In case of a “searched person”, are provisions of section 153A of the Income Tax Act applicable?

This case examines whether Section 153A of the Income Tax Act, which deals with assessments in cases of search or requisition, applies to a 'searched person' when the assessment is initiated based on a search conducted on someone else. The assessee, Karina Airlines International Limited, received a notice under Section 153C following a search on an individual, Mr. Harvansh Chawla. The Assessing Officer made additions to the assessee's income, which were partially upheld and partially deleted by the CIT(A), who also made an enhancement to the income. The assessee appealed these decisions.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘D’ NEW DELHI

BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
&
SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER

ITA No.203/Del/2021
(Assessment Year: 2012-13)

Karina Airlines Intenational
Limited, No. 11, Gali No. 5,
Block-A, West Karawal Nagar,
New Delhi.
PAN No. AADCK1912D
Appellant 

Vs. 

ACIT, Circle- 5DCIT
New Delhi.
Respondent

Assessee by Sh. Amit Goel, CA
Revenue by Ms. Aashna Paul, CIT/DR

Date of hearing: 09.06.2021
Pronouncement on 09 .06.2021

ORDER

PER K. NARASIMHA CHARY, JM

Aggrieved the order dated 10.03.2021 passed by the learned Commissioner of Income Tax (Appeals)-24, New Delhi ("Ld. CIT(A)") for the assessment year 2012-13, Karina Airlines International Limited (“the assessee”) filed this appeal.

2. Brief facts of the case are that the assessee is a limited company and is engaged in the business of running of helicopters services. They have filed their return of income under section 139(1) of Income Tax Act 1961 (the Act) on 29 September 2012, declaring an income of INR 2,12,19,096/-. It was processed under section 143(1) of the Act. A search & seizure action under section 132 of the Act was initiated on 7 April 2016 in the case of Sh. Harvansh Chawla. Satisfaction under section 153A of the Act, by the learned Assessing Officer of the searched person (Sh. Harvansh Chawla) was recorded on 29/3/2019. Learned Assessing Officer for the both, searched person and the assessee was same. Learned Assessing Officer recorded his satisfaction in case of assessee on 15/5/2019 and issued notice under section 153C of the Act. In response to the same, the assessee furnished return of income vide letter dated 15/12/2019. Learned Assessing Officer made an addition of Rs. 32,91,052 on account of Receipt of foreign inward remittance, Rs. 2,50,000 on account of non-deduction of TDs and Rs. 2,58,30,576/-on account of debtors written off.

3. Assessee filed appeal before Ld. CIT(A), who out of above additions, deleted addition of Rs 32,91,052/- and confirmed addition of Rs 2,50,000/- and in respect of addition of Rs 2,58,30,576/-, the Ld. CIT(A) allowed relief to the extent of Rs 2,51,30,576/- and confirmed addition to the extent of Rs 7,00,000/-. Apart from this, Ld. CIT(A) made enhancement to income by Rs 2,23,25,000/-.

4. Aggrieved by the said action of the Ld. CIT(A), assessee preferred this appeal on the following grounds:- 

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