DCIT Vs NRVS Steels Ltd. (ITAT Raipur)
Conclusion: In absence of any incriminating material unearthed during the search from the premises of assessee for an unabated / completed assessment year, no addition under section 68 on account of undisclosed income was justified and AO could re-open the assessment in exercise of powers under sections 147/148, subject to fulfilment of the conditions as envisaged/mentioned under sections 147/148.
Held: Assessee was a Public Limited Company, engaged in manufacturing of Sponge Iron through processing Iron Ore, coal and dolomite. A search and seizure operation u/s 132 was carried out on various premises of the NR Group and its associates / concerns. Consequently, notice u/s 153A was issued for the AY 2008-09 to 2017-18. In response to the notice, assessee filed returned of income for the AY 2008-09 to 2017-18. During the course of assessment proceedings, AO found that assessee had received share application money / share premium in Assessment years 2008-09 to 2014-15 from various Kolkata based Investor Companies, aggregating to Rs.10,08,25,658/- including share capital and share premium. After considering assessee’s response, explanations and submissions, AO proceeded to make an addition of Rs.2,19,00,000/- for AY 2008-09, similar additions of Rs.2,25,00,000/- for the AY 2009-10 and 62,00,000/- for 2011-12 on account of undisclosed income u/s 68. It was held that as the year concerned was an unabated assessment years and also the documents surfaced during the search and seizure action were not in the nature of incriminating document / material, therefore, respectfully following the principle of law laid down by Hon’ble Apex Court in the case of Abhishar Buildwell, CIT(A) had rightly and judiciously decided the issue by vacating the addition of Rs.2.19 crore for the AY 2008-09 and 2009-10. In absence of any incriminating material unearthed during the search from the premises of assessee for an unabated / completed assessment year, but certain documents were seized which could not be termed as incriminating material, the revenue should be at liberty to undertake necessary legal recourse available in the aforesaid matters following the guiding principal laid down by Hon’ble Apex Court in the case of Abhishar Buildwell (supra) that, However, the completed/unabated assessments could be re-opened by the AO in exercise of powers under sections 147/148, subject to fulfilment of the conditions as envisaged/mentioned under sections 147/148 and those powers were saved.
