Delhi HC quashes Sec 153A Assessments on ground of non-abated Assessments [Read Order]

While considering 28 appeals filed against the orders of the Income Tax Appellate Tribunal (ITAT), a division bench of the Delhi High Court has quashed the assessments made under section 153A of the Income Tax Act, 1961 on the ground of non-abated assessments.

Relying on the decision of a Division Bench of the Court in PCIT vs. Neeta Gutgutia (2017), Mr. Justice Manmohan and Mr. Justice Dinesh Kumar Sharma observed that “the questions of law raised in present appeals have been settled by earlier Division Bench in CIT Vs. Kabul Chawla and assessment of the respondents had attained finality prior to the date of search and no incriminating documents or materials had been found and seized at the time of search. Accordingly, no addition can be made under Section 153A of the Act as the cases of respondents are of non-abated assessments.”

While concluding, the bench added that “Though some of the judgments of this Court have been challenged and are pending adjudication before the Supreme Court, yet there is no stay of the said judgments till date. Consequently, in view of the judgments of the Supreme Court in Kunhayammed and Others Vs. State of Kerala And Another, (2000) 6 SCC 359 and Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association CSI Cinod Secretariat, Madras (1992) 3 SCC 1, the present appeals are dismissed being covered by the judgment passed by the learned predecessor Division Bench.”

To Read the full text of the Order CLICK HERE

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2022 TAXSCAN (HC) 321 , 22.04.2022