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| The Tax Publishers2020 TaxPub(DT) 4328 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
It is settled proposition of law that when there are divergent views on a particular issue the view which is favourable to assessee has to be followed. Therefore, following the decision of Delhi High Court in case of SMC Power Generation Ltd. additions made under section 153A in the absence of incriminating material found during search, were deleted.
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Search and seizure - Assessment under section 153A - No incriminating material found during search - Revenue taking plea of decision of other High Court
AO, pursuant to search conducted at assessee's premises, framed assessment under section 153A and made addition. Assessee challenged this on the ground of no incriminating material found during search. Revenue took plea of decision of Kerala High Court in case of E.N. Gopakumar which was concluded against interest of assessee, including making addition even without any incriminating material being available against assessee during search. Held: It is settled proposition of law that when there are divergent views on a particular issue, the view which is favourable to assessee has to be followed. Therefore, following the decision of Delhi High Court in case of SMC Power Generation Ltd. additions made under section 153A in the absence of incriminating material found during search, were deleted.
Followed:CIT v. Vegetable Products Ltd. (1973) 88 ITR 192 (SC) : 1973 TaxPub(DT) 421 (SC) and Pr. CIT v. SMC Power Generation Ltd. ITA 406/2019, Order, dated 23-7-2019 : 2019 TaxPub(DT) 5810 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10 & 2010-11
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