ITO Vs Unicorn Land Developers Pvt. Ltd. (ITAT Kolkata)
No Addition in Unabated 153A Assessment Without Incriminating Material – ITAT Kolkata Upholds Deletion of ₹1.15 Crore Share Capital Addition
The Kolkata Bench of the ITAT dismissed the Revenue’s appeal and upheld deletion of ₹1.15 crores added u/s 68 in the hands of Unicorn Land Developers Pvt. Ltd. for AY 2012-13, holding that no addition can be made in an unabated assessment under section 153A in the absence of incriminating material found during search.
The assessee’s original assessment had already been completed u/s 143(3) on 02.03.2015. A search was conducted on the Uniglobal Group on 09.09.2015 and proceedings u/s 153A were initiated. The AO treated share capital and premium of ₹1.15 crore as unexplained cash credits only on the basis of books and non-compliance of summons by shareholders, without relying on any seized incriminating material.
The CIT(A) deleted the addition by applying the Supreme Court ruling in PCIT v. Abhisar Buildwell Pvt. Ltd., holding that since the assessment had not abated on the date of search and no incriminating material was found, the AO lacked jurisdiction to make any addition.
The Tribunal affirmed that:
- The assessment year was unabated on the date of search.
- The AO had not referred to any seized incriminating material relating to share capital.
- In such cases, additions in 153A proceedings are barred by law as per Abhisar Buildwell (SC).
- The issue was also squarely covered by the assessee’s own earlier year decision.
Accordingly, the ITAT dismissed the Revenue’s appeal, upheld deletion of ₹1.15 crore, and dismissed the assessee’s cross-objection as infructuous
FULL TEXT OF THE ORDER OF ITAT KOLKATA
