| The Tax Publishers2019 TaxPub(DT) 4896 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
There was no dispute that papers relied upon by AO were not found during search at the premises of assessee and therefore, said papers could not be the basis for making any addition in assessment completed section 153A read with section 143(3) as regular assessment for the year under consideration remained unabated as on date of search.
|
Search and seizure - Assessment under section 153A - No incriminating material found during search -
During the course of proceedings under section 153A/143(3) on the basis of papers confronted to assessee during the course of search, vide various notices/questionnaires required assessee to furnish information/documents in respect of alleged bank account maintained with HSSBC, Geneva, Assessee repeatedly denied having maintained any such bank account with HSBC, Geneva and contended that no adverse inference could be drawn against the assessee merely on the basis of some loose unauthenticated pieces of paper in the possession of the Revenue shown to assessee during the course of search, source whereof was also not known/credible. AO rejected this and made addition under section 69.Held: Regular assessment for the years under consideration remained unabated as on date of search. In respect of non-abated assessments addition should be made only on the basis of any incriminating document found during search.There was no dispute that papers relied upon by AO were not found during search at the premises of assessee and, therefore, said papers could not be the basis for making any addition in assessment completed section 153A read with section 143(3) for the years under consideration. Moreover, if at all the amount on the basis of papers relid upon by revenue could only be taxed in year of search, when said papers were, for the first time, confronted to the assessee. However, said papers actually referred to creation of account in earlier assessment year, much prior to assessment year 2006-07 and nowhere showed any amount being deposited in any of the assessment years beginning with assessment year 2006-07. Therefore, neither in assessment year 2006-07 nor in assessment year 2007-08, additions could have been made by AO under section 69.
Relied:CIT-III, Pune v. Sinhgad Technical Education Society (2017) 397 ITR 344 (SC) : 2017 TaxPub(DT) 3941 (SC), Pr. CIT Central-2 New Delhi v. Meeta Gutgutia Prop. M/s. Ferns 'N' Petals (2017) 395 ITR 526 (Del) : 2017 TaxPub(DT) 1767 (Del-HC) and CIT (Central)--III v. Kabul Chawla (2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 153A
 SUBSCRIBE FOR FULL CONTENT
|