Dynamic Infraprojects Private Limited Vs DCIT (ITAT Delhi)
ITAT Delhi held that assessment order under section 153A of the Income Tax Act quashed as assessment has been framed not based on any incriminating material found during the course of search.
Facts- A search and seizure operation u/s. 132 of the Act was conducted on 12.11.2013 alongwith Eminent Group of Cases. Notice u/s. 153A of the Act was issued on 12.08.2015 and in compliance to the same the assessee filed return of income on 17.11.2015 declaring total income of Rs. 5,148/-. Notice u/s. 143(2) of the Act was issue don 20.11.2015 and duly served upon the assesse. Later on, notices u/s. 142(1) of the Act alongwith questionnaire were issued and AO completed the assessment by making (i) addition of Rs. 15,28,785/- being 10% of the expenses claimed in profit and loss account, (ii) addition of Rs. 53,51,000/- u/s. 68 of the Act on account of unsecured loan and (iii) addition of Rs. 13,00,000/- u/s. 68 of the Act on account of advances from the Customers.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that no addition can be made when the assessment framed u/s. 153A dehors incriminating material found during the search.
