INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - No incriminating material found -

Revenue filed this appeal against the order passed by CIT(A) arising out of the order passed by the ACIT under section 153A. CIT(A) deleted the addition made by AO on account of gain on sale of investment. CIT(A) passed the order quashing the reassessment order, relying upon the order passed in the case of the brother of assessee which was confirmed by Tribunal in appeal preferred by the Revenue. Held: When capital gain earned from the sale of shares was already recorded in the books of accounts and no “incriminating material” was found during the course of search operation, addition made on the basis of sole statement of brother of assessee was, not sustainable in the eyes of law, particularly when all the transactions qua sale of shares and capital gain earned was duly recorded in the books of account. Following the decision of Tribunal in assessee's own case for assessment year 2012-13 on the identical issue, addition was liable to be deleted.

Relied:Pr. CIT Central-2 New Delhi v. Meeta Gutgutia, Prop. M/s. Ferns 'N' Petals 2017 TaxPub(DT) 1767 (Del-HC), Smt. Dayawanti Through Smt. Sunita Gupta, (legal heir) , Ajay Gupta v. CIT 2016 TaxPub(DT) 4888 (Del-HC) E.N. Gopakumar v. CIT (Central) 2016 TaxPub(DT) 4661 (Ker-HC) CIT (Central) -III v. Kabul Chawla (2015) 61 taxman.com 412 (Del) : (2015) 234 taxmann 300 (Del) : 2015 TaxPub(DT) 3486 (Del-HC) Asst. CIT, Central Circle 04, New Delhi v. Sundeep Gupta R/o. A-43, Phase-II, Noida Extension [ITA No.519/Del./2017, dt. 29-7-2021] and ACIT Central Circle 04, New Delhi v. Late Smt. Bhawna Gupta (Through Legal Heir, Sameer Gupta), Smt. Anita Gupta 2019 TaxPub(DT) 5667 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2011-12

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