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| The Tax Publishers2020 TaxPub(DT) 4643 (Ctk-Trib) INCOME TAX ACT, 1961
Section 153C
As there was not a shred of incriminating material against assessee and further, on date of search or satisfaction recorded, there was no iota of evidence that assessment was pending before Revenue; the assessment framed under section 153C was rightly annulled by CIT(A).
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Search and seizure - Assessment under section 153C - No incriminating material against assessee -
During course of search and seizure in case of a concern 'B', certain books of account containing loose bundles were found, which were related to assessee-company. Assessee explained the same, however, AO was not convinced with the explanation of the assessee and accordingly, he framed assessment under section 153C. However, CIT(A) annulled the assessment completed under section 153C observing that there was not a shred of incriminating material against the assessee and hence, such assessment was not justified. Held: The judicial opinion on issue of notice and framing of assessment under section 153C is that the assets or books of account or documents or information relating to/pertaining to the 'Other Person' must be incriminating in nature. In instant case, on examination of seized documents on the basis of which assessment was framed under section 153C, it was found that there was not a shred of incriminating material against the assessee. Further, on date of search or satisfaction recorded, there was no iota of evidence that the assessment was pending before Revenue. Accordingly, the CIT(A) was justified in annulling the assessment completed under section 153C in absence of any incriminating material.
REFERRED : CIT v. Sinhgad Technical Education Society (2017) 84 Taxmann.com 290 (SC) : 2017 TaxPub(DT) 3941 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, CUTTACK BENCH
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