Case Law Details
Brief of the Case
ITAT Mumbai held In the case of Shri Vimal Kumar Rathi vs. DCIT that it is settled legal position that in the absence of any incriminating material found during search, additions made on the assessed income are unsustainable in law. In current case, there is no reference to the seized material in any of the additions made by the AO. Hence, additions are not sustainable.
Facts of the Case
The assessee is engaged in the business of trading in Plywood, Laminates & Timber etc and is an associate of the Euro Group of concerns. A search and seizure action u/s 132 was conducted on the said Euro Group on 3.8.2006 and the assessee being an associated person of this group, his residential premises was also covered. Responding to the notice issued u/s 153A, assessee filed the return of income on 22.7.2008 declaring the total income of Rs. 6,52,665/-. In the process, AO completed the assessment u/s 143(3)(ii) r.w.s 153A and the assessed income was determined at Rs.3,84,98,320/- which includes the additions (i) income from undisclosed sources towards payment of loan amounting to Rs. 3,18,54,658/- and (ii) income from undisclosed sources of Rs. 60 lakhs.
Contention of the Assessee
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