Alankit Imaginations Limited vs. DCIT, Central Circle 28

Parties Involved

Facts Summary

A search and seizure action under section 132 of the Income-tax Act, 1961 was carried out on the Alankit group of cases on 18.10.2019. Documents/incriminating material found during the search related to a person other than the searched person were found and accordingly, the cases of the Alankit group were centralized to the jurisdiction of the Assessing Officer (AO) by a centralization order passed under Section 127 of the Act. Based on the notices issued, the assessee filed its original return of income declaring an income of Rs.6,81,320/-. Subsequently, notices under Section 143(2) and 142(1) were issued and served on the assessee. The AO issued further notices to the assessee under Section 142(1) of the Act. Based on the incriminating material found during the search conducted in group cases, the assessment was initiated and completed under Section 153C of the Act, and an addition under Section 68 was made to the extent of Rs.44,46,054/-.…

Legal Issues

• 1. Whether the notice issued under Section 143(2) of the Act and the assessment order passed under Section 143(3) read with Section 153C of the Income Tax Act, 1961 by the AO are fundamentally flawed, being without jurisdiction, barred by limitation, and passed in violation of the statutory framework governing such proceedings?
• 2. Whether the seized material has any bearing on the determination of the total income of the assessee?
• 3. Whether the approval granted under Section 153 D of the Act for passing the assessment order under Section 153C is valid?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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