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2022 (2) TMI 577 - AT - Income TaxAssessment u/s 153A v/s 153C - Addition on the basis of unsecured loans appearing in the balance-sheet - Validity of search proceedings - CIT(A) upheld the action of the A.O.- HELD THAT:- Admittedly, no search has taken place at the premises of the assessee. The seized documents relating to the assessee-company were found from 17/6, Hansapal Industrial Complex. Mathura Road, Faridabad which belong to LV Rustore Appliations Pvt. Ltd., R R Carwell Pvt. Ltd., and Elvi Bardahl India Pvt. Ltd. Therefore, assumption of jurisdiction under section 153A instead of 153C, in our opinion, vitiates the entire assessment proceedings. Addition in the instant case has been made on the basis of the entries already appearing in the balance-sheet under the Head “Unsecured loans” and the said addition is not made on the basis of any incriminating material found during the course of search. We further find the period for issue of notice under section 143(2) expired and the assessment had attained finality. Therefore, by following the decision of Singhad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] and Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] the addition made by the A.O. and sustained by the Ld. CIT(A), in our opinion, is not in accordance with Law. We, therefore, allow the additional grounds raised by the assessee and quash the assessment proceedings initiated under section 153A instead of provisions of Section 153C - Decided in favour of assessee.
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