Calcutta High Court
Mbl Infrastructures Limited vs Principal Commissioner Of Income ... on 26 April, 2023
OD-5
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION [INCOME TAX]
ORIGINAL SIDE
ITA/62/2021
MBL INFRASTRUCTURES LIMITED
VS.
PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, KOLKATA
BEFORE :
THE HON'BLE ACTING CHIEF JUSTICE T.S. SIVAGNANAM
And
THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA
Date : 26th April, 2023
Appearance :
Mr. J.P. Khaitan, Sr. Adv.
Mr. Sauyma Kejriwal, Adv.
Ms. Ananya Routy, Adv.
Ms. Pritha Basu, Adv.
Ms. Ankita Agrahari, Adv
... for appellant
Ms. Smita Das De, Adv.
... for respondent
The Court : This appeal has been filed by the assessee challenging the
order passed by the Income Tax Appellate Tribunal. The legal issue involved in
the instant case is the scope of assessment under Section 153A of the Income
Tax Act. The legal issue which has been raised by the revenue has been
answered by the Hon'ble Supreme Court in the case of Principal Commissioner
of Income Tax, Central-3 vs. Abhisar Buildwell [P] Ltd. reported in [2023] 149
taxmann.com 399 [SC]. The Hon'ble Supreme Court has summarised the legal
position in paragraph 11 of the judgment and in paragraph 13 the Hon'ble
Supreme Court has held that it is an agreement with a view taken by the Delhi
High Court in the case of Commissioner of Income Tax [Central]-III vs. Kabul
Chawla reported in [2016] 380 ITR 573 [Delhi] and that of the High Court of
Gujarat in the case of Principal Commissioner of Income Tax-4 vs. Saumya
Construction reported in [2016] 387 ITR 529 [Gujarat]. In the penultimate
paragraph of the judgment namely, in paragraph 14 the conclusion has been
recorded, which is as follows :
"14. In view of the above and for the reasons stated above, it is concluded
as under:
i] that in case of search under Section 132 or requisition under Section
132A, the AO assumes the jurisdiction for block assessment under section 153A;
ii] all pending assessments/reassessments shall stand abated;
iii] in case any incriminating material is found/unearthed, even, in case of
unabated/completed assessments, the AO would assume the jurisdiction to
assess or reassess the 'total income' taking into consideration the incriminating
material unearthed during the search and the other material available with the AO
including the income declared in the returns; and
iv] in case no incriminating material is unearthed during the search, the AO
cannot assess or reassess taking into consideration the other material in respect
of completed assessments/unabated assessments. Meaning thereby, in respect of
completed/unabated assessments, no addition can be made by the AO in absence
of any incriminating material found during the course of search under Section 132
or requisition under Section 132A of the Act, 1961. However, the
completed/unabated assessments can be re-opened by the AO in exercise of
powers under Sections 147/148 of the Act, subject to fulfilment of the conditions
as envisaged/mentioned under sections 147/148 of the Act and those powers are
saved.
The question involved in the present set of appeals and review petition is
answered accordingly in terms of the above and the appeals and review petition
preferred by the Revenue are hereby dismissed. No costs. "
In the light of the above decision, the appeal stands disposed of in terms of
the order passed by the Hon'ble Supreme Court and the question of law stands
answered accordingly.
(T.S. SIVAGNANAM, J.)
ACTING CHIEF JUSTICE
(HIRANMAY BHATTACHARYYA, J.)
pkd/SN.
AR(CR)
