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2017 (10) TMI 592 - AT - Income TaxAssessment made u/s 143(3) r.w.s. 153A - proof of incriminating material being seized/ found during the course of search - Held that:- It is the settled law that in a case of non-abated assessment addition can be made in the assessment completed under section 143(3) r.w.s. 153A on the basis of the material found/seized during the course of the search. So far the additions in respect disallowance of PF, ESIC, 5% of the expenses disallowed under section 35D and disallowance for depreciation on actual brand value we noted that the disallowances have been made by the AO in the respective assessment years without bringing out any seized material during the course of assessment proceedings. In view of above we are bound to follow we hold that these additions in each of the assessment years are made by the AO beyond his jurisdiction. We, therefore, delete all these additions in each of the assessment years. Additions in respect of disallowances on account of commission on purchases and sales - disallowances were made by the AO on the basis of the statement of Shri Murarilal Agarwal who is one of the Directors of the company recorded under section 132(4) - Held that:- The issue involved is duly covered by the decision of the Hon'ble Kerala High Court in the case of CIT vs. St. Francis Clay Decor Tiles [2016 (6) TMI 378 - KERALA HIGH COURT] wherein held that the statement recorded during the course of search is a valuable piece of evidence while interpreting the phraseology ‘incriminating’ is used by the Parliament. They have also clarified that neither under section 132 or under section 153A the phraseology ‘incriminating’ is used by the Parliament. Since the Hon'ble Kerala High Court has taken the recorded statement as a valuable piece of evidence and no contrary evidence was brought to our notice by the learned A.R. we, therefore, during the A.Y. 2007-08 upheld the addition of ₹ 9,57,372/- incurred by way of commission on purchases and ₹ 9,57,372/- incurred by way of commission on sales
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