Case Note & Summary
The Revenue filed an appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Mumbai, dated 05 July 2016, which upheld the order of the Commissioner of Income Tax (Appeals) deleting additions made by the Assessing Officer for the block period 01 April 1988 to 13 February 1999. The background of the case involves a survey conducted under Section 133A of the Act at the business premises of M/s. Galaxy Plasto O-Chen Industry Ltd., which belonged to the Vora family. Based on information from the Investigation Wing, the Assessing Officer passed a detailed assessment order on 28 February 2001, making several additions and disallowances to the income of the assessee, Sunil M. Thakkar, for the block period. The CIT(A) allowed the assessee's appeal by deleting the additions under various heads. The Revenue challenged the deletion in respect of five heads before the Tribunal, which upheld the CIT(A)'s order. The legal issue before the High Court was whether the Tribunal was correct in upholding the deletion of additions. The Revenue argued that the Tribunal erred in law, but the Court found that the findings of fact by the Tribunal were based on appreciation of evidence and were not perverse. The Court held that no substantial question of law arose and dismissed the appeal with no order as to costs.
Headnote
A) Income Tax - Block Assessment - Section 158BC, Income Tax Act, 1961 - Substantial Question of Law - The Revenue appealed against the Tribunal's order upholding deletion of additions made by the Assessing Officer for the block period 01.04.1988 to 13.02.1999. The Court held that no substantial question of law arose as the findings of fact by the Tribunal were based on appreciation of evidence and were not perverse. (Paras 1-4)
B) Income Tax - Survey - Section 133A, Income Tax Act, 1961 - Seized Documents - The survey conducted at the business premises of M/s. Galaxy Plasto O-Chen Industry Ltd. revealed documents leading to the block assessment of the assessee. The Court noted that the Tribunal had correctly appreciated the evidence and deleted the additions. (Paras 3.1-3.2)
Issue of Consideration
Whether the Income Tax Appellate Tribunal was correct in upholding the deletion of additions made by the Assessing Officer under Section 158BC of the Income Tax Act, 1961 for the block period 1988-1999?
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arose. No order as to costs.
Law Points
- Block assessment under Chapter XIV-B of Income Tax Act
- 1961
- Section 158BC
- Section 260A
- substantial question of law
- survey under Section 133A
- additions based on seized documents
Case Details
2020 LawText (BOM) (02) 22
INCOME TAX APPEAL NO. 1499 OF 2017
Ujjal Bhuyan, Milind N. Jadhav
Sham Walve a/w. Pritish Chaterji
Pr. Commissioner of Income Tax - 20, Mumbai
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Nature of Litigation
Income Tax Appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal.
Remedy Sought
Revenue sought to challenge the Tribunal's order upholding deletion of additions made by the Assessing Officer.
Filing Reason
Revenue was aggrieved by the Tribunal's order dated 05 July 2016 upholding the CIT(A)'s deletion of additions for the block period.
Previous Decisions
Assessing Officer passed assessment order on 28 February 2001 making additions; CIT(A) allowed assessee's appeal deleting additions; Tribunal upheld CIT(A)'s order on 05 July 2016.
Issues
Whether the Tribunal was correct in upholding the deletion of additions made by the Assessing Officer under Section 158BC of the Income Tax Act, 1961 for the block period 1988-1999?
Submissions/Arguments
Revenue argued that the Tribunal erred in law in upholding the deletion of additions.
Assessee supported the Tribunal's order.
Ratio Decidendi
The findings of fact by the Tribunal were based on appreciation of evidence and were not perverse; hence, no substantial question of law arose under Section 260A of the Income Tax Act, 1961.
Judgment Excerpts
This appeal has been preferred by the Revenue under Section 260A of the Income Tax Act, 1961 against the order dated 05th July 2016 passed by the Income Tax Appellate Tribunal, 'J' Bench, Mumbai in Income Tax (SS) Appeal No.173/Mum/2006 for the block period 01st April 1988 to 13th February 1999.
The Assessing Officer passed a detailed assessment order dated 28th February 2001 in respect of the block period and made several additions and dis-allowances to the income of the assessee for the block period.
The brief facts relevant for the purpose of deciding the present appeal are as follows :
On the basis of information received from the Investigation Wing of the Income Tax Department in the case of M/s. Galaxy Plasto O-Chen Industry Ltd., it was revealed that the said company belonged to one Vora family comprising of three brothers, viz Naresh B. Vora, Sudhir B. Vora and Nitin B. Vora.
Under the provisions of Section 133A of the Act, a survey was conducted at the business premises of the above company on 04th February 1999.
The Tribunal by its order dated 05th July 2016 upheld the order passed by CIT (A).
Procedural History
Assessing Officer passed assessment order on 28 February 2001. Assessee appealed to CIT(A), who allowed the appeal deleting additions. Revenue appealed to ITAT, which upheld CIT(A)'s order on 05 July 2016. Revenue then filed the present appeal under Section 260A before the High Court.
Acts & Sections
- Income Tax Act, 1961: 260A, 158BC, 133A
