The Delhi High Court condoned a 195-day delay in refiling Income Tax Appeal ITA 487/2024. After examining provisions related to search and assessment, the Court held the appeal did not raise substantial questions of law and dismissed it.
Application disposed of; Appeal ITA 487/2024 stands dismissed.
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$~108
PR. COMMISSIONER OF INCOME TAX-1, DELHI .....Appellant Through: Mr. Sanjay Kumar & Ms. Easha, Advocates
versus
M/S C.P. AND ASSOCIATES PVT. LTD. .....Respondent Through: None.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA
O R D E R
% 11.09.2024 CM APPL. 53041/2024 (195 Days Delay in Refiling)
Bearing in mind the disclosures made, the delay of 195 days in refiling the appeal is condoned.
The application shall stand disposed of.
ITA 487/2024
“A. Whether on the facts and circumstances of the Acts, the Ld. ITAT has erred in holding that since no incriminating documents were found during the course of search relating to the relevant year, assessment under Section 143(3) read with Section 153A of the Act could not have been completed?
B. Whether on the fact and circumstances of the case, Ld. ITAT has erred in holding that the AO could not have proceeded to frame assessment under Section 153C in absence of any incriminating materials without appreciating the fact that the provision of the section 153C of the Act, provides for assessment and reassessment
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 00:31:56
of total income of assessee and does not confine the assessment or reassessment to the incriminating documents only?
C. Whether the holding ITAT erred in interpreting section 153C in line with the intention of the legislation in introducing such provision, when the cardinal rule of construction of a statue is to read it literally, which means by giving to the words used by the legislature their ordinary, natural and grammatical meaning unless such reading leads to absurdity and the words are susceptible of another meaning. Whether the ITAT erred in ignoring the judgment of Hon'ble Supreme Court in the case of S. Narayanaswami Vs. G. Panneerselvam & others, 1972 AIR 2284, 1973 SCR(1)172 that" where the statute's meaning is clear and explicit words cannot be interpolated." What is true of the interpretation of an ordinary statute is not any the less true in the case of case of a constitutional provision, and the same rule applies equally to both?
D. Whether on the facts and circumstances of the case, Ld. ITAT has erred in interpreting Section 153A of the Act, when Hon'ble Supreme Court had held in the case of Abhirarn Singh Vs C.D. Commachen (Dead) by Lrs. & Ors on 2ndJan, 2017 that "It is settled law that while interpreting statutes, wherever the language is clear, the intention of the legislature must be gathered from the language used and support from extraneous sources should be avoided?
“3.1 In ground no. 2 of the appeal , the appellant is aggrieved with the action of the Assessing Officer in reopening its assessment by issue of notice u/s 153C. Facts of the case are that a search u/s 132 of the I.T. Act took place in the case of M/s. Shivam Real Estates & Developers, wherein an Annexure AS-50 was seized. This annexure contained an agreement between M/s. Shivam Real Estates & Developers of Jaipur as sellers and M/s. Y.P. Infrastructure Pvt. Ltd., Vikaspuri, New Delhi as buyers for sale of agricultural land by the former to the latter for Rs.5,56,00,000/-. This agreement was later on cancelled and the sum paid to M/s. Shivam Real Estates & Developers was refunded by it. It was found by the department that actually advance of Rs.4,56,00,000/had been paid by M/s. C.P. & Associates Pvt. Ltd. on behalf of M/s. Y.P. Infrastructure Pvt. Ltd. Accordingly, notices u/s 153C were issued both in the cases of M/s. C.P. & Associates Pvt. Ltd. and M/s. Y.P. Infrastructure Pvt. Ltd. The Assessing Officer while
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 00:31:56
issuing the notice u/s 153C has duly recorded his satisfaction. The appellant is emphasizing that no material "belonging" to the appellant was found during the course of search in the case of M/s. Shivam Real Estates & Developers, although the agreement to sell the land by M/s. Shivam Real. Estates & Developers "related to” the appellant.”
YASHWANT VARMA, J.
RAVINDER DUDEJA, J.
SEPTEMBER 11, 2024/ib
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 00:31:56
3 issues framed by the court
Whether the High Court should allow condonation of a 195-day delay in refiling the appeal before ITAT.
Whether the appeal raises substantial questions of law regarding interpretation of Sections 153C and 153A.
Whether assessment and reassessment can proceed under Section 153C in absence of incriminating materials found during search.
Colour shows how this judgement treated each authority
Commissioner of Income-tax vs. Kabul ChawlaFollowed¶26
Commissioner of Income-tax vs. Kabul Chawla [2015 SCC OnLine Del 11555] · Who else cites this
S. Narayanaswami Vs. G. Panneerselvam & othersReferred¶19
S. Narayanaswami Vs. G. Panneerselvam & others, 1972 AIR 2284 · Who else cites this
Abhirarn Singh Vs C.D. Commachen (Dead) by Lrs. & OrsReferred¶20
Abhirarn Singh Vs C.D. Commachen (Dead) by Lrs. & Ors on 2ndJan, 2017
2 provisions across 1 enactments
Pr. Commissioner of Income Tax-1, Delhi
M/s C.P. And Associates Pvt. Ltd.
Yashwant Varma
Ravinder Dudeja
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
