Case Law Details
Pr. CIT Vs Daksha Jain (Rajasthan High Court)
1. Various questions of law with respect to dis-allowance and additions made in the course of re-assessment proceedings are urged by the Revenue in its appeal under Section 260A of the Income Tax Act, 1961 (for short, ‘the Act’)
2. The search under Section 132 of the Act was conducted in the assessee’s premises on 10.2.2010. This resulted in notices under Section 153A which culminated in search assessment orders for block period between assessment years 2004-05 to 2010-11. The additions made were on identical grounds i.e. business loss, claim for dis-allowance of interest of substantial amount, additions made on account of unexplained cash entries in the bank accounts, etc.
3. The ITAT noticed inter alia that all the additions were not based upon any fresh materials seized during the course of search. That was the first ground for setting aside the order ; the ITAT also considered and decided in favour of the assessee on the merits of the additions.
4. The approach of the ITAT of setting aside the search assessment on the ground that no fresh materials was seized or discerned in the course of search is correct and conform to the view taken by the Delhi High Court in the case of Commissioner of Income Tax (Central)-III vs. Kabul Chawla reported in 380 ITR 573. That judgment has been followed by various High Courts including this Court
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Very useful information .