The Madhya Pradesh High Court upholds the order of Income Tax Appellate Authority (ITAT) upon the deletion of addition when there is no incriminating material found during the search.
The appeal was filed by the Principle Commissioner of Income Tax under section 260A of Income Tax Act 1961 against the order of ITAT.
Section 260A of Income Tax Act 1961 provides provision of appeal from ITAT to the High court, if the High Court satisfied any substantial question of law.
Veena Mandlik Advocate appeared for the appellant/revenue and Ibrahim Kannodwala, Advocate appeared for the respondent/Assessee
Substantial Question of law which has been raised by the appellant in this appeal is “whether in absence of any incriminating documents seized during the course of search, the Assessing Officer is justified in making the addition in non-abated assessment orders under section 153-A read with Sec 143(3) of the Income Tax Act 1961.
After considering the submission of the both parties the single bench of Justice Sushrut Arvind Dharmadhikari dismiss the appeal filed by the revenue and observed that “No incriminating documents during the course of search were found, the order in appeal could not be said to have suffered any illegality as would give rise to proposed substantial question of law”.
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