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| The Tax Publishers2021 TaxPub(DT) 4123 (Ahd-Trib) INCOME TAX ACT, 1961
Section 153A
Since addition was made on the basis of the books of accounts and the details furnished to AO and not on the basis of any incriminating material found during the course of search, therefore, AO was directed to delete the addition made under section 143(3) read with section 153A.
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Search and seizure - Assessment under section 153A - Addition not made on the basis of incriminating material during the course of search - Addition made on the basis of the books of accounts
A search under section 132 was carried out at the branch office of assessee. Notice under section 153A was issued requesting the assessee to file its return of income for assessment year 2010-11. In response to the same the return of income declaring income was filed by the assessee. Notice under section 143(2) read with section 153A and under section 142(1) was issued. The facts pertain to the issue was that assessee paid interest on unsecured loans at 12%. AO though accepted the unsecured loans as genuine but disallowed interest paid thereon on assumption basis although to independent and corroborative evidence was relied upon for such disallowance.Held: CIT(A) in the earlier year on the identical facts deleted the additions made by AO in the unabated assessment since the same were not made on the basis of any incriminating material found during the course of search relying upon the principle laid down by High Court in the case of PCIT v. Saumya Construction Pvt. Ltd., (2016) 387 ITR 0529 (Guj) : 2016 TaxPub(DT) 3466 (Guj-HC). Addition in the appeal in hand indeed has been made on the basis of the books of account and the details furnished to AO and not on the basis of any incriminating material found during the course of search. Hence, AO was directed to delete the addition made under section 143(3) read with section 153A.
Followed:Pr. CIT v. Saumya Construction (P) Ltd. (2016) 387 ITR 0529 (Guj) : 2016 TaxPub(DT) 3466 (Guj-HC), CIT v. Kabul Chawla (2015) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC), CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC), CIT v. Jayaben Ratilal Sorathia [Tax Appeal No. 914 of 2012, dt. 2-7-2013] and Jai Steel (India) v. Asstt. CIT 2013 TaxPub(DT) 1647 (Raj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 & 2011-12
IN THE ITAT, AHMEDABAD BENCH
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