No Incriminating Material, No 153A Additions: ITAT Quashes ₹2.71 Cr

DCIT Vs Rajesh Auto Merchandise Private Limited (ITAT Kolkata) Revenue filed appeal with a delay of 17 days, which was condoned. The only dispute was whether additions made by AO in a 153A assessment for an unabated year could survive without any incriminating material found during search. A search u/s 132 was conducted on 25.09.2020. On the date of search, no assessment was pending for AY 2013-14. Time limit for issue of notice u/s 143(2) had expired, thus the assessment stood completed/unabated. AO made two additions u/s 153A: ₹1,92,00,000 – Foreign exchange fluctuation loss (disallowed...