The Tax Publishers2020 TaxPub(DT) 5499 (Del-HC) : (2021) 431 ITR 0237

INCOME TAX ACT, 1961

Section 153A

Where it was clearly discernable that Tribunal gave a finding of fact that assessments made no reference to the seized material or any other material for the years under consideration, that was found during the course of search, in case of assessee, merely because a satisfaction note was recorded, it could not lead to a conclusion and therefore, assumption of jurisdiction under section 153C could not be sustained.

Search and seizure - Assessment under section 153A - Tribunal gave a finding of fact that assessments made no reference to the seized material or any other material for the years under consideration -

Issue was as regards validity of assessment framed by AO under section 153A/143(3), as consequent upon the search action under section 132, nothing incriminating was found against the assessee. Case of assessee was that in absence of any incriminating material found during the course of search, additions made by AO under section 68 were rightly deleted. Held: It was clearly discernable that Tribunal gave a finding of fact that assessments made no reference to the seized material or any other material for the years under consideration, that was found during the course of search, in case of assessee. There was no incriminating material related to the assessee which could justify the action of the revenue. Merely because a satisfaction note was recorded, it could not lead to conclusion, especially when the revenue has not laid any foundation to support their contention. In the factual background as explained above, the assumption of jurisdiction under section 153C could not be sustained in view of the decision of court in the case of Kabul Chawla.

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

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2001-02 & 2002-03



IN THE DELHI HIGH COURT

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