Satish Soin Vs ACIT (ITAT Chandigarh)
ITAT Chandigarh held that addition towards bogus Long Term Capital Gain u/s. 153A of the Income Tax Act cannot be sustained in the absence of any incriminating material found during the course of search. Accordingly, appeal allowed and addition deleted.
Facts- The assessee has filed his return of income declaring total income at Rs.6,69,848/-. This income has been declared as ‘Business and Profession Income’ from M/s Ram Lal Satish Kumar, Salary Income from Saber Packaging Pvt. Ltd. He has declared capital gain income from other sources. The AO passed a scrutiny assessment u/s 153A read with Section 143(3) of the Act on 31.03.2015 because a search was conducted at the premises of the assessee on 28.12.2012 u/s 132 of the Income Tax Act. This order was revised by Commissioner u/s 263 vide his order dated 22.02.2017. Commissioner was of the view that claim of capital gain was not genuine and AO failed to examine this aspect. Consequently, after 263, fresh assessment order is being passed on 20.12.2017.
CIT(A) dismissed the appeal. Being aggrieved, assessee has preferred the present appeal.
Conclusion- Mala Builders Pvt. Ltd Vs CIT (ITAT Chandigarh) held that in the absence of any incriminating material found during the course of search and the assessment proceedings having not abated at the time of search, the assessing officer has no jurisdiction to make the addition under section 153A of the Act. This ground of appeal of the assessee is therefore allowed. The additions made in the order under section 153A /143(3) are accordingly deleted.
