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2023 (3) TMI 427 - AT - Income TaxAssessment proceedings completed u/s 153A - unexplained investment of the assessee u/s 69 - HELD THAT:- Assessee has produced sufficient documents to substantiate that the loan/booking advance of Siddha Group were made by independent entities from their own funds reflected in the audited balance sheet and there is no evidence that such loan/booking advance are funded by the assessee or any other entity acting on behalf of the assessee. There is a complete lack of evidence in the hands of ld. AO which could indicate that the investment made in the Siddha Group in the form of loan and booking money is made by the assessee and the alleged addition seems to be made purely on suspicion, surmises and conjectures. The only evidence which ld. AO had was the statement given by the assessee during the course of search which has been retracted within three days himself and therefore, there remains no sanctity to refer/rely on such a statement which has been retracted within three days of the date of search. Even otherwise on legal grounds also since no incriminating material has been referred to by ld. AO which has a direct nexus with the assessee nor is there any material which could throw any light that the assessee has parked its unaccounted funds with the Siddha Group as loans and advances/booking money of the Siddha Projects the proceedings carried out u/s 153A of the Act deserves to be quashed since for AY 2014-15 & AY 2015-16 the original returns were duly submitted on 11.06.2014 & 21.08.2015 and the time limit for issuance of notice u/s 143(2) of the Act stood expired and no proceedings u/s 143(3)/147 of the Act were pending on the date of search, therefore, both the assessment years were completed assessment years which cannot be abated and for such completed assessment year, no additions can be made unless until supported by incriminating material found during the course of search belonging/pertaining to the assessee - Decided against revenue.
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