Gopal Garg Vs DCIT (ITAT Delhi)
ITAT Delhi held that addition made under section 153A of the Income Tax Act are bad-in-law in absence of any incriminating material found during the course of search. Accordingly, assessment order quashed.
Facts- A search and seizure operation conducted on residential as well as office premises of SRS Group on 06/06/2018. Consequent to the same, assessment proceedings u/s 153A of the Income Tax Act, 1961 was initiated against the Assessee and an assessment order came to be passed by computing the income of the Assessee at Rs. 84,46,917/- as against the returned income of Rs. 19,52,500/-. Aggrieved by the assessment order dated 25/06/2021, the Assessee preferred an Appeal before CIT(A).
CIT(A) vide order dated 31/01/2024, partly allowed the Appeal by confirming the addition of Rs. 4,06,786/- made on account of purchase from M/s Krishna Industries, holding the same has not genuine and also confirmed the addition of Rs. 29,50,000/- made on account of loan received from M/s Rajat Fincap Pvt. Ltd. Being aggrieved, the Assessee preferred the present Appeal.
Conclusion- Hon’ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd. held that addition cannot be made in the absence of any incriminating material found during the course of search.
