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| The Tax Publishers2021 TaxPub(DT) 3189 (Chen-Trib) INCOME TAX ACT, 1961
Section 153A
Although AO referred few documents found and seized during the course of search, but those documents were, in fact, confirmation letters obtained from loan creditors in connection with unsecured loans taken and disclosed in books of account prepared for the relevant assessment years. Therefore, said documents could not be treated as incriminating material found as a result of search and since assessment for the concerned assessment year remained unabated/concluded as on the date of search, additions made towards unsecured loans without reference to any incriminating materials could not be sustained under law.
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Search and seizure - Assessment under section 153A - Addition not based on incriminating material found 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 unsecured loans. Assessee challeng this on the ground of no incriminating material found during search. Held: AO made additions towards unsecured loans on the basis of regular return of income filed by assessee for the relevant assessment years without reference to any incriminating material found as a result of search. Although, AO referred few documents found and seized during the course of search, but those documents were, in fact, confirmation letters obtained from loan creditors in connection with unsecured loans taken and disclosed in books of account prepared for the relevant assessment years. Therefore, said documents could not be treated as incriminating material found as a result of search to make addition towards unsecured loans taken and declared in regular return of income filed for relevant assessment year. As assessment for the concerned assessment year remained unabated/concluded as on the date of search, additions made towards unsecured loans without reference to any incriminating materials could not be sustained under law.
Followed:M. Kiran Kumar in ITA Nos. 1055 & 1054/Chny/2018, CIT v. Continental Warehousing Corporation (2015) 374 ITR 645 (Bom) : 2015 TaxPub(DT) 2182 (Bom-HC) and All Cargo Global Logistics Ltd. v. Dy. CIT (2012) 147 TTJ 513 (Mum-Trib)(SB) : (2012) 18 ITR 106 (Mum)(SB) : 2012 TaxPub(DT) 2464 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, CHENNAI BENCH
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