ITO Vs Unicorn Land Developers Pvt. Ltd. (ITAT Kolkata)
No Addition in Unabated Search Year Without Incriminating Material: ITAT Kolkata Deletes ₹1.15 Cr Share Premium Addition
The Kolkata ITAT dismissed the Revenue’s appeal and upheld deletion of ₹1.15 crore added under Section 68 on account of share capital and share premium in the case of Unicorn Land Developers Pvt. Ltd. for AY 2012-13. The assessee’s assessment for the year had already been completed under Section 143(3) on 02.03.2015, much prior to the search conducted on 09.09.2015, and therefore the year was an unabated assessment year under Section 153A.
The Assessing Officer made the addition by relying on books of account and non-compliance of shareholders with summons, without referring to any incriminating material seized during the search. The CIT(A) deleted the addition by applying the Supreme Court ruling in PCIT v. Abhisar Buildwell Pvt. Ltd., holding that in unabated assessments no addition can be made in the absence of incriminating material.
The Tribunal affirmed this view and also relied on its own earlier decision in the assessee’s case for AY 2011-12, where identical additions were deleted on the same principle. Since no search material existed to justify the addition, the Revenue’s appeal was dismissed and the assessee’s cross-objection was also dismissed as infructuous.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
