The Tax Publishers2020 TaxPub(DT) 2231 (Kol-Trib)

INCOME TAX ACT, 1961

Section 153A

Since there was no whisper by AO/CIT(A) about any incriminating material to show that assessee in fact incurred expenditure for earning the exempt income in relevant assessment years, no disallowance under section 14A could be resorted to by AO while framing assessment under section 153A.

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

Assessee challenged assessment under section 153A contending that there was absence of any incriminating material found during search, so as to make addition in assessee's hands under section 14A. Held: Since there was no whisper by AO/CIT(A) about any incriminating material to show that assessee in fact incurred expenditure for earning the exempt income in relevant assessment years, no disallowance could be resorted to by AO under section 153A.

Relied:CIT v. Kabul Chawla (2016) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC) DCIT v. Shri Ashok Jasraj Jain (ITA No. 5718/Mum/2016, dated 23-5-2018)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2013-14, 2014-15 & 2016-17


INCOME TAX ACT, 1961

Section 14A

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