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2014 (9) TMI 625 - AT - Income TaxValidity of assessment u/s 153C r.w.s. 143(3) Estimation of business income on higher side Assessment made on assumptions Held that:- The mandatory conditions of recording satisfaction not complied with to invoke the jurisdiction u/s 153C of the Act - addition in search cases needs to be supported by the seized materials found at the time of search - no material seized in the search shows that it is undisclosed income - the addition is made on the basis of the scribbling found in the Cheque book counter foils found in the survey which was conducted subsequent to the search proceedings - The assessment is not on the basis of the information secured from the incriminating material but on assumption and presumption - Thus, the addition in assessment is bad in law on the facts and circumstances of the case AO has made addition as Unexplained investments by comparing the AOs own determined estimated income with that of the determined Unexplained investment and brought to tax the higher of the both, which is not permissible in search proceedings - the assessment is purely on the basis of surmises and estimate and it is not a case of any incriminating material seized during the course of search. The issue relating to validity of assessments made by the AO was not only specifically raised by the assessee in the appeals filed before the CIT(A), but it was also vehemently argued by making a detailed submission and this position, which is clearly evident that the legal issue challenging the validity of assessments was not given up by the assessee - the issue relating to validity of assessments is a legal issue and the assessee is entitled to raise the same for the first time even before the Tribunal as decided in National Thermal Power Corporation Ltd. v. CIT [1996 (12) TMI 7 - SUPREME Court] thus, the matter is remitted back to the CIT(A) for adjudication Decided in favour of assessee.
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