Saketkumar Rugnath Tanna Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that addition merely on the basis of retracted statement without any incriminating material seized from assessee’s premises is unsustainable in law and liable to be quashed.
Facts- Assessee is an individual and Proprietor of M/s. Saketkumar Rugnath engaged in the business of Commission Agent of agricultural commodities at Agricultural Produce Market Committee (APMC), Vasna, Ahmedabad. There was a survey action u/s. 133A of the Act at the business premises on 15/10/2013 as well as a search action u/s. 132 of the Act at the residential premises of the assessee. Following the search action notice u/s. 153A of the Act was issued on 26.08.2014 and the assessee filed his Return of Income for the Asst. Years 2008-09 to 2012-13.
During the course of assessment proceedings, there were NO incriminating materials were found or seized. The assessee filed his original Returns of Income u/s. 139(1) of the Act as well as in response to the notice u/s. 153A of the Act. AO after making various hearings made some disallowances.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed by the assessee.
Conclusion- It is well settled Principle of law by various judgments rendered by the Hon’ble Apex Court and Jurisdictional Gujarat High Court, when an assessment has to be made in relation to the search or requisition u/s.153A of the Act, namely, in relation to material disclosed during the course of search or requisition, if in relation to any particular assessment year, at the same time when there is no incriminating material found, no addition or disallowance can be made in relation to that assessment year in exercise of powers under section 153A of the Act and the earlier assessment shall have to be reiterated. This legal preposition is now settled by the Hon’ble Supreme Court by judgments dated 2404-2023 in the batch of cases namely PCIT -Vs- Abhisar Buildwell Pvt. Ltd. holding that in respect of completed assessments/ unabated assessments, no addition can be made by Assessing Officer in the absence of any incriminating material found during the course of search.
