Case Law Details
M/s. Wisdom Realtors Pvt. Vs ACIT (ITAT Delhi)
Conclusion:
Since assessment under section 153C was made only on the basis of incriminating documents such as balance sheet and profit and loss account which were not related to assessment years under appeals, therefore, assessment was invalid as no incriminating material was found during the course of search to proceed against the assessee.
Held:
AO initiated search proceedings under section 153C against the assessee by recording satisfaction that the incriminating documents belonged to assessee-company. It was held only incriminating documents related to assessee, were balance sheet and profit and loss account, which were not related to assessment years under appeals. Thus, no incriminating material was found during the course of search so as to proceed against the assessee under section 153C. It was a general satisfaction recorded, therefore, AO was not justified in assuming jurisdiction under section 153C so as to proceed against assessee.
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