ITO Vs Uniglobal Papers Pvt. Ltd (ITAT Kolkata)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Kolkata has dismissed appeals filed by the Income Tax Officer (ITO) against Uniglobal Papers Pvt. Ltd., affirming the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] to delete additions made to the company’s income. The core of the dispute revolved around whether an Assessing Officer (AO) can make additions to a previously completed or ‘unabated’ assessment without relying on incriminating material discovered during a search and seizure operation. The tribunal’s decision, which covers the assessment years 2011-12, 2012-13, and 2013-14, establishes a clear jurisdictional limit on the powers of the AO in such cases.
The case originated from a search and seizure action conducted under Section 132 of the Income Tax Act, 1961, on the Uniglobal Group, which includes Uniglobal Papers Pvt. Ltd. The search took place on September 9, 2015, and subsequent dates. Following the search, the AO initiated reassessment proceedings under Section 153A for the relevant assessment years.
For the assessment year 2011-12, the AO made an addition of Rs. 2,71,00,000 to the company’s income, treating it as bogus unsecured loans under Section 68 of the Act. This addition was based on post-search inquiries and statements, not on any material found during the search itself. The company appealed this decision to the CIT(A).
