AO pursuant to search conducted in assessee's case, framed assessment under section 153A and made addition under section 68 on account of receipt of unexplained loan on the basis of statement recorded during post-search enquiries in case of alleged entry operators. Assessee challenged this on the ground of no incriminating material found during search. Held: Revenue was aware of the unsecured loans raised by assessee in the course of original assessment and all material facts in relation thereto were available on record prior to search. The subsequent enquiries under section 131 conducted by AO in the course of assessment proceedings under section 153A could not be said to be 'incriminating material found in the course of search upon assessee'. Therefore, regular assessments for the concerned years which remained unabated as on date of search could not be interfered with while framing section 153A assessment in the absence of incriminating material found during search. Even addition was not sustainable on merits also.
IN THE ITAT, KOLKATA BENCH
P.M. JAGTAP, V.P. & A.T. VARKEY, J.M.
Mani Square Hospitality (P) Ltd. v. Asstt. CIT
I.T.(S.S.)A. Nos. 35 to 38, 39 & 40/Kol/2020
6 November, 2020
In favour of assessee.
Appellant by: S.K. Tulsiyan, Advocate
Respondent by: Ram Bilash Meena, Commissioner Departmental Representative
A.T. Varkey, J.M.
These appeals are preferred by the appellant against the order of learned Commissioner (Appeals)-21, Kolkata, dated 8-11-2019 for assessment year 2011-12 to 2014-15, assessment year 2016-17 and assessment year 2017-18.
Since issues involved were common, all the appeals were heard together. Both the parties also argued them together raising similar arguments on these issues.
Accordingly, for the sake of brevity, we dispose all the appeals by this consolidated order.