Namah Shivaya Marketing Private Limited Vs ITO (ITAT Delhi)
No Incriminating Material, No Addition: Delhi ITAT Quashes s.153C Addition in Unabated Year
Delhi ITAT deleted an addition of ₹11.30 lakh made u/s 153C, holding that in an unabated assessment year no addition can be sustained in the absence of incriminating material found during search.
The case arose out of a search conducted on the Tirupati Sunworld Group on 11-11-2014, pursuant to which notices u/s 153C r.w.s. 153A were issued to the Assessee. Although AY 2014-15 was a completed (unabated) year, the AO made addition u/s 68 on the basis of bank deposits, relying on information obtained from the bank u/s 133(6), and not on any seized material. The CIT(A) confirmed the addition.
The Tribunal noted that it was an admitted position that no incriminating document or material relating to the Assessee was found during the search. Relying on the Supreme Court decision in Abhisar Buildwell, the ITAT reiterated that for completed/unabated assessments, jurisdiction u/s 153A/153C to make additions arises only when incriminating material is unearthed during search. In the absence of such material, additions are impermissible, though the Revenue may resort to reopening u/s 147, subject to law.
Applying this settled principle, the ITAT held that the impugned addition was unsustainable and directed the AO to delete the same. The Assessee’s appeal was accordingly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
