Hetal Rakesh Mehta Vs ACIT (ITAT Pune)
ITAT Pune held that in respect of unabated assessment, no addition can be made by AO in absence of any incriminating material found during the course of search under section 132 of the Income Tax Act. Accordingly, order set aside and appeal allowed.
Facts- A search and seizure action u/s 132 of the Act was conducted in the case of the assessee on 06.11.2019. During the course of assessment proceedings AO noted from the perusal of the seized documents and the statements given during the search action that the assessee was engaged in providing data entries for purchases made by M/s. BVG India Ltd. From the submissions made by the assessee, AO noted that the assessee has not offered any commission income in her return of income for assessment year 2018-19. Since the assessee was not able to provide any satisfactory reply, AO estimated the commission @ 1% of the sales made by the assessee which comes to Rs.11,36,791/- which he added to the total income of the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that since the addition in the instant case has been made in absence of any incriminating material found during the course of search and since the assessment is an unabated assessment and the addition is based mainly on the basis of third party statement without any supporting evidence and that too on estimate basis, therefore, we hold that the addition made by the Assessing Officer by estimating the commission income in 153A assessment is not in accordance with law. We, therefore, set aside the order of the Ld. CIT(A) and direct the Assessing Officer to delete the addition.
