Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1330 - HC - Income TaxAssessment u/s 153A - incriminating documents/materials found and seized at the time of search or not? - HELD THAT:- It is settled law that where the assessment of the Assessees has attained finality prior to the date of search and no incriminating documents/materials have been found and seized at the time of search, no additions can be made under Section 153A of the Act, as in that eventuality, the cases of Assessee would be of non-abated assessment. (See: CIT vs Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT], Principal Commissioner of Income Tax vs. Bhadani Financiers Pvt. Ltd., [2021 (9) TMI 902 - DELHI HIGH COURT] and PCIT vs. Meeta Gutgutia[2017 (5) TMI 1224 - DELHI HIGH COURT] In the present batch of matters, both CIT (A) and ITAT have given concurrent findings of fact that no incriminating material had been brought on record by the Assessing Officer to sustain the additions. In fact, the ITAT in the impugned order, has held that the allegation of the Assessing Officer that no notices under Section 133(6) of the Act were received by the investors, is irrelevant as the said parties had filed detailed replies in response to the Section 133(6) notices along with the requisite details as required by the Assessing Officer. Upon perusal of the Table reproduced hereinabove, which shows the networth of the investor companies and the investment made in the share capital, this Court is in agreement with the contention of learned senior counsel for the Respondents-Assessees that the investor companies had sufficient networth to make investment in the Assessee’s group of companies. Non examination of witness - As in the present cases, as Assessee were denied the opportunity to cross-examine Mr.Rajesh Agarwal, despite a specific request, this Court is in agreement with the ITAT that his statement needs to be excluded and cannot be relied upon as a piece of evidence to make any addition. In fact the Supreme Court in the case of M/s Andaman Timber Industries [2015 (10) TMI 442 - SUPREME COURT] held that not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a serious flaw which makes the order nullity inasmuch as it amounted to violation of principles of natural justice because of which the assessee was adversely affected. This Court is of the view that no substantial question of law arises.
|