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2014 (8) TMI 520 - AT - Income TaxAssessment order u/s 153A - Absence of any incriminating material belonging to assessee – Held that:- The return was processed u/s 143(1) of the Act and time limit for issuance of notice u/s 143(2) had expired on the date of search and it was held that no assessment was pending in that case and thus there was no question of abatement of assessment - addition in the assessment u/s 153A would be made only on the basis of incriminating material found during the search – Relying upon Kusum Gupta Versus DCIT, Central Circle-15 New Delhi [2013 (11) TMI 665 - ITAT DELHI] CIT(Appeals) was not justified in upholding the validity of the proceedings initiated under sec. 153A of the Act and the assessment framed under sec. 153A read with section 143(3) in furtherance thereto - the initiation of proceedings under sec. 153A of the Act and framing of assessment under sec. 153A read with sec. 143(3) in furtherance thereto in absence of any incriminating material found during the course of search were not valid – Decided in favour of Assessee. Unexplained cash credits u/s 68 – Held that:- CIT(A) has rightly come to the conclusion that there is no actual credit in the books of the assessee on account of M/s. Jayna Closure, Proprietor Rakesh Kumar as stated by the AO whereas the same was accounting adjustment passed in the accounts of S.H. Ltd. and that since the identity of S.H. Ltd., the source of payment is also not in dispute as well as the transaction entered into by the assessee with S.H. Ltd. are also not in dispute – the order of the CIT(A) in deleting the addition made by the AO u/s 68 is justified - Revenue has also not been able to rebut the finding of the CIT(A) that the amount of ₹ 19,17,500 was outstanding in the AY 2001-02 also, which was a carried forward balance in the current year from the last many years - CIT(A) has rightly deleted the addition made by the AO. Creditworthiness and genuineness of transaction – Held that:- CIT(A) has rightly come to the conclusion that the creditor was in existence and the assessee had filed sufficient evidence to support its contention regarding the creditworthiness and genuineness of the transaction as the payments have been received through banking channel and the bank statement filed also supports the case of the assessee – CIT(A) was justified in deleting the addition of ₹ 2,87,10,000 made by the AO u/s 68 – Decided against Revenue.
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