Case Law Details
ITO Vs Prajyoti Impex Pvt Ltd (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by the Income Tax Officer (ITO) against Prajyoti Impex Pvt Ltd. The case involved assessment year 2014-15 and the initiation of proceedings under Section 153C of the Income Tax Act after a search and seizure operation. The ITO made certain additions to the assessed income, but the Commissioner of Income-Tax (Appeals) deleted these additions. The ITAT Delhi examines the case to determine whether the additions made by the ITO were based on incriminating material found during the search and seizure operation.
Analysis: The ITAT Delhi carefully reviewed the assessment order and found no indication that the additions made by the ITO were supported by incriminating material found during the search and seizure operation. The Revenue failed to present any material to support their claim that the additions were based on incriminating material. The ITAT Delhi refers to legal precedents that state that no addition can be made under Section 153C of the Act without incriminating material found during the search and seizure operation. Based on this reasoning, the ITAT Delhi upholds the decision of the Commissioner of Income-Tax (Appeals) to delete the additions made by the ITO.
Conclusion: The ITAT Delhi dismisses the appeal filed by the Income Tax Officer against Prajyoti Impex Pvt Ltd. The tribunal affirms that the additions made under Section 153C of the Income Tax Act cannot be sustained without any incriminating material found during the search and seizure operation. Therefore, the decision of the Commissioner of Income-Tax (Appeals) to delete the additions is upheld.
FULL TEXT OF THE ORDER OF ITAT DELHI
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