Case Law Details
PCIT Vs Pilot Industries Limited (Delhi High Court)
Delhi High Court held that AO is not empowered to frame block assessment merely on the basis of statement recorded u/s 132(4) without reference to any other material discovered during the search and seizure operations.
Fact-
The present petition is filed by the revenue stating that the ITAT has erred in upholding the order of the CIT(A) and deleting the additions made on account of gross profit ignoring the fact that the said additions have been made after rejecting the books of account which did not reflect true and correct state of affairs of the Assessee Company.
It was also stated that ITAT has erred in concurring with the view of CIT(A) that no addition can be made on the basis of the documents found during the course of search pertaining to different assessment years. The ITAT has erred in not appreciating that the statements of Mr. Vishesh Gupta recorded under Section 132(4) of the Income Tax Act 1961 (‘the Act’) during the course of search proceedings, in the absence of any other material, would in itself constitute ‘incriminating material’.
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