Dy. CIT v. Shayona Land Corporation

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The Tax Publishers2020 TaxPub(DT) 3855 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 153A

If in relation to any assessment year, no incriminating material is found, no addition or disallowance can be made in relation to that assessment year in exercise of power under section 153A.

Search and seizure - Assessment under section 153A - Absence of incriminating material during search -

Search action under section 132 was carried out and assessee was issued notice under section 153A. Assessee developed certain real estate projects. AO alleged that assessee did not disclose on-money receipt on sale of units of projects. Assessee contended that no incriminating material/document relating to allegations was found during search and survey proceedings and no detail of such material was provided. Held: Following decision of Saumya Construction P. Ltd. (2016) 387 ITR 529 (Guj) : 2016 TaxPub(DT) 3466 (Guj-HC) wherein it was held that, if in relation to any assessment year no incriminating material was found no addition or disallowance could be made in relation to that assessment year in exercise of power under section 153A. Thus, addition made by AO was invalid.

Followed:Pr. CIT v. Saumya Construction P. Ltd. (2016) 387 ITR 529 (Guj) : 2016 TaxPub(DT) 3466 (Guj-HC)

REFERRED : Brij Bhushan Lal Parduman Kumar, Etc. v. CIT, Haryana, Himachal Pradesh and New Delhi-III (And Other Appeals) (1978) 115 ITR 524 (SC) : 1978 TaxPub(DT) 1031 (SC) State of Orissa v. Maharaja Shri BP Singh Deo (1970) 76 ITR 690 (SC) : 1970 TaxPub(DT) 0254 (SC) State Of Kerala v. C. Velukutty (1966) 60 ITR 239 (SC) : 1966 TaxPub(DT) 0268 (SC) Lalchand Bhagat Ambica Ram v. CIT (1959) 37 ITR 288 (SC) : 1959 TaxPub(DT) 0181 (SC) Raghubar Mandal Harihar Mandal v. The State of Bihar (1957) 8 STC 770 (SC) Dhakeswari Cotton Mills Limited v. CIT (1954) 26 ITR 775 (SC) : 1954 TaxPub(DT) 0123 (SC) Action Electricals v. Dy. CIT. (2002) 258 ITR 188 (Del) : (2003) 132 Taxman 640 (Delhi) : 2002 TaxPub(DT) 1501 (Del-HC) RVS and Sons Dairy Farm v. CIT. (2002) 257 ITR 764 (Mad) : (2003) 130 Taxman 615 (Mad.) : 2002 TaxPub(DT) 0870 (Mad-HC) CIT v. Vikram Plastics & Ors. (1999) 239 ITR 161 (Guj.) : 1999 TaxPub(DT) 0810 (Guj-HC) Aluminium Industries (P) Ltd. v. CIT (1995) 80 Taxman 184 (Gau) : 1995 TaxPub(DT) 1034 (Gau-HC) Kamal Kumar Saharia v. CIT (1995) 216 ITR 2I7 (Gau) : (1995) 73 Taxman 299 (Gau.) : 1995 TaxPub(DT) 0265 (Gau-HC) Amitbhai Gunvantbhai v. CIT (1981) 129 ITR 373 (Guj) : 1981 TaxPub(DT) 0632 (Guj-HC) International Forest Co. v. CIT (1975) 101 ITR 721 (J. & K.) : 1975 TaxPub(DT) 0299 (J&K-HC) M Durai Raj v. CIT, Ernakulam. (1972) 83 ITR 484 (Ker) : 1972 TaxPub(DT) 0128 (Ker-HC) Ramachandra Ramnivas v. State of Orissa (1970) 25 STC 501 (Orissa) Chouthmal Agarwalla v. CIT (1962) 46 ITR 262 (Assam) : 1962 TaxPub(DT) 0285 (Assam-HC) and Asstt. CIT v. Budhalal & Co. (2O11) 10 taxmann.com 52 (Ahd.)