Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 2000 - AT - Income TaxAssessment u/s 153A - Addition u/s 14A - basis of incriminating material found as a result of search or not? - CIT-A deleted the addition - HELD THAT:- Assessee has filed its return of income under Section 139(1) of the Act on 30.09.2010 and the said return of income was processed under Section 143(1) of the Act on 02.05.2011. It is also not disputed that on the date of search and seizure operation on 12.10.2011 no assessment proceedings for the impugned assessment year was pending before the AO - it is not a case of abated assessment proceeding which has to be completed under Section 153A - It is neither denied nor disputed by the learned D.R. that the disputed disallowance under Section 14A r.w. Rule 8D was not on the basis of any incriminating material found as a result of search and seizure operation carried out in the case of the assessee. Rather, the AO on the basis of the audited accounts of the assessee has found out the investments made and proceeded to make the disallowance under Section 14A r.w. Rule 8D. In CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD., ALL CARGO GLOBAL LOGISTICS LTD. [2015 (5) TMI 656 - BOMBAY HIGH COURT] held where assessment proceeding was not pending on the date of search and seizure operation, the AO in a proceeding u/s 153A retains the power to assess or reassess income on the basis of incriminating material found as a result of search. In the present case the disallowance made under Section 14A r.w. Rule 8D is not on the basis of any incriminating material found as a result of search. That being the case, learned CIT(A) was justified in deleting the disallowance - Decided against revenue.
|