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2022 (1) TMI 1240 - AT - Income TaxAssessment u/s 153A - Whether incriminating material found during the course of search? - additions made on account of difference in interest income and on account of prior period expenses - HELD THAT:- It is observed that search was conducted on 09/11/2017 and accordingly, as per the notice issued by the AO, the assessee had filed its return of income u/s 153A of the Act on 21/03/2018. AO made the additions on the basis of the books of account only without referring to any incriminating material found during the course of search. In respect of interest income, there was a difference in the financial statements and Form 26AS only, We find that the difference has been offered by the assessee in the subsequent assessment years, which is clear from the order of the CIT(A). In respect of prior period expenses, the assessee had debited it in P&L Account and the addition made on this count also by the AO only based on the books of account of assessee, which were audited without referring to any incriminating material found during the course of search. On both the additions made, no incriminating material found with regard to these issues in the search operations. It clearly shows that the basis of additions is only from the books of account of the assessee. Thus we set aside the order of the CIT(A) and direct the AO to delete the additions made on account of difference in interest income and on account of prior period expenses - Decided in favour of assessee.
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