| The Tax Publishers2019 TaxPub(DT) 1269 (Kol-Trib) INCOME TAX ACT, 1961
Section 153A
Since none of these material gathered by AO could be categorized as incriminating material found during search and since on the date of search, no assessment for the concerned year was pending, no addition could be made. While framing assessment under section 153A.
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Search and seizure - Assessment under section 153A - No incriminating material discovered during search -
AO, pursuant to search conducted at assessee's premises, initiated proceedings under section 153A and made addition based on statements recorded from various entry operators during search and seizure operations at their premises and a cash trail prepared by AO during post search enquiry. Held: As regards alleged statements recorded from entry operators, only a general reference was made that there were certain statements recorded from various entry operators by investigation wing. No opportunity to cross-examine any these parties was provided to assessee. Coming to the alleged cash trail, there was no evidence, whatsoever, to suggest that cash has been routed from the assessee company or any cash was deposited by the assessee in bank account of a third party. Thus, none of these material gathered by AO could be categorized as incriminating material found during search and since on the date of search, no assessment for the concerned year was pending, no addition could be made.
Followed:CIT v. Kabul Chawla (2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC).
REFERRED : Kishinchand Chellaram v. CIT (1980) 125 ITR 713 (SC) : 1980 TaxPub(DT) 1130 (SC) , Pr. CIT v. Kurele Paper Mills Pvt. Ltd. [SLP (C) No. 34554 of 2015, dt. 7-12-2015], CIT v. Eastern Commercial Enterprises (1994) 210 ITR 103 (Cal-HC) : 1994 TaxPub(DT) 0899 (Cal-HC) and CIT v. IBC Knowledge Park (P) Ltd. (2016) 385 ITR 346 (Karn) : 2016 TaxPub(DT) 2423 (Karn-HC).
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, KOLKATA BENCH
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