INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - No incriminating material found during search proceedings -

Assessee filed appeal against the order of CIT(A) upholding impugned addition being 40% of purchase disallowed of CBT Bars on the ground that since no incriminating material relating to the alleged bogus purchase was found during the search at its premises and addition was made only on the basis of 3rd party information. Held: This was an admitted fact the genuineness of the purchase of CTD bars was doubted on the basis of the investigation carried out by the investigation wing independently and no incriminating material had been referred during the assessment proceedings which was found during the course of search. Further, Assessment year 2006-07 and 2007-08 were non-abated assessment since the time limit of issuance of notice under section 143(2) expired before the date of conduct of search. For such non-abated assessment additions could be made only if incriminating material is found during search proceedings as held in the case of CIT v. Kabul Chawla [(2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC)]. Thus, in view of CIT v. Kabul Chawla [(2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC)], the addition for assessment years 2006-07 and 2007-08 was deleted.

Followed:CIT v. Kabul Chawla [(2016) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC)].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05 to 2010-11

INCOME TAX ACT, 1961

Section 69

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