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| The Tax Publishers2021 TaxPub(DT) 4198 (Mum-Trib) INCOME TAX ACT, 1961
Section 153A
As 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 in the absence of incriminating material found during search.
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Search and seizure - Assessment under section 153A - No incriminating material found during search - Unabated assessment
AO, pursuant to search conducted at assessee's premises, framed assessment under section 153A and disallowed exemption claim under section 10(38) as regards long-term capital gain on sale of shares listed on stock exchange. Assessee challenged this on the ground that no incriminating material was found during search. Held: No incriminating material was found during search in relation to purchases and sales of penny stocks and AO relied on the general investigation that assessee had made purchases and sales in penny stocks on the basis of documents which were already on records and made huge addition of bogus long-term capital gain. As 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 and, therefore, addition was deleted.
Followed:Smt. Kalpana Mukesh Ruia v. Dy. CIT ITA No. 6519/M/2019 Assessment year 2012-13 & Ors. Order, dated 31-12-2020 and CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 & 2014-15
IN THE ITAT, MUMBAI BENCH
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