DCIT Vs Frost Falcon Distilleries Ltd (ITAT Delhi)
ITAT Delhi held that assessments completed u/s. 153A, making addition u/s. 68 of the Income Tax Act, without any incriminating material found during the search action is unsustainable in law. Accordingly, addition deleted.
Facts- A search operation was conducted in the office premises of Krish Group of Companies and accordingly notice u/s 143A of The Income Tax Act 1961 was issued upon the assessee which is engaged in the business of manufacturing of liquor beverages. AO was of the view that the assessee has failed to establish identity, creditworthiness and genuineness of the persons and the transactions from whom the share capital/share application was received by the assessee and accordingly additions were made u/s 68 of the Act, which have been deleted by the Ld. CIT(A). Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the aforesaid observations of the Ld. CIT(A) could not be rebut by the Ld. Departmental Representative by referring to any documents available on record or in the paper book to contend that this factual finding is incorrect. The Ld. Departmental Representative has tried to make out a case on the observations of the Assessing Officer which are merely ‘inferences’ drawn on the basis of certain investigation reports of the other persons while the assessment in case of the assessee was completed by recourse to Section 153A (1)(b) read with Section 143 (3) of the Act. Thus, we are of the considered view that in the absence of any incriminating evidence, the assessments could not have been completed u/s 153A of the Act and the findings of Ld. CIT(A) requires no interference.
