×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
07-01-2019, Best City Projects, Section 153C, 246A, Tribunal Delhi
All these four appeals have been preferred by the assessee and relate to two assessment years 2006-07 and 2007-08 in the case of Best City Projects India Pvt. Ltd. and two assessment years 2007-08 and 2008-09 in the case of Best City Realtors India Pvt. Ltd.
2. The brief facts of the case/s are that search and seizureoperation was carried out in the business premises of the Best Group of cases on 15.09.2008. Subsequently, assessment orders u/s 153A of the Income Tax Act, 1961 (hereinafter called the ‘Act’) were passed. Another search and seizure operation u/s 132 of the Act was carried out on 28 03.2011 at the business premises of the Best Group and assessments u/s 153C of the Act were completed on 28.03.2013 in the following cases:
2.1 Against the above assessment orders passed u/s 153C of the Act vide order/s dated 28.03.2013, the assessee/s filed appeals before the Ld. CIT (Appeals)- 31, New Delhi and challenged the initiation of proceedings by the Assessing Officer (AO) under section 153C of the Act as well as the additions on merits.
2.2 The Ld. CIT (Appeals), vide order/s dated 11.03.2014 confirmed the initiation of the proceedings under section 153C and thus decided the legal issue against of the assessee in the cases/s of Best City Infrastructure Ltd. and Best City Developers India Pvt. Ltd. Since, there was no relief from the Ld. CIT (A) in the cases of these two assessees, they further appealed before the ITAT and ITAT, vide order dated 08.02.2017, deleted the addition made by the AO and the
order of the ITAT wassubsequently confirmed by the Hon’ble Delhi High Court vide order dated 30.10.2017.
2.3 However, in the case of the two assesses, now in appeal before us, the learned CIT (Appeals) decided the issue in favour of the assessee by holding that since there was no incriminating material found during the course of search belonging to the assessee, there could not be any addition in the hands of the assessee and, thus, the legal issue was decided in favour of the assessee. However, on merits the learned CIT (A) confirmed the addition in the hands of the
assessee/s. Since the legal issue was decided in favour of the assessee, no further appeal/s were preferred by the assessees now in appeal before us and no appeals were filed by therevenue also.
2.4 Thereafter, the assessees filed applications before the AO for giving the appeal effect requesting the AO to give effect to the order/s of the Ld. CIT (A).
2.5 However, the AO disposed of the said applications vide order dated 27.04.2017 stating that the order/s by the Ld. CIT (A) had been passed in the favour of revenue and thus the effect to the application/s of the assesse companies cannot be granted and that the demand/s raised by the AO remained as they were.
2.6 Aggrieved, the captioned assessees approached the Ld. CIT (A) once again challenging the action of the AO in denying the grant of appeal effect to the assessee/s. However, the Ld. CIT (A) dismissed the appeals by simply stating that the appeals filed by the assessee/s were not maintainable under the provisions of section 246A of the Act.
2.7 Now the captioned assesses are before the ITAT challenging the act on the Ld. CIT (A) in holding that the orders of the AO denying grant of appeal effect were not