PCIT Vs Satya Prakash Gupta (Delhi High Court)
The case of PCIT vs Satya Prakash Gupta, as decided by the Delhi High Court, revolves around the applicability of Section 153A of the Income Tax Act, 1961, and the necessity of incriminating material for making additions to income during assessment. Here are the key points from the judgment:
The assessee, engaged in a contract with a non-resident entity (CMF) for supply of currency paper to RBI, received commissions. A search under Sections 132 and 133A was conducted, and subsequent assessments were made under Section 153A for AYs 2012-13 to 2017-18.
The Assessing Officer (AO) added certain amounts as undisclosed income, alleging continuation of payments from CMF through other foreign entities post-termination of the agreement in 2012. The CIT(A) partly allowed the appeal, deleting additions for AYs 2014-15 to 2017-18 but upheld them for AYs 2012-13 and 2013-14. The ITAT subsequently deleted the additions for AYs 2012-13 and 2013-14, prompting appeals by the Revenue.
The Delhi HC reiterated that under Section 153A, assessments for six years prior to the year of search are to be abated, and additions can only be made based on incriminating material found during the search. No additions can be made for completed assessments in the absence of such material.
