This article provides a detailed analysis of the Income Tax Appellate Tribunal’s decision for ITA No. 305/DEL/2019 concerning AGM Properties Pvt. Ltd., New Delhi, against the Assistant Commissioner of Income Tax, Central Circle-14, New Delhi.
The case revolves around the assessment for the assessment year 2013-14 following a search conducted on September 16, 2015, in the AMP Group of cases. AGM Properties Pvt. Ltd. filed the appeal on January 17, 2019. The Tribunal heard the case on April 26, 2022, and pronounced the order on July 19, 2022.
The primary issue was the validity of the assessment under section 153A of the Income Tax Act, 1961, following the search operations. The appellant contested that no incriminating material was found during the search, and hence, the assessment was invalid.
The appellant, represented by advocates Shri Rakesh Gupta, Shri Somil Agarwal, and Shri Deepesh Garg, argued that the warrant of authorization was not in the name of AGM Properties Pvt. Ltd. but in the name of its former entity, M/s Automobiles Component (India) Ltd. The appellant contended that the assessment under section 153A was unwarranted as there was no search conducted directly on AGM Properties Pvt. Ltd.
The Tribunal, consisting of Shri Anil Chaturvedi (Accountant Member) and Ms. Astha Chandra (Judicial Member), evaluated the arguments and found the following:
The Tribunal’s decision to quash the assessment order underscores the legal principle that for assessments under section 153A to be valid, there must be incriminating material discovered during the search. This case sets a precedent for similar cases where assessments are made without any substantial evidence found during search operations.
The Tribunal’s decision in ITA 305/DEL/2019 highlights the importance of adhering to legal precedents and ensuring that assessments under section 153A are based on solid evidence discovered during search operations. The case reaffirms the taxpayer’s right to a fair assessment process and the necessity for the Revenue to substantiate its claims with concrete evidence.
In conclusion, AGM Properties Pvt. Ltd.’s appeal was allowed, and the assessment order was quashed, providing a significant victory for the appellant and reinforcing the legal safeguards available to taxpayers.
Detailed Analysis of ITA 305/DEL/2019: AGM Properties Pvt. Ltd. vs ACIT
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