2022 (5) TMI 1081

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....he assessment order passed by ITO, Ward-49(2), New Delhi u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') dated 29.03.2016. 2. All the three appeals are being disposed of by the consolidated order since common issue is involved. Though the assessee belongs to New Delhi, the appeals have been filed in the Kolkata Zone jurisdiction of ITAT because of centralization of all the three cases with the Central Circle-2(3), Kolkata vide order u/s. 127(2) of the Act dated 04.05.2018 owing to a search conducted in the Kwality Group on 22.08.2017 which included the assessees also. 3. Grounds of appeal taken by the department in ITA 965/Kol/2019 are reproduced as under which are common in all the three appeals exc....

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....d office in West Delhi but it is carrying out its operations through various business centre located at different villages of Haryana. The assessee filed her return of income declaring a total income of Rs. 11,63,440/- on 01.10.2013. In the course of assessment, the Ld. AO conducted certain enquiries at the business addresses of the assessee and held that assessee is not engaged in any business activity of milk/dairy business. The Ld. AO also held that transactions of sale and purchase were not genuine business transactions which have been made for ulterior motive of the assessee. By holding this and in absence of any other basis, the Ld. AO assessed the income generated by the assessee through these sham transactions by estimating net prof....

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.... the impugned year, the ld. counsel pressed and submitted that the present appeals by the department against the assessment order passed u/s. 143(3) of the Act have become infructuous. The ld. counsel submitted a copy of assessment order dated 28.12.2019 passed u/s. 144 r.w.s. 153A of the Act in the case of Smt. Promila Chandhoke to substantiate his contention. On this submission for the instant appeals becoming infructuous, we do not subscribe to it owing to clarification contained in CBDT Circular No. 7/2003 dated 05.09.2003 containing explanatory notes on provisions relating to direct taxes vide para 65.5-"...It is clarified that the appeal, revision or rectification proceedings pending on the date of initiation of search under section 1....

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....d deputed his departmental Inspector attached to his office to serve the notice under section 142(1) alongwith summons under section 131 of the Act and also to verify the physical identity of the instant assessee." 9. We note that the date of search and seizure operation in the case of Kwality Group including the present assessees is 22.08.2017. The date of impugned appellate order passed by the Ld. CIT(A) against the assessment order made u/s. 143(3) is 31.12.2018 which is subsequent to the date of conduct of search and seizure operations and was pending at the time of conduct of search. The subsequent development of search & seizure operations in the case of assessee herself ought to have been factored in by the Ld. CIT(A) while disposin....