| The Tax Publishers2019 TaxPub(DT) 4664 (Jp-Trib) : (2019) 074 ITR (Trib) 0109 INCOME TAX ACT, 1961
Section 153A r/w ss. 68, 147 $ 148
Without incriminating material if the material and evidence received by the AO during the course of reassessment proceedings under section 153A was not available with the AO at the time of passing the assessment under section 143(3) then, it was open to AO to initiate the proceeding under section 147/148 instead of making the addition in the proceeding under section 153A.
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Search and seizure - Assessment under section 153A - Addition of unexplained cash credits - No incriminating matter found--Informations received from Investigation Wing
AO after initiation of proceeding under section 153A received the information from Investigation Wing, Mumbai and based on the said information the AO had made the addition on account of share application money by treating the same as unexplained of cash credit. The question before this Tribunal limited about the sustainability of the addition made by the AO based on the material which was received by him subsequent to the search and seizure action in the case of the assessee but gathered during the search and seizure action in case of the Shri P Kumar Jain group. Held: There was no quarrel the AO was bound to proceed under section 153A in pursuant to the search and seizure action however, if there is no incriminating material to reassess the income of the assessee then the AO legally cannot make the addition based on the information and evidence received from the Investigation Wing, Mumbai. But, at the same time he could initiate the proceeding under section 147/148 to reassess the income of the assessee on the basis of the information and evidence received from the Investigation Wing, Mumbai. There was no error or illegality in the impugned order of the CIT(A) in deleting the addition made by the AO while passing the order under section 153A. Without incriminating material but if the material and evidence received by the AO during the course of reassessment proceedings under section 153A which was not available with the AO at the time of passing the assessment under section 143(3) then, it is open to the AO to initiate the proceeding under section 147/148 instead of making the addition in the proceeding under section 153A.
Relied:Saumya Construction (P.) Ltd. 2016 TaxPub(DT) 3466 (Guj-HC) : (2017) 81 taxmann.com 292 (Guj), Sunrise Finlease (p.) Ltd. 2017 TaxPub(DT) 5548 (Guj-HC) : (2018) 89 taxmann.com 1 (Guj), Deepak Kumar Agarwal 2017 TaxPub(DT) 4400 (Bom-HC) : (2017) 86 taxmann.com 3 (Bom), Jignesh P. Shah (2018) 99 Taxmann.com 111 (Bom) : 2018 TaxPub(DT) 6393 (Bom-HC), Harjeev Aggarwal 2016 TaxPub(DT) 1836 (Del-HC) : (2016) 70 taxmann.com 95 (Del), Best Infrastructure India Pvt. Ltd. ITA Nos. 1698 to 1701 & 1753/Del/2014, Smt. Aruna Sankhla v. DCIT in 2019 TaxPub(DT) 4594 (Jp-Trib) and Jai Steel India v. ACIT 2013 TaxPub(DT) 1647 (Raj-HC) : (2013) 259 CTR 281 (Raj)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, JAIPUR BENCH
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