Ita/59/2021Mbl Infrastructures Limited v. Principal Commissioner Of Income Tax, Central-1, Kolkata

OD–4 IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION ORIGINAL SIDE ITA/59/2021MBL INFRASTRUCTURES LIMITED VS. PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, KOLKATA BEFORE : THE HON’BLE ACTING CHIEF JUSTICE T.S. SIVAGNANAM AndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 26[th] 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 appellantMs. Smita Das De, Adv.… for respondent The Court : This appeal has been filed by the assessee challenging theorder passed by the Income Tax Appellate Tribunal. The legal issue involved inthe instant case is the scope of assessment under Section 153A of the IncomeTax Act. The legal issue which has been raised by the revenue has beenanswered by the Hon’ble Supreme Court in the case of Principal Commissionerof Income Tax, Central-3 vs. Abhisar Buildwell [P] Ltd. reported in [2023] 149taxmann.com 399 . The Hon’ble Supreme Court has summarised the legalposition in paragraph 11 of the judgment and in paragraph 13 the Hon’bleSupreme 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. KabulChawla reported in [2016] 380 ITR 573 [Delhi] and that of the High Court ofGujarat in the case of Principal Commissioner of Income Tax-4 vs. SaumyaConstruction reported in [2016] 387 ITR 529 [Gujarat]. In the penultimateparagraph of the judgment namely, in paragraph 14 the conclusion has beenrecorded, which is as follows : “14. In view of the above and for the reasons stated above, it is concludedas under: i] that in case of search under Section 132 or requisition under Section132A, 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 ofunabated/completed assessments, the AO would assume the jurisdiction toassess or reassess the ‘total income’ taking into consideration the incriminatingmaterial unearthed during the search and the other material available with the AOincluding the income declared in the returns; and iv] in case no incriminating material is unearthed during the search, the AOcannot assess or reassess taking into consideration the other material in respectof completed assessments/unabated assessments. Meaning thereby, in respect ofcompleted/unabated assessments, no addition can be made by the AO in absenceof any incriminating material found during the course of search under Section 132or requisition under Section 132A of the Act, 1961. However, thecompleted/unabated assessments can be re-opened by the AO in exercise ofpowers 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 aresaved. The question involved in the present set of appeals and review petition isanswered accordingly in terms of the above and the appeals and review petitionpreferred by the Revenue are hereby dismissed. No costs. “ In the light of the above decision, the appeal stands disposed of in terms ofthe order passed by the Hon’ble Supreme Court and the question of law standsanswered accordingly. (T.S. SIVAGNANAM, J.) ACTING CHIEF JUSTICE (HIRANMAY BHATTACHARYYA, J.) pkd/SN.AR(CR)