ITAT rejects Cable Operator's Plea, Upholds ₹5.2 Lakh Income Addition from Seized Records [Read Order]
The tribunal found no merit in the company's contention that the income estimation was arbitrary, as the seized documents provided a clear basis for the calculations.
![ITAT rejects Cable Operators Plea, Upholds ₹5.2 Lakh Income Addition from Seized Records [Read Order]](https://images.taxscan.in/h-upload/2025/07/24/2068427-cable-operators-plea-taxscan.webp "ITAT rejects Cable Operators Plea, Upholds ₹5.2 Lakh Income Addition from Seized Records [Read Order]")
The Income Tax Appellate Tribunal (ITAT), Cochin bench, has dismissed the appeal filed by a cable operator, upholding the addition of ₹5.22 lakh as undisclosed advertisement income based on documents seized during a search operation. The tribunal ruled that the assessing officer was justified in making the additions under Section 153A of the Income Tax Act, 1961, as they were supported...
The Income Tax Appellate Tribunal (ITAT), Cochin bench, has dismissed the appeal filed by a cable operator, upholding the addition of ₹5.22 lakh as undisclosed advertisement income based on documents seized during a search operation. The tribunal ruled that the assessing officer was justified in making the additions under Section 153A of the Income Tax Act, 1961, as they were supported by incriminating evidence.
The case involved Trivandrum Cable Network, a cable television operator, against whom search operations were conducted in November 2010. During the search, authorities seized diaries and notebooks that revealed undisclosed advertisement income. The assessing officer added ₹5.22 lakh as undisclosed income along with other additions totaling ₹16.18 lakh for the assessment years 2005-06 to 2012. The company appealed before the Commissioner of Income Tax (Appeals), which partially allowed some additions but upheld the key advertisement income addition.
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The cable operator had argued that additions under Section 153A could only be made strictly based on incriminating material found during searches, citing the Supreme Court's judgment in Pr.CIT v. Abhisar Buildwell (2021). However, the ITAT observed that the additions were indeed based on seized diaries that clearly showed unaccounted advertisement receipts. The tribunal noted that while the Supreme Court had set parameters for Section 153A additions, also the Kerala High Court in CIT v. Hotel Meriya (2014) had clarified that estimation of income was permissible when supported by seized material.
Single Member Bench of Accountant Member Inturi Rama Rao, while dismissing the appeal, emphasized that the assessing officer had properly justified the additions based on concrete evidence found during the search. The tribunal found no merit in the company's contention that the income estimation was arbitrary, as the seized documents provided a clear basis for the calculations.
The ITAT's decision reinforces the tax department's authority to make additions under search assessments when supported by documentary evidence. The ruling comes as a setback for the cable operator, which had challenged the additions across multiple assessment years in a consolidated appeal. The tribunal disposed of all six appeals through this common order, maintaining the validity of the tax department's actions based on the seized records.
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