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| The Tax Publishers2021 TaxPub(DT) 5610 (Del-Trib) INCOME TAX ACT, 1961
Section 153C
Assessment which remained unabated as on date of search could not be interfered with while framing assessment under section 153C in the absence of incriminating material unearthed during search.
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Search and seizure - Assessment under section 153C - No incriminating material found during search - Unabated assessment
AO, pursuant to search conducted in case of certain group companies initiated proceedings under section 153C in assessee's case and made addition on substantive basis in assessee's hands. Assessee challenged this on the ground of no incriminating material found during search. Held: Since satisfaction note was recorded on 24-9-2018 and notice under section 153C was issued on 25-9-2018, as such, assessment proceedings were final in respect of return of income filed on 8-2-2016 for the relevant assessment year, namely, 2015-16 on the date of recording of such satisfaction note. Therefore, assessment remained unabated as on date of search and same could not be interfered with while framing assessment under section 153C in the absence of incriminating material unearthed during search. In the case of assessee, all the documents which formed part of satisfaction note were duly recorded and disclosed in the return of income filed prior to recording of satisfaction note or even thedate of search. Therefore, same could not be considered as incriminating material and, therefore, addition was deleted.
Relied:CIT v. Singhad Technical Education Society (2017) 397 ITR 344 (SC) : 2017 TaxPub(DT) 3941 (SC), Pr. CIT v. Param Dairy Ltd. in ITA No. 37/2021 : 2021 TaxPub(DT) 936 (Del-HC), Asstt. CIT v. Realtech Construction (P) Ltd. [ITAT Delhi) in ITA No. 6569 (Del) of 2016 : 2020 TaxPub(DT) 2535 (Del-Trib) and CIT v. RRJ Securities Ltd. (2015) 380 ITR 612 (Del-HC) : 2015 TaxPub(DT) 4278 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
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