INCOME TAX ACT, 1961

Section 153A Section 14A

Search and seizure - Assessment under section 153A - Addition under section 14A without any incriminating material -

An addition under section 14A was made by the AO in the group cases, and the same had been deleted by the Tribunal. on the ground holding that in absence of any incriminating material found as a result of search, no additions could be made in the assessment framed under section 153A. Additions made by the AO towards disallowance of expenditure incurred in relation to exempt income under section 14A was thus deleted.Held: After going through the orders of the authorities below it was found that while framing assessment under section 153A read with section 143(3) AO had made disallowance under section 14A. However, no incriminating material was referred by the AO while making addition under section 14A. Issue regarding disallowance under section 14A had been dealt with by the Tribunal in the group cases and also the date of search was same and after observing that in absence of any incriminating material, no addition can be made in respect of the assessment which become final and no proceeding was pending as on the date of search. In the Tribunal order also as stated above, search was also taken on 24-9-2013 and with reference to the very same search, the assessing officer had made disallowance under section 14A. As the facts and circumstances during the year under consideration were same, respectfully following the order of the Tribunal in the group case, there was, therefore, no merit for the addition made under section 14A.

Followed:Tribunal's order in group cases order dt. 29.08.2019

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 153A Section 68

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