GMR Energy Ltd. v. Dy. CIT - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 4073 (Bang-Trib)

INCOME TAX ACT, 1961

Section 153A

Since there was no categorical observation by CIT(A) regarding any incriminating material that was unearthed and seized leading to undisclosed income that was not considered and unless there was a factual observation regarding availability of incriminating material seized leading to undisclosed income in hands of assessee, issue cannot be answered in accordance with law, therefore, matter was remanded back to CIT(A) to discern from assessment records.

Search and seizure - Assessment under section 153A - Necessity of incriminating material during the course of search -

Issue arose for consideration as to whether Tribunal was correct in law in holding that incriminating material was necessary condition for proceedings under section 153A by following judgment of this court in case of CIT v. Lancy Constructions (2016) 383 ITR 168 (Karn) : 2016 TaxPub(DT) 1207 (Karn-HC). Held: If search has taken place, section 153A is triggered, and finding of incriminating material in search is not relevant. There was no categorical observation by CIT(A) regarding any incriminating material that was unearthed and seized leading to undisclosed income that was not considered. Unless there was a factual observation regarding availability of incriminating material seized during course of search leading to undisclosed income in the hands of assessee for year under consideration, issue cannot be answered in accordance with law. Therefore, matter was remanded back to CIT(A) to discern from assessment records of their being any incriminating material seized during course of search.

Relied:Pr.CIT v. GMR Energy Ltd. 2019 TaxPub(DT) 1189 (Karn-HC) CIT v. Lancy Constructions (2016) 383 ITR 168 (Karn-HC) : 2016 TaxPub(DT) 1207 (Karn-HC), CIT v. Canara Housing Development Co. (2015) 62 Taxmann.com 250 (Karn) : 2015 TaxPub(DT) 4369 (Karn-HC) and CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015) 374 ITR 645 (Bom-HC) : 2015 TaxPub(DT) 2182 (Bom-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

IN THE ITAT, BANGALORE BENCH