ACIT Vs Shiva Cement Limited (ITAT Cuttack)
No Addition Without Incriminating Materia: ITAT Cuttack Follows Abhisar Buildwell
Assessee had filed its original return of income u/s 139(1) declaring a loss of ₹1.88 Cr. A search u/s 132 was carried out in September 2014 in the case of Assessee & group concerns. Pursuant to this, the case was centralized u/s 127. Notice u/s 153A was issued, to which Assessee reiterated the same return of income as filed earlier. During assessment, AO noticed an increase in paid-up capital of ₹2.88 Cr & share premium of ₹1.46 Cr, aggregating to ₹4.35 Cr, besides consultancy charges of ₹11.76 L without deduction of TDS. AO held that Assessee failed to substantiate the identity, creditworthiness & genuineness of share capital/premium & also failed to furnish supporting vouchers for consultancy charges. Accordingly, AO made additions of ₹4.35 Cr u/s 68 & ₹11.76 L u/s 40(a)(ia).
CIT(A) deleted the additions holding that both AYs were unabated on the date of search & therefore additions could be made u/s 153A only on the basis of seized incriminating material. Since AO relied only on audited balance sheet & bank documents already on record, without any seized incriminating evidence, jurisdiction u/s 153A was not available. CIT(A) followed the Supreme Court ruling in PCIT v. Abhisar Buildwell (2023) 454 ITR 212 (SC) & quashed the assessment.
