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2019 (7) TMI 87 - AT - Income TaxValidity of the assessment order passed u/s 153C - lack of satisfaction recorded by concerned authorities for issuance of notice u/s 153C - HELD THAT:- As could be seen, the Bench on 20th November 2018 had directed the Revenue to produce the satisfaction recorded for issuance of notice u/s 153C. In compliance to the aforesaid direction of the Bench, learned Departmental Representative has furnished before us certain communications received from the Assessing Officer stating that as per assessment record, satisfaction was recorded for issuance of notice u/s 153C. By allowing itself to go unrepresented at the time of hearing of appeals, the assessee has not controverted the aforesaid facts. No merit in the grounds raised by the assessee. Accordingly, these grounds are dismissed. Addition u/s 41(1) - HELD THAT:- We find that the addition made by the AO is not on the basis of any incriminating material found as a result of search and seizure operation. In fact, the Assessing Officer has simply repeated the addition made in the original assessment order. Thus, not only the addition made is not on the basis of any incriminating material found during the search, but, it was also subject matter of dispute in the original assessment order. That being the case, the AO could not have made the addition in the impugned assessment order. Disallowance of interest expenditure by applying the provisions of section 40A(2)(b) - HELD THAT:- It is a fact, in the impugned assessment order, the AO has repeated the same addition as was made in the original assessment order. If the addition made in the original order does not survive by virtue of the order passed by CIT(A) against the original assessment order, the same cannot survive in the assessment order passed u/s 143(3) r/w section 153C - the addition deserves to be deleted. Notably CIT(A) in the impugned order following the orders of the Tribunal for the preceding assessment years has held that interest rate of 19,5% per annum is reasonable. In any case of the matter, since the disputed addition is not on the basis of any incriminating material, it has to be deleted - decided in favour of assessee
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