Itta/368/2014 Of The Commissioner Of Income Tax [Central] v. M/S Sreelalitha Constructions

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A No.368 of 2014 DATE: 18.06.2014 Between:The Commissioner of Income Tax (Central),Hyderabad.… AppellantAndM/s. Sree Lalitha Constructions,Visakhapatnam. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.368 of 2014 ORDER:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against theorder of the learned Tribunal dated 13.12.2013 on the followingsuggested questions of law: 1.Whether the ITAT was correct in holding that theproceedings initiated u/s 153A was bad in law andwhether the ITAT was correct in holding that theAO has no jurisdiction for assessing the income ofthe assessee?proceedings initiated u/s 153A was bad in law andwhether the ITAT was correct in holding that theAO has no jurisdiction for assessing the income ofthe assessee? 2. Whether the ITAT was correct in observing thatsearch assessments cannot be done withoutincriminating materials?search assessments cannot be done withoutincriminating materials? The judgment of the learned Tribunal was rendered coveringthe following assessment years 2004-05 and 2010-11. However, thepoint, which is raised in this appeal relates to the assessment year2006-07. We have heard Sri J.V. Prasad, learned counsel for theappellant and have gone through the relevant portion of the impugnedjudgment. We notice that the Tribunal, on fact, found that assessmentwas done on the basis of the estimated income. It was found againthat there is no incriminating material and in the course of search, nobooks of accounts and vouchers were found and it was admitted thatthe M.D. consequent to the completion of the assessments, therelevant books of accounts and vouchers were shifted to a godownand they were not able to locate the relevant books of accounts. We fail to understand when the assessment was made on the estimatedincome, how there can be relevancy of books of accounts and for thatmatter, non-availability of the books of accounts could be a factor toexercise the jurisdiction under Section 153-C of the Income Tax Act,1961. The learned Tribunal, on appreciation of fact, correctlyconcluded that such exercise was not called for. We, therefore, do not find any infirmity for differing with theimpugned judgment and order of the learned Tribunal. The appeal is accordingly dismissed. Consequently, the miscellaneous petitions, if any pending, shallalso stand dismissed. No costs. _________________ K.J. SENGUPTA, CJ Date: 18.06.2014va/pnb _________________ SANJAY KUMAR, J