Case Number: ITA 700/DEL/2021
Appellant: DCIT, CC-01, New Delhi
Respondent: D.L. Heera Bhai Jewellery Arcade Pvt. Ltd., New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-06-11
Order Type: Final Tribunal Order
Date of Order: 2022-08-25
Pronounced On: 2022-08-25
The case ITA 700/DEL/2021 was filed by the Deputy Commissioner of Income Tax (DCIT), Central Circle-01, New Delhi (the appellant), against D.L. Heera Bhai Jewellery Arcade Pvt. Ltd., New Delhi (the respondent), for the assessment year 2016-17. The dispute focused on the necessity of finding incriminating material to initiate proceedings under section 153C of the Income Tax Act.
The primary issue in this appeal was whether the presence of incriminating material was mandatory for initiating proceedings under section 153C for a specific assessment year.
The appellant, DCIT, raised several grievances:
The respondent, represented by Shri Ajay Wadhwa, Adv., and Ms. Bharti Sharma, CA, argued that no incriminating material was found pertaining to the assessment years under consideration (2012-13 to 2016-17). The respondent contended that the satisfaction note did not refer to any seized material related to the additions made in the assessment order.
The Income Tax Appellate Tribunal (ITAT) analyzed the facts and arguments presented by both parties. Key points of consideration included:
The Tribunal agreed with the findings of the CIT(A) that no incriminating material pertaining to the assessment years 2012-13 to 2016-17 was found, and the seized material referred to in the satisfaction note was not related to the additions made in the assessment order.
The ITAT upheld the decision of the CIT(A) and dismissed the appeal filed by the DCIT, Central Circle-01, New Delhi, against D.L. Heera Bhai Jewellery Arcade Pvt. Ltd. The Tribunal concluded that the proceedings under section 153C could not be initiated without incriminating material specific to the assessment year under consideration.
Order Pronounced in the Open Court on 25.08.2022 by Shri N.K. Billaiya, Accountant Member, and Ms. Astha Chandra, Judicial Member.
This ruling emphasizes the necessity of finding incriminating material specific to the assessment year for initiating proceedings under section 153C. It underscores the importance of adhering to legal requirements and ensures that assessments are not made on technical grounds alone. This decision also aligns with the precedent set by the Hon’ble Supreme Court in similar cases, reinforcing the need for substantial evidence in tax disputes.
DCIT vs. D.L. Heera Bhai Jewellery Arcade: Incriminating Material and Proceedings u/s 153C
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