The Income Tax Appellate Tribunal (ITAT), Delhi Bench ruled that the additions based on an estimated basis cannot be sustained in Law.
A search and seizure operation under section 132 of the Income Tax Act, 1961 was conducted on the premises of the assessee, Pradeep Kumar Sharma comprising Maconss.
In response to notice under section 153A, the assessee filed return of income declaring income of Rs.1,97,115, Rs.2,69,519, Rs.3,50,640, Rs.9,41,660, Rs.13,00,890 and Rs.7,52,800 for Assessment Year 2009-10 to 2012-13, 2014- 15 and 2015-16 respectively.
Later on, statutory notices were issued and AO completed the assessments by making additions or disallowances on account of unaccounted commission income earned by the assessee.
The AO estimated the illicit commission of the appellant at the rate of 1500 per bond which cannot be faulted within absence of any other material on the contrary, which was upheld by the CIT(A).
The assessee contended that The A.O. merely made an estimated addition without referring to any seized material in all the assessment years.
The coram of N.K.Billaiya and Bhavnesh Saini noted that the AO without bringing any corroborative evidence, estimated the additions on account of commission earned, cannot be made in any of the assessment years.
Therefore, the ITAT set aside the Orders of the authorities below and delete all the additions in all the assessment years.