INCOME TAX ACT, 1961

Section 153A Section 68

Search and seizure - Assessment under section 153A - Statement recorded during assessment proceedings whether incriminating material -

In assessee's group cases there was second search on 22-7-2015 whereas earlier search and seizure action was on 31-10-2012 on all three group cases. In the earlier assessments made by the AO pursuant to the search dated 31-10-2012, addition was made on account of share premium and share capital received by the assessee from various companies. The said addition was partly confirmed by the CIT(A). On further appeal, this Tribunal deleted the addition made by the AO. due to the subsequent search on 22-7-2015, the AO was bound to reassess the income of these assessees in the proceedings under section 153A read with section 143(3). The AO repeated the addition in the orders passed under section 153A. CIT(A) deleted the addition made by the AO in respect of all the assessment years on the ground that the addition made by the AO without any incriminating material found or seized during the search and seizure action was not legally tenable.Held: The AO had repeated the addition while framing the assessment under section 153A pursuant to the search dated 22-7-2015 without any incriminating material found or seized during the course of search action was not in dispute. The revenue had supported its case only on the statements recoded by the AO during the course of assessment proceedings which view do not constitute incriminating material found or seized during the course of search. Further, even those statements recorded by the AO have not resulted any fact or material to indicate any undisclosed income or unexplained cash credits which could be added under section 68. Accordingly, in the facts and circumstances of the case, there was no error or illegality in the impugned order of the CIT(A) in deleting the addition.

Followed:Jai Steel (India) v. Asstt. CIT (2013) 259 CTR 281 (Raj-HC) : 2013 TaxPub(DT) 1647 (Raj-HC), Decision of the ITAT Jaipur Bench in the case of Kota Dall Mill in ITA. Nos. 997 to 1002/JP/2018 and 1119/JP/2018 and 1057 to 1062/JP2018 and 1210/JP/2018 vide Order, dated 31-12-2018 : 2019 TaxPub(DT) 454 (Jp-Trib), Pr. CIT, Central-2, New Delhi v. Meeta Gutgutia (2017) 395 ITR 526 (Del-HC) : 2017 TaxPub(DT) 1767 (Del-HC).

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

FAVOUR : In assessee's favour.

A.Y. : 2011-12 to 2013-14

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