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| The Tax Publishers2019 TaxPub(DT) 7519 (Del-Trib) INCOME TAX ACT, 1961
Section 153C
Where disallowance by AO of ROC fee paid by assessee, was not made on the basis of any incriminating material found during course of search, in absence of the same, the AO could not exercise his jurisdiction under section 153C and hence, the order passed under section 153C would not be sustainable.
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Search and seizure - Assessment under section 153C - Disallowance of ROC fee - No incriminating material
AO issued notice under section 153C to assessee-company. In response thereto, assessee filed return of income. Its case was taken up for scrutiny, wherein the AO made disallowance of 20% of ROC fee paid by assessee for increase in share capital considering the same as capital expenditure. Held: Nature of addition, which was made in the hands of assessee was 20% fee paid to ROC for increase in share capital. The said disallowance was not made on the basis of any incriminating material found during course of search. In absence of the same, the AO could not exercise his jurisdiction under section 153C and hence, the order passed under section 153C would not stand.
Relied:Sinhgad Technical Education Society (2017) 397 ITR 344 (SC): 2017 TaxPub(DT) 3941 (SC) Kabul Chawla (2015) 380 ITR 573 (Del): 2015 TaxPub(DT) 3486 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2005-06 to 2009-10
INCOME TAX ACT, 1961
Section 37(1)
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