INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - No incriminating material found in respect of assessee during the course of search -

A search and seizure operation was conducted on assessee company and pursuant to that search action, case of assessee was centralized, and, subsequently notice under section 153A was issued to assessee. During the course of assessment proceedings under section 153A, AO noted that assessee had received share application money and premium which received from three companies. AO observed that required documents evidencing creditworthiness, genuineness and identity of the investors were not furnished and, therefore, made addition for the same under section 68 on account of alleged bogus share capital. Held: No incriminating material or evidence had been found during the course of search so as to doubt the transactions. AO had not referred to any seized material or other material for the year having being found during the course of search in the case of assessee, leave alone the question of any incriminating material for the year under appeal. Therefore, the action of AO was based upon conjectures and surmises and hence, the addition made was not sustainable in the eyes of law.

Followed:CIT (Central)-III v. Kabul Chawla (2016) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC) ACIT, CC-8, New Delhi v. M/s. Dingle Buildcons (P) Ltd. and Vice-Versa in CO. Nos. 351 and 352/Del/2016 in ITA Nos. 4666 and 4667/Del/2016 : 2018 TaxPub(DT) 1097 (Del-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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