INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Validity of -

AO passed the assessment order under section 153A/143(3). In the Order, as against the returned loss Rs. 1,94,170, AO assessed the assessee at the loss of Rs. 1,94,170. However, AO reduced the value of inventory/stock-in-trade capitalized by assessee by making disallowance on account of brokerage and disallowance on account of compensation. Assessee before CIT(A) submitted that both additions were beyond the scope of provisions of section 153A because the said disallowances were not based upon any documents/papers seized during the course of search. Held: In the present case both the additions were admittedly made during the course of inquiries at assessment stage under section 153A and original assessment was already completed by proceeding the return under section 143(1), therefore, issue was covered by Judgments of High Court in the case of CIT v. Kabul Chawla ((2015) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC)) and appeal of Department stands dismissed.

REFERRED : Pr. CIT v. Meeta Gutgutia (2017) 395 ITR 526 (Del.) : 2017 TaxPub(DT) 1767 (Del-HC) Smt. Dayawanti & Ors. v. CIT (2017) 390 ITR 0496 (Del) : 2016 TaxPub(DT) 4888 (Del-HC) CIT v. Kabul Chawla (2015) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC) CIT v. Raj Kumar Arora (2014) 52 taxmann.com 172 (All) : 2014 TaxPub(DT) 3949 (All-HC) CIT v. Anil Kumar Bhatia (2012) 211 Taxman 453 (Del) : 2013 TaxPub(DT) 0245 (Del-HC)

FAVOUR : In assessee's favour

A.Y. :

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