The Income Tax Appellate Tribunal (ITAT) Delhi Bench ruled that no addition could be made in hands of assessee based on the book of another firm.
The assessee Lalman Yadav filed its return of income due to notice issued under Section 153A of the Income Tax Act, 1961 relating to a search action conducted in business and residential premises of Rathi Group.
During the relevant previous years the assessee claimed to have earned Income from house property & Income from business or profession.
Thereafter, based upon the submissions of the assessee the AO relied certain seized materials and made addition
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) {CIT(A)}, who reduced the addition. Thus the assessee filed a second appeal before the tribunal.
During the proceedings, T.M.Shivakumar, the counsel for the assessee submitted that assessment was made without any incriminating material found during the search.Thus the assessment has been drawn under Section 153A of the Income Tax Act and not under Section 153C of the Income Tax Act.
N.C.Swain, Departmental representatives supported the decision of lower authorities and contented that it is not a case where no incriminating material was found at all and the seized material was found directly connected with the undisclosed income.Further corroborate document seized from the premises of Rajesh Bansal both are partners.
The tribunal after reviewing the facts and submissions of the both parties, the single member bench of G. S. Pannu ( president ) and Anubhav Sharma (Judicial Member) relied upon the decision of the Rama traders vs. First ITO observed that no addition could be made, on the basis of presumption raised by section 132(4A), in the hands of the assessee where in the books of another firm, certain figures were found showing the purchase made by the assessee.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
