The Tax Publishers2019 TaxPub(DT) 5810 (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 on account of share application money in the course of search - No incriminating material found

A search and seizure operation under section 132 and thereafter a Notice under section 153A was issued to assessee. Revenue alleged that assessee had not established the genuineness, identity and creditworthiness of three entities from whom it had received share premium during the assessment year. AO made an addition to the income of assessee disbelieving the contentions of assessee. CIT(A) and Tribunal allowed the appeal of assessee. 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).

REFERRED : CIT-III v. Sinhgad Technical Education Society (2017) 397 ITR 344 (SC) : 2017 TaxPub(DT) 3941 (SC) CIT-III v. Kabul Chawla 2015 (380) ITR) 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC) ACIT v. SMC Power Generation Ltd. [ITA No. 4798/DEL/2015, CO No. 457/DEL/2015, dt. 13-8-2018]

FAVOUR : In assessee's favour

A.Y. :



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