ACIT Vs Honey Arora (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed five appeals filed by the Revenue for Assessment Years 2011-12 to 2015-16, upholding the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] that had annulled assessments framed under Section 153A of the Income-tax Act.
The case arose from a search conducted on 6 February 2019 at the assessee’s residence. Following the search, the Assessing Officer (AO) issued notices under Section 153A and completed assessments by making additions under Section 69A. The assessee challenged the validity of the assessments before the CIT(A), contending that the very assumption of jurisdiction under Section 153A was invalid.
Before the CIT(A), the assessee argued that the search was illegal because summons under Section 131(1A) were issued on the same date and time as the search, the search warrant was not issued in the assessee’s name, the panchnama was also not drawn in the assessee’s name, copies of the search warrant were not supplied despite repeated requests, and the search had been conducted due to mistaken identity. The assessee further contended that the warrant and panchnama related to other named persons and an entity, while statements recorded during the search and penalty notices also indicated that the proceedings pertained to another group rather than the assessee. The assessee maintained that no valid search had been initiated against him, rendering the proceedings under Section 153A invalid.
