Case Law Details
Manjeet Kaur Saran Vs ACIT (ITAT Delhi)
ITAT Delhi held that addition made by the A.O. in the absence of any incriminating material found during the search operation conducted u/s 132 of the Income Tax Act is liable to be deleted.
Facts- A search and seizure operation u/s 132 of the Income Tax Act, 1961 was carried out in HBN Group. The group was engaged in diverse businesses ranging from dairy development and marketing of dairy products; real estate development, home loan finance, and running a broadcast channel under the brand ‘CNEB’, through various companies.
The group was mainly controlled by Sh. Harmender Singh Saran, who was the Chairman of HBN group. Assessee is the wife of Sh. Harmender Singh Saran. Search & seizure proceedings u/s 132 of the Act were initiated against the assessee also. Notice u/s 153A of the Act was issued on 02-06-2010 requiring the assessee to file her return of total income. In response thereto, return declaring income of Rs. 2,76,980/- was filed.
During the year assessee declared income from salary received from M/s HBN Dairies & Allied Ltd. On 16-122011, the AR of the assessee filed a copy of personal cash book of the assessee before the A.O. Unexplained shortage of cash in the cash book has been worked out at Rs. 14,25,000/-. Thus, the A.O. made addition of Rs. 14,25,000/- to the total income of the assessee on account of income from undisclosed sources vide Assessment order u/s 153A of the Act. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A), CIT(A) dismissed the Appeal filed by the assessee.
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