Case Law Details
Amitbhai Manubhai Kachadiya Vs DCIT (ITAT Surat)
The Learned Counsel for the assessee submitted that there were no recovery of any incriminating material / documents during the course of search and no assessment proceedings were pending in all the above assessment years under appeals on the date of the search on 17.07.2012. Therefore, no additions can be made u/s.68 of the Income Tax Act in all the assessment years u/s.153A of the Income Tax Act. He has submitted that original returns were filed in all the cases of three assessees for all the assessment years which have already been processed u/s.143(1) accepting the returned income and the time limit to issue notice u/s.143(2) has expired much before the date of search. Since no incriminating material was found during the course of search, as regards the additions made u/s.68 of the Income Tax Act, therefore, no additions could be made. He has submitted that additional grounds are legal in nature in all the appeals and go to the root of the matter, therefore, same may be admitted for hearing. In support of contention, he has relied upon following decisions i) Pr.CIT Vs. Meeta Gutgutia (2018) 96 taxmann.com 468 (SC) ; ii) CIT Vs. Saumya Construction Ltd. (2016) 387 ITR 529 (Guj) ; iii) Pr. CIT-1 Vs. Devangi (2017) 88 taxmann.com 610 (Gujarat) and iv) Pr. CIT Vs. Jay Infrastructure and Properties Pvt. Ltd. (In Tax Apeal No. 740 of 2016, order dtd. 10-10-2016) and CIT Vs. Kabul Chawla 61 taxmann.com 412(Delhi).
We have considered the rival submissions and perused the material available on record. In all the assessment years under appeals in the case of three assessees above, the assessees have already filed original return of income prior to the search and same have been accepted by the Revenue Department. No assessment proceedings were pending on the date of search in all the years under appeals. The Assessing Officer in absence of explanation from the side of the assessees have treated the cash receipts of commission / brokerage as shown in the return of income as unexplained cash credit u/s.68 of the Income Tax Act. It would show no incriminating material was found during the course of search, as regards the addition made u/s.68 of the Income Tax Act. The issue is therefore covered by above judgements relied upon by Learned Counsel for the assessee. It is a legal issue and goes to the root of the matter. No new facts shall have to be investigated, therefore, additional grounds raised above in all the appeals are admitted for the purpose of disposal of the appeals. Applications allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
1. All the above appeals by three assessees are directed against common orders of Learned Commissioner of Income (Appeals)-4 [CIT(A)], Surat dated 25.11.2016, 13.12.2016 and 14.12.2016 for above assessment years. All appeals are decide through this common consolidated order.
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