TMI Blog2023 (2) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... of law and therefore the same is quashed. - Decided in favour of assessee. - ITA No. 93/Ahd/2021 - - - Dated:- 31-1-2023 - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Ms. Astha Maniar , A.R. For the Revenue : Shri A.P. Singh, CIT ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This is an appeal filed by the Assessee as against the Revision order dated 19.03.2021 passed by the Principal Commissioner of Income Tax (Central), Ahmedabad under section 263 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year (A.Y) 2012-13. 2. The brief facts of the case is that the assessee is a Company engaged in the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore a show cause notice dated 24.02.2021 was issued to the assessee calling for his explanation. The assessee in its detailed reply dated 08.03.2021 submitted that the assessment year 2012- 13 had not been abated within the meaning of Section 153A of the Act, existence of incriminating document is a precondition to proceed with the said proceedings and making such additions/disallowances. Since none of the proposed addition, disallowances is found pursuant to the search is based on any incriminating material found during the course of search, no addition could have been made in the non-abated assessment year. Thus the assessee relied upon PCIT vs. Meeta Gutgutia [2018] 96 taxmann.com 468 (SC), Pr.CIT vs. Desai Construction (P.) Ltd. [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng assessee a reasonable opportunity of being heard. 3. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeals: 1. The Ld. PCIT (Central), Ahmedabad erred in law and on facts in holding that the order u/s 143(3) r.w.s 153A of the Act dated 31.12.2018 passed by the AO is erroneous and prejudicial to the interest of the revenue. 2. The Ld. PCIT (Central), Ahmedabad failed to appreciate that while passing the impugned order, the AO only followed the binding decisions of the territorial High Court and rightly refrained from making any addition which was not based on any incriminating document. The Ld. PCIT therefore, erred in treating such order as erroneous and prejudicial to the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicial to the interest of Revenue. When nothing on record to suggest that any material was unearthed during the course of search proceedings under section 132 of the Act. 4. Per contra, the Ld. D.R. appearing for the Revenue supported the order passed by the Ld. PCIT and pleaded to uphold the same. 5. We have given our thoughtful consideration and perused the materials available on record including the Paper Book filed by the assessee. It is seen from record, the original assessment was completed on 22.01.2015 wherein the Assessing Officer made some disallowances on account of court case fine and motor car depreciation. Pursuant to the search action, the assessee filed the very same Return of Income, as there is no incriminating mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs and such assessment had abated. (c) Pr. CIT Vs Saumya Construction (P.) Ltd. [2017] 81 taxmann.com 292 (Guj) Section 153A of the Income-tax Act, 1961 - Search and seizure - Assessment in case of (Condition precedent) - Assessment year 2006-07 - Under section 153A, an assessment has to be made in relation to search or requisition, namely, in relation to material disclosed during search or requisition; if no incriminating material is found during search, no addition can be made on basis of material collected after search. (d) Pr. CIT vs. Sunrise Finlease (P.) Ltd. [2018] 89 taxmann.com 1 (Gujarat) Section 153A of the Income-tax Act, 1961 - Search and seizure - Assessment in case of (Condition precedent) - Assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment or reassessment proceedings for the year under consideration i.e. assessment year 2007-08 were pending, therefore, in the absence of any incriminating material found during the course of the search and seizure proceedings, no addition in respect of the unabated assessment for the year under consideration could be made in the hands of the assessee-company, had thus in the backdrop of the order of the 'Special Bench1 of the Tribunal in case of All Cargo Global Logistics Ltd. v. Dy. CIT [2012] 137 ITD 287/23 taxmann.com 103 (Mum.) and order of Tribunal in case of Asstt. CIT v. Pratibha Industries Ltd. [2013] 141 ITD 151/28 taxmann.com 246 (Mum.) as were available at the time of the assessment proceedings and were specifically rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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