Case Law Details
Brief of the Case
ITAT Mumbai held In the case of M/s. Ideal Appliances Co. Pvt. Ltd. vs. DCIT that it is settled legal position that no addition can be made to the income already assessed since no incriminating material was unearthed during the search. Also in those cases where the assessment had been completed under summary scheme under section 143(1) and time limit for issue of notice under section 143(2) had expired on the date of search, it will be considered that there was no assessment pending. Therefore, addition could be made only on the basis of incriminating material found during search.
Facts of the Case
The assessee is engaged in the business of financing and letting of cars and commercially exploiting properties. Assessee filed the return of income on 29.10.2005 declaring the total income of Rs. 26,52,740/- for the AY 2005-06. As a result of the scrutiny assessment, assessee’s income was determined at Rs. 26,99,231/-. A search was conducted on 6.10.2010 at the premises. Subsequently, assessee was issued notice u/s 153A. In response to the said notice, assessee filed the revised return of income declaring the total income of Rs. 26,93,886/- on 11.2.2013. In the process, AO issued notice u/s 142(1) on 14.1.2013. After considering the assessee’s submissions and relevant documents, AO passed the order u/s 143 (3) r.w.s 153A and the assessed income is determined at Rs. 45,41,618/-.
Contention of the Assessee
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