Brief of the case:
The ITAT Delhi bench in the above cited case held that in case of completed assessment if notice u/s 153A is issued then addition can be made only on the basis of incriminating material found during the course of search. Therefore, any other addition which has nothing to do with the incriminating material found during the search cannot be sustained.
Facts of the case:
- A search and seizure operation was carried out u/s. 132 of the Income Tax Act, 1961 on 22.03.2011 in the case of Amtek Group of Cases. The assessee company was also covered u/s. 132(1) of the Income Tax Act, 1961 which is a group company of Amtek Group.
- Notice u/s 153A was served upon assessee in response to which assessee filed a NIL return on 09.11.2011. In response to various statutory notices, necessary details were filed by the Assessee’s Authorized Representative from time to time.AO completed the assessment at Rs. 50,000/- for making the disallowance u/s. 14A of the I.T. Act, 1961.
- CIT(A) partly allowed assessee’s appeal. Aggrieved assessee is in appeal before ITAT.
Contention of the Assessee:
- The learned counsel for the assessee contended that during the search and seizure operation, no documentary evidence has been found by the Investigation Wing of the Department on the issue in dispute. The addition in dispute has been made without any incriminating material, hence, this issue is squarely covered by the decision dated 28.8.2015 of the Hon’ble Delhi High Court in the case of CIT vs. Kabul Chawla .
- In the aforesaid case , the court held that in case of completed assessments any addition made without correlating it to the incriminating material found during the search is not allowed.
Contention of the Revenue:
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