Addition not Sustainable u/s 153C without Incriminating Material found during Search and Seizure: ITAT [Read Order]
![Addition not Sustainable u/s 153C without Incriminating Material found during Search and Seizure: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/05/Addition-Incriminating-Material-found-during-Search-and-Seizure-Incriminating-Material-Search-and-Seizure-ITAT-taxscan.jpg "Addition not Sustainable u/s 153C without Incriminating Material found during Search and Seizure: ITAT [Read Order]")
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition cannot be made under Section 153C of the Income Tax Act 1961 without finding any incriminating material during the search and seizure operations. Assesses Prajyoti Impex Pvt. Ltd was a resident company. In pursuance to a search and seizure operation under Section 132 of the Income Tax Act, 1961 carried out...
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that the addition cannot be made under Section 153C of the Income Tax Act 1961 without finding any incriminating material during the search and seizure operations.
Assesses Prajyoti Impex Pvt. Ltd was a resident company. In pursuance to a search and seizure operation under Section 132 of the Income Tax Act, 1961 carried out in case of Maconns, Meenu and Yadav Singh Group, Noida, proceedings under Section 153C of the Act were initiated in case of the assessee.
In response to the notice issued under Section 153C of the Income Tax Act, the assessee filed its return of income and participated in the assessment proceedings. Ultimately, the Assessing Officer completed the assessment under Section 143(3) read with Section 153C of the Income Tax Act, making certain additions.
Sunil Kapoor, on behalf of the revenue had failed to bring any material before us to demonstrate that the additions made by the Assessing Officer were on the basis of incriminating material found as a result of search and seizure operation.
T. Kipgen appeared on behalf of the assessee.
The Bench was unable to locate any observation made by the Assessing Officer indicating that the additions made were with reference to any incriminating material found as a result of search and seizure operation conducted under Section 132 of the Income Tax Act
The two-member Bench of Saktijit Dey, (Judicial Member) and B.R.R Kumar, (Accountant Member) dismissed the appeal filed by the revenue referring to a recent judgement delivered in the case of PCIT vs. Abhisar Buildwell P. Ltd held that no addition could be made in an assessment under Section 153C of the Income Tax Act in absence of any incriminating material found as a result of search and seizure operation.
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