2020 (9) TMI 370 - ITAT DELHI - Income Tax

Head Note / Extract:
Assessment u/s 153A - disallowance of freight charges u/s 37(1) - HELD THAT:- In the present case though search was conducted in the case of assessee as well as SRS Group, but, the A.O. made disallowance of freight charges because the assessee could not produce the bills and requisite vouchers in respect of the claim of the freight charges. It is, therefore, clearly apparent that the disallowance of freight charges are made in the absence of any incriminating material found during the course of search. A.O. has framed assessments u/s 153A r.w.s. 143(3). Thus, the above Judgments MEETA GUTGUTIA PROP. M/S. FERNS ‘N’ PETALS [2017 (5) TMI 1224 - DELHI HIGH COURT] and KABUL CHAWLA [2015 (9) TMI 80 - DELHI HIGH COURT] are clearly apply in the case of assessee. Further, on identical facts in the case of assessee for the A.Y. 2009-2010 deleted the similar addition. Therefore, following the above decisions and discussion above, we are of the view that both the additions are liable to be set aside. - Decided against revenue.