PCIT (Central)-3 Vs TDI Infrastructure Ltd (Delhi High Court)
Delhi High Court held that assuming jurisdiction under section 153C of the Income Tax Act impermissible unless it is satisfied that document / seized material belonged to the assessee. Thus, appeal dismissed.
Facts- Search and seizure operations u/s. 132 of the Income Tax Act, 1961 were conducted in the case of Taneja-Puri Group of cases in various premises on 05.01.2009. During the course of the said search, incriminating material in relation to the respondent were unearthed. Significantly, the premises of respondent company were also covered under a survey operation covered u/s. 133-A of the Act.
The facts as far as AY 2007-08 is concerned, are that a notice u/s. 153C was issued to the Assessee. In response to the said notice, respondent filed its return of income on 20.10.2010, declaring current year income of Rs. 5,38,98,676/-, which was fully setoff against unabsorbed brought forward claim for business losses.
There was a difference between the return filed u/s. 153C and the return dated 30.09.2007 arising on account of additional claim of brokerage paid and interest charged by the respondent which was not claimed earlier. By virtue of Assessment Order dated 31.12.2010 u/s. 153C r.w.s. 143(3) of the Act, AO, made the additions of Rs. 64,34,57,334/- by disallowing the claim for brokerage and interest charges; addition of Rs. 1,15,00,000/- made on the strength of documents recovered from the Respondent’s premises at Kundli and denied claim for deduction u/s. 80(IB) of Rs. 15,45,21,5311- as the respondent, had violated conditions (c) of Section 80 18(10) of the Act.
