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Income Tax Appellate Tribunal - Delhi

M/S. Minda Corporation Ltd., New Delhi vs Dcit, New Delhi on 14 May, 2018

         IN THE INCOME TAX APPELLATE TRIBUNAL
               DELHI BENCH "E" NEW DELHI

     BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
                        &
   SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER

               I.T.As. No.739 & 740/DEL/2015
             Assessment Year: 2007-08 & 2008-09

Minda Corporation Ltd.,          vs.   DCIT, Central Circle-3,
C/o M/s. RRA Tax India,                New Delhi.
D-28, South Extension, Part-I,
New Delhi
TAN/PAN: AAACM 0344C
(Appellant)                            (Respondent)


Appellant by:              Shri Ashwani Taneja, FCA
Respondent by:             Shri Shefali Swaroop, Sr.D.R.
Date of hearing:           08 05 2018
Date of pronouncement:     14 05 2018


                           ORDER

PER AMIT SHUKLA, J.M.:

The aforesaid appeals have been filed by the assessee against the separate impugned order of even date, dated 08.12.2014 for the quantum of assessment passed u/s. 143(3)/153A for the Assessment Years 2007-08 and 2008-09. In various grounds of appeal, assessee has challenged the scope of addition made u/s.153A, without there being any incriminating material found at the time of search and additions which have been sustained by the ld. CIT(A) in the original assessment proceedings passed u/s.143(3) has only been reiterated.

2. At the outset, learned counsel for the assessee, Mr. Ashwani Taneja submitted that here in this case original return of income was filed declaring an income of Rs.7,23,30,072/- on 30.10.2007 for the Assessment Year 2007-08; and at Rs.6,21,15,020/- on 27.09.2008 for the Assessment Year 2008-09. In both the years, the case was selected for scrutiny and the assessment was completed u/s.143(3) vide order dated 29.12.2009 and 12.07.2010 for the Assessment Years 2007-08 and 2008-09 assessing the income at Rs. 7,86,92,052/- and Rs. 6,68,53,631/-, respectively. When the search and seizure operation was carried out u/s. 132(1) on 10.01.2012, the assessment order for both the years had attained finality to the extent that already part relief was allowed by the ld. CIT(A) and assessee's as well as Revenue's appeal is pending before the Tribunal. Now in the impugned assessment order passed u/s.153A r.w.s. 143(3), AO has again repeated the same addition and after allowing the relief granted by the ld. CIT(A), he has finally made the assessment at Rs.7,51,36,330/-. No separate addition other than the originally assessed income has been made by the Assessing Officer. Thus, he submitted that no double addition should be made, one in the assessment originally framed u/s. 143(3) and then again in the assessment made u/s.153A. Alternatively, he submitted that if from the stage of the Tribunal assessee gets relief then the addition made by the Assessing Officer and sustained by the ld. CIT (A) should be directed to be deleted.

3. On the other hand, learned DR submitted that Assessing Officer has rightly computed the income originally assessed and whatever may be the impact in the final result of quantum proceedings u/s 143(3), the same may be followed here also.

4. After considering the aforesaid submissions and on perusal of the impugned order, we find that income originally assessed for the Assessment Year 2007-08 at Rs.7,86,92,050/-; and for the Assessment Year 2008-09 Rs.6,68,53,631/- had not abated at the time of search as it was not pending in terms of 2nd Proviso to section 153A. Against the said assessment orders, first appeal was filed by the assessee wherein certain relief was given by the ld. CIT (A), against which both Revenue and assessee are in appeal before this Tribunal which is pending. The learned Assessing Officer in the assessment order has not made any separate addition for any income arising out of seized material found during the course of search, albeit computed the same income as was made originally in the original assessment order and whatever relief was given by the ld. CIT (A), he reduced the same from the originally assessed income ad completed the assessment at an income of Rs.7,51,36,330/- for Assessment Year 2007-08 and Rs.6,56,19,640/- for the Assessment Year 2008-09. Since already addition has been made under 143(3) proceedings and both the assessment were unabated therefore, again same additions were reiterated, that is, the I.T.A. No.739 & 740/Del/2015 4 Assessing Officer has computed the income as per the original assessed income only. Though, he has computed the income as per the original assessment, however, to allay the apprehension of the Ld. Counsel for any double addition being made in theses assessments, we direct the Assessing Officer that whatever may be the outcome in the original quantum proceedings u/s. 143(3), now pending before the Tribunal, the same consequential relief should be given here and he will ensure that no double addition is made. For instance, if additions are sustained from the stage of the Tribunal, then such an addition cannot be repeated in the impugned assessment u/s.153A; and in case if additions stands deleted then also all the additions made originally will automatically get deleted and will not be roped in again in the assessments u/s 153A. With these observations, the appeal of the assessee is treated as allowed.

6. In the result, the appeal of the assessee is treated as allowed.

Order pronounced in the open Court on 14th May, 2018.

           Sd/-                                      Sd/-

[PRASHANT MAHARISHI]                          [AMIT SHUKLA]
 ACCOUNTANT MEMBER                          JUDICIAL MEMBER

DATED: 14th May, 2018