Case Number: ITA 714/DEL/2021
Appellant: DCIT Circle-05, New Delhi
Respondent: Karina Airlines International Ltd., New Delhi
Assessment Year: 2011-12
Case Filed On: 2021-06-15
Order Type: Final Tribunal Order
Date of Order: 2023-05-11
Pronounced On: 2023-05-11
Before: Shri Saktijit Dey, Judicial Member and Shri M. Balaganesh, Accountant Member
This appeal was filed by the Revenue (DCIT Circle-05) against the order dated 26.02.2021 of the learned Commissioner of Income Tax (Appeals)-24, New Delhi, for the assessment year 2011-12. The case involves assessment discrepancies identified during the assessment of Karina Airlines International Ltd.
The Revenue filed this case challenging the order of the CIT(A), which quashed the assessment order passed by the Assessing Officer (AO) for the assessment year 2011-12. The AO had recorded satisfaction for initiation of proceedings under section 153C of the Income Tax Act based on a search and seizure operation conducted on 07.04.2016 in the case of Sh. Harvansh Chawla.
The primary ground of appeal raised by the Revenue was that the CIT(A) erred in quashing the assessment order passed under section 153C of the Income Tax Act for the assessment year 2011-12.
The Departmental Representative argued that the satisfaction for initiation of proceedings under section 153C was valid and the assessment order should not have been quashed by the CIT(A). The representative further contended that the amendment made to sections 153A and 153C by the Finance Act, 2017, should apply to the present case.
The counsel for the assessee submitted that the Tribunal had already quashed the assessment order for the same assessment year in the cross appeal filed by the assessee, making the present appeal by the Revenue infructuous.
The Tribunal reviewed the case records, submissions of both parties, and the relevant judicial precedents. The Tribunal noted that the search and seizure operation under section 132 of the Income Tax Act had taken place on 07.04.2016, and the AO of the searched person recorded satisfaction on 29.03.2019, while the AO of the assessee recorded satisfaction on 15.09.2019.
The Tribunal observed that the amendment to sections 153A and 153C by the Finance Act, 2017, which allows the AO to make assessments for the same set of assessment years for both the searched person and the person other than the searched person, would apply prospectively from 01.04.2017.
The Tribunal referred to the following judicial precedents:
The Tribunal concluded that since the date of search in the present case was 07.04.2016, the amendment brought by the Finance Act, 2017, would not apply. The assessment order passed under section 153C for the assessment year 2011-12 was thus without jurisdiction and invalid. The Tribunal quashed the assessment order and set aside the order of the CIT(A).
Consequently, the Tribunal dismissed the appeal filed by the Revenue as infructuous.
This summary provides an overview of the key points and conclusions from the ITAT order in the case of DCIT Circle-05 vs. Karina Airlines International Ltd. for the assessment year 2011-12.
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