Case Law Details
ACIT Vs Varun Beverages Ltd. (ITAT Delhi)
Addition in respect of completed assessments u/s 153A be made solely on the basis of post search enquiry when no incriminating material was unearthed during search is not valid.
A bare perusal of the assessment order shows that there is no mention of any incriminating material found during the course of search with respect to the unexplained advertisement expenses. There is also no incriminating material on which the Assessing Officer has made the other addition i.e., on account of disallowance u/s 14A of the IT Act. Therefore, it is quite clear that the addition in the instant case has been made on the basis of post search inquiry and the addition is not based on any incriminating material found during the course of search. Therefore, the decision of the Hon’ble Delhi High Court in the case of CIT vs. Kabul Chawla (supra) will be clearly applicable to the facts of the present case wherein it has been held that completed assessments can be interfered with by the Assessing Officer while making assessments u/s 153A only on the basis of some incriminating material unearthed during the course of search which was not produced or not disclosed or not made known in the course of original assessments. Since the impugned assessment year is a completed assessment, therefore, the same, in our opinion, cannot be disturbed without any incriminating material found during the course of search. Similar are the cases for assessment years 2009-10 and 2010-11. Since the Revenue failed to bring on record any incriminating material found during the course of search, therefore, the completed assessments in the instant case could not have been disturbed. We, therefore, allow the legal ground raised by the assessee under Rule 27 of the IT(AT) Rules, 1963 and decide the same in favour of the assessee. Since the assessee succeeds on the legal ground, therefore, the appeal filed by the Revenue is dismissed.
FULL TEXT OF THE ITAT JUDGMENT
The above three appeals by the Revenue are directed against the separate orders dated 14.11.2014 of the CIT(A)-31, Delhi relating to Assessment Years 2008-09, 2009-10 & 2010-11, respectively. Since identical grounds have been raised by the Revenue in all these appeals, therefore, these were heard together and are being disposed of by this common order.
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