The Delhi bench of Income Tax Appellate Tribunal (ITAT) has held that assessment under section 153C without incriminating material is invalid and no additions can be made without any clear evidences under Section 153A of the Income Tax Act 1961.
In the instant case the assessee company has filed its return of income for the relevant assessment year. During the course of assessment proceedings the Assessing Officer found that the assesse company has received such a huge amount of Rs. 6, 50, 00,000 on fresh share capital and share application money and the assessee was asked to provide the details about the said amount.
The assessee filed all the details regarding the said amount including the details of the companies from where the share application money received by the assessee. But the Assessing Officer also contended that there wasn’t getting a response from one of the said companies about 2 crores therefor he treated the said amount as unexplained. Hence the Assessing Officer issued notice under section 133(6) of the Income Tax Act and also made additions accordingly.
While allowing the appeal of the assessee on the basis of judicial decisions, the bench comprising of Judicial Member Bhavnesh Saini and Accountant Member L.P.Sahu observed that in this case the Assessing Officer can’t found any incriminating materials during the time of search. And the assessee also submitted the relevant documents which are reflected the fact that the Assessing Officer was conducted a search under section 132(1) of the act. And the Assessing Officer has failed to detect any incriminating materials as a result of the search conducted by him. Hence the bench declared that the Assessing Officer cannot make any additions under section 153A of the Act.
