Raj Shyama Construction Pvt. Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that no addition can be made u/s 153A of the Income Tax Act without there being any incriminating material relating to unabated assessment year. Therefore, additions made in the assessment order is deleted and appeal is partly allowed.
Facts- The assessee company is a private limited company engaged in the business of contractual work of road construction. A search was conducted on the assessee group on 11.08.2016 and an assessment u/s. 153A was framed for AY 2013-14 on 28.12.2018 in the case of the assessee. In this assessment, the Assessing Officer made an addition of Rs.93,83,826/- on account of purchases made from M/s Raja Construction, solely based on the fact that the said firm had shown sales of Rs.93,83,826/- in its return for the relevant year, which were allegedly made to the assessee.
Conclusion- Held that the addition made by the Assessing Officer in original assessment u/s 143(3) was relating to the same transaction. Further we observed that the year under consideration is unabated and there is no material on record which shows that income escaped in the current assessment year. The findings during search relating to AY 2014-15, therefore, there is no incriminating material relevant for the current assessment year. Therefore, it is settled position of law that no addition can be made u/s 153A without there being any incriminating material relating to unabated assessment year. Therefore, we are inclined to delete the additions made in the assessment order.
