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| The Tax Publishers2020 TaxPub(DT) 0585 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
Where certain invoice as to rendering of consultancy services was found during search operation and this invoice was not raised by assessee then no addition towards undisclosed consultancy income can be made in hands of assessee.
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Search and seizure - Assessment under section 153A - Incriminating material - Invoice fund in search already accounted him
There was a search and seizure action conducted on under section 132 of the Act in the hands of the assessee. The assessment under section 153A r.w. section 143(3) of the Act after adding a sum of Rs. 2,27,51,586 on account of undisclosed consultancy income in the hands of the assessee. This addition was made based on an invoice which was raised by M/s U.K. Paints (Overseas) Ltd. for USD $ 515909 (equivalent to Rs. 2,27,51,586) on unrelated Indian company M/s ERA Construction India Ltd. This invoice was duly impounded from the office premises of the U.K. Paints Ltd. at the time of survey proceedings under section 133A of the Act on the said concern. Held: CIT (A) had categorically stated that the invoice that was found during the course of survey in the office premises of the U.K. Paints (Overseas) Ltd. suggested that the services were rendered only by U. K. Paints Overseas Ltd. and not by the assessee herein. He had also stated that this invoice had already been accounted in the books of U.K. Paints (Overseas) Ltd. much prior to the date of search and survey. Hence this document cannot be said to be of incriminating nature to be used in the search assessment framed under section 153A of the Act.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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