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| The Tax Publishers2020 TaxPub(DT) 1378 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Section 153C
As papers found and seized during search in case of third party related to estimations, but not related to any income or expenditure of assessee or investment made by assessee which had bearing on income, therefore, loose sheets found and seized during the course of search were not incriminating having bearing on income of assessee and, therefore, section 153C assessment was invalid.
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Search and seizure - Assessment undrs ection 153C - No incriminating material - Loose sheet containing estimations having no bearing on income
Assessee firm was engaged in quarrying and sale of sand and contract works. AO in pursuance of loose sheets found during search conducted at residence of one of the partners, invoked jurisdiction under section 153C over assessee and made addition. Assessee's case was that said loose sheets could not be considered as incriminating material.Held: As apparent, papers found and seized related to estimations, but not related to any income or expenditure of assessee or investment made by assessee which had bearing on income. Even AO did not make any direct addition on the basis of loose sheet. Therefore, loose sheets found and seized during the course of search were not incriminating having bearing on income of assessee and, therefore, section 153C assessment was invalid.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 to 2014-15
IN THE ITAT, VISAKHAPATNAM BENCH
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