The Tax Publishers2021 TaxPub(DT) 0569 (Del-HC)

INCOME TAX ACT, 1961

Section 153A

Since no incriminating material was unearthed by AO during the course of search operation under section 132, therefore, no addition could be made during the relevant assessment year under section 153A by reopening the assessment on the matter, which was examined earlier during original assessment.

Search and seizure - Assessment under section 153A - Addition made pursuant to search operation on the same subject-matter, which was examined during original assessment - Validity of

A search was carried out under section 132 in case of group companies. On the same date, a search was carried out in the premises of the assessee who, along with his wife, owned and controlled the group. As on the date of search, no assessment proceedings were pending for relevant assessment years. Pursuant to the search, a notice under section 153A(1) was issued to the assessee and assessee filed returns. The assessment was finally completed by AO by making certain addition which, inter alia, included additions on account of deemed dividend under section 2(22)(e) corresponding to the additions made on protective basis in the hands of group companies in which the assessee was a substantial shareholder. Held: Since no incriminating material was unearthed by AO during the course of search operation under section 132, therefore, no addition could be made during the relevant assessment year under section 153A by reopening the assessment on the matter, which was examined earlier during original assessment concluded under section 143(3).

Followed:CIT v. Kabul Chawla (2015) 61 Taxmann.com 412 (Del-HC) : (2015) 234 Taxman 300 (Del-HC) : (2016) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC) and Asstt. CIT v. Bluebird Software Pvt. Ltd. [ITA No. 966 (Del) of 2012 for the assessment year 2005- 06, dt. 20-10-2016]

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



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