search and seizure operation under Section 132 of the Income Tax Act, 1961 [“Act”], which was conducted on 07 December 2010 on M/s BPTP Ltd. group of companies and was concluded on 05 February 2011. On 30 September 2011, the respondent- assessee companies filed their Income Tax Return [“ITR”] declaring the income to be nil in the cases of M/s Pavitra Realcon Pvt. Ltd. and M/s Delicate Realtors Pvt. Ltd., whereas, a total loss of INR 3254/- was declared in the case of M/s Design Infracon (P) Ltd.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
