Oswal Fab Knits Ltd. Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that no incriminating material found during course of search and assessment is completed during date of search hence addition under section 68 of the Income Tax Act not sustainable.
Facts- Assessee has preferred the present appeals. The common issue involved in all the appeals is relating to the addition made by the AO under Section 68 of the Income Tax Act, 1961 treating the share application money received by the assessee as unaccounted income of the assessee.
Conclusion- Hon’ble Supreme Court in the case of PCIT Vs Abhisar Buildwell (P) Ltd. has held that no addition can be made in the absence of any incriminating material found during the course of the search action in the case of non abated/completed assessment on the date of search.
Held that since no incriminating material was found during the course of search action and the assessment in all these cases stood completed/ non-abated on the date of search action, therefore, the impugned additions made by the AO are not sustainable.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
The captioned appeals are outcome of the same search action carried out at the Oswal Group of cases on 10.05.20 12. Since common facts and issues are involved in these appeals, therefore, same were heard together and are being disposed of by this common order.
