Maheshwari Coal Benefication & Infrastructure Private Limited Vs DCIT Circle–1(1) (ITAT Nagpur)
Summary: The Income Tax Appellate Tribunal, Nagpur Bench, adjudicated seven appeals filed by Maheshwari Coal Benefication & Infrastructure Private Limited for assessment years 2014-15 to 2020-21 against orders dated 18.01.2024 passed by the CIT(A)-3, Nagpur. A search and seizure action under section 132 was conducted at the assessee’s premises on 11.07.2019. Assessments for A.Ys. 2014-15 to 2019-20 were completed under section 143(3) read with section 153A, while A.Y. 2020-21 was assessed under section 143(3). The Tribunal initially considered additions made in the unabated years on account of unexplained cash credits and interest on unsecured loans. Relying upon the Supreme Court ruling in PCIT v. Abhisar Buildwell (P) Ltd., the Tribunal held that, in completed/unabated assessments, additions under section 153A cannot be made in the absence of incriminating material found during the search. It further held that a statement recorded during a search conducted against a third party could not be used as incriminating material against the assessee without following the statutory mechanism under section 153C. The Tribunal also considered the assessee’s grievance that it had not been afforded cross-examination of the person whose statement was relied upon by the Assessing Officer, referring to the settled principle in Andaman Timber Industries concerning denial of cross-examination.
