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2023 (8) TMI 520 - HC - Income TaxAssessment u/s 153A - disallowance u/s 40(a)(ia) - non deduction of TDS on sub-contractors payments - Whether incriminating material found in the course of search? - HELD THAT:- The assessee had not kept his income undisclosed for the assessment year 2011-12. The statements of the subcontractors belonging to the Naga tribe were recorded and their statements have not been contradicted or controverted by the Assessing Officer. It was also not controverted that since the work was done by the Naga sub-contractors, therefore there was no requirement of deduction of tax at source, as their income is exempted u/s 10(26) of the I.T. Act. The subcontractors, through their statements both oral and written, have affirmed that the work was done by them for the assessee through M/s Meitei with the understanding to pay 2% commission from the payment of the assessee. Through concurrent decisions by CIT(A) as well as by the ITAT, it was held that no incriminating material was found in the course of search. It was also held that the assessment framed u/s 143(1) of the Act for the assessment year 2011-12, which was unabated/concluded assessment, deserves to be undisturbed in the absence of any incriminating material found in the course of search. As decided in Abhisar Buildwell P. Ltd. [2023 (4) TMI 1056 - SUPREME COURT] no addition can be made in respect of the completed assessments in absence of any incriminating material. in the facts of the present case where inference drawn from the Ledger/Books of Accounts found during the search is similar to the case of CIT v. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] is thus answered in the affirmative. It is also held that the ITAT, Guwahati Bench was justified in deleting the disallowance u/s 40(a)(ia) of the I.T. Act, by holding that the proceeding u/s 143(1) is an assessment which is concluded and unabated and it cannot be disturbed as the Ledger/Books of Accounts and the statements recorded, during the search do not constitute incriminating material. Decided in favour of assessee.
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