DCIT v. Venus Overseas (P). Ltd.

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The Tax Publishers2021 TaxPub(DT) 2541 (Del-Trib)

INCOME TAX ACT, 1961

Section 153A

Trial balance, which pertained to assessment order for assessment year 2011-12, could not be treated as incriminating material because entries in trial balance were found to be part of financial statements of assessee. After thorough scrutiny the returned income of assessee was accepted as such and since assessment for the year under consideration remained unabated as on date of search, therefore, same could not be interfered with while framing search assessment under section 153A.

Search and seizure - Assessment under section 153A - No incriminating material unearthed during search - Unabated assessment

AO, pursuant to search conducted at assessee's premises framed assessment under section 153A and made addition under section 68 on account of unexplained share capital and premium. Assessee contended that alleged incriminating document, i.e., trial balance was used for framing assessment in the garb of incriminating material whereas same was accepted as such in assessment year 2011-12. Held: Trial balance, which pertained to assessment order for assessment year 2011-12, could not be treated as incriminating material because entries in trial balance were found to be part of financial statements of assessee. After thorough scrutiny the returned income of assessee was accepted as such and since assessment for the year under consideration remained unabated as on date of search, therefore, same could not be interfered with while framing search assessment under section 153A.

Followed:Kabul Chawla in (2015) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC) and Meeta Gutgutia Prop. M/s. Ferns 'N' Petals in ITA No. 306 to 308/2017, dated 25-5-2017 : 2017 TaxPub(DT) 1767 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2006-07 to 2010-11

IN THE ITAT, DELHI BENCH