The Tax Publishers2020 TaxPub(DT) 2520 (Kol-Trib) : (2020) 082 ITR (Trib) 0382

INCOME TAX ACT, 1961

Section 263 Section 153A

As regular assessment for the year under consideration stood abated as on date of search, therefore, same was rightly not interfered with while framing search assessment so as to examine eligibility to exemption under section 54/54F in view of the fact that no incriminating materials was found in the course of search. Therefore, order passed under section 143(3) read with section 153A could not be treated as erroneous and prejudicial on account of AO having examined issue of eligibility of exemption under section 54/54F while framing assessment under section 153A.

Revision under section 263 - Erroneous and prejudicial order - No examination as regards issue of eligibility of exemption under section 54/54F while framing assessment under section 153A - No incriminating materials was found in the course of search

Pr. CIT held assessment order passed by AO under section 153A/143(3) as erroneous in so far as it is prejudicial to the interest of revenue on the ground of AO not having examined issue of eligibility of exemption under section 54/54F while framing assessment. Assessee's case was that no incriminating material was found during search. Held: As regular assessment for the year under consideration stood abated as on date of search, therefore, same was rightly not interfered with while framing search assessment so as to examine eligibility to exemption under section 54/54F in view of the fact that no incriminating materials was found in the course of search. Therefore, order passed under section 143(3) read with section 153A could not be treated as erroneous and prejudicial.

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

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



IN THE ITAT, KOLKATA BENCH

S.S. GODARA, J.M. & A.L. SAINI, A.M.

Kusumlata Sonthalia v. PCIT

ITA No. 1151/Kol/2018

17 June, 2020

In favour of assessee.

Appellant by: None

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