PARVEEN KUMAR KAPOOR, FARIDABAD DCIT, CENTRAL CIRCLE- 2, FARIDABAD

The Income Tax Appellate Tribunal allowed both appeals filed by Parveen Kumar Kapoor against the DCIT for assessment years 2009-10 and 2010-11. The tribunal found that no incriminating material was discovered during the search operations relevant to these assessment years. Consequently, the additions made by the Assessing Officer were deemed void ab initio, and the appeals were allowed in favour of the assessee.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘F’ NEW DELHI
BEFORE SHRI R. K. PANDA ACCOUNTANT MEMBER
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER
I.T.A. No. 2657/DEL/2018 (A.Y 2009-10)
I.T.A. No. 2658/DEL/2018 (A.Y 2010-11)
(THROUGH VIDEO CONFERENCING)

Parveen Kumar Kapoor,
C/o. RRA Tax India, D-28,
South extension, Part-1
New Delhi
ABMPK7969F
(APPELLANT)

Vs

DCIT
Central Circle-2
Faridabad
(RESPONDENT)

Appellant by Sh. Somil Agarwal, Adv
Respondent by Sh. Sushma Singh, CIT DR
Date of Hearing 05.07.2021
Date of Pronouncement 26.07.2021

ORDER

These two appeals are filed by the assessee against order dated 19/01/2018 passed by CIT(A)-2, Gurgaon, for assessment year 2009-10 & 2010-11 respectively.

2. By virtue of the authorization of the Director of income-tax (Investigation), Delhi, under section I32(1)(A) in the case of the assessee, the residential as well as business/office premises of M/s SRS Group, were subjected to search and seizure operations on 9.05.2012. Assessment jurisdiction over the assessee has since been transferred to this circle passing an order u/s 127 of the Income Tax Act, 1961 by the Commissioner of Income Tax Faridabad. During the previous year relevant to the A.Y. 2009-10, the assessee was drawing income from salary and income from house property.

3. The Assessing Officer held that the assessee failed to provide documentary evidence of those bank statement and accordingly made addition of Rs. 1,26,00,000/- for the Assessment Year 2009-10 as income from undisclosed sources.

4. From the above, it can be observed that no proceedings were pending on the date of search for Assessment Year 2010-11. The date of filing original returns u/s 139(1) was on 6/8/2010, the date of search was 9/5/2012. The return filed u/s 153A was on 10/9/2013 and due date of issuance of notice was 30th September, 2010. As the date of search is 9/5/2012. Thus, in Assessment Year 2010-11 as well no proceedings were pending as on the date of search. Thus, the applicability of decision of the Hon’ble Delhi High Court in case of Kabul Chawla is relevant in the present case as no incriminating material was found and there is no mention in the assessment order as well as in the order of the CIT(A) relating to the reliance of any material for making specific addition in the assessment. Thus, assessment
itself becomes void ab initio. In In result, both the appeals of the assessee are allowed.

5. In result, both the appeals of the assessee are allowed.

Order pronounced in the Open Court on this 26th Day of July, 2021

Please find attached the enclosed file for the full judgement