2024 (2) TMI 42 - AT - Income Tax

Validity of Assessment u/s 153A - as argued no incriminating material/document as found during the course of search - HELD THAT - As perused the materials available on record and considering the submissions made by the parties as the additions were made in the absence of any incriminating materials found during the search, by following the ratio laid down in the case of case of Abhisar Buildwell Pvt. Ltd. 2023 (4) TMI 1056 - SUPREME COURT we delete the additions made by the A.O. which was confirmed by the Ld. CIT(A). Decided in favour of assessee.

Summary

Issues Involved:
The issues involved in the judgment include the validity of the assessment order passed by the Commissioner of Income Tax (Appeals) under section 153A r.w.s. 143(3), legality of the assessment order, addition made without incriminating material, violation of mandatory provisions of Section 153D, lack of providing copies of material and evidences, violation of statutory conditions, validity of notices issued u/s 142(1) and 143(2), rejection of specific objections raised by the appellant under section 124, addition of undisclosed investment u/s 68, confirmation of interest charged u/s 234A, 234B, and 234C, and determination of tax liability u/s 115BBE.

Validity of Assessment Order:
The appellant challenged the assessment order passed by the Commissioner of Income Tax (Appeals) under section 153A r.w.s. 143(3) on various grounds, including violation of circular no. 19/2019 issued by CBDT regarding Document Identification Number (DIN), lack of valid jurisdiction, and absence of incriminating material found during the search. The appellant contended that the assessment order was unlawful and invalid, and the proceedings were in violation of mandatory provisions of Section 153D. The appellant also argued that the assessment order was passed without providing copies of material and evidences, and without giving adequate opportunity to rebut the same. The Tribunal, after considering the submissions, deleted the additions made by the Assessing Officer as they were not based on any incriminating material found during the search, following the precedent set in the case of PCIT vs. Abhisar Buildwell Pvt. Ltd.

Other Grounds of Appeal:
The appellant raised additional grounds of appeal related to the validity of notices issued u/s 142(1) and 143(2), rejection of specific objections under section 124, addition of undisclosed investment u/s 68, confirmation of interest charged u/s 234A, 234B, and 234C, and determination of tax liability u/s 115BBE. The Tribunal allowed the appeal filed by the assessee, thereby granting relief on these grounds as well.

Conclusion:
The Tribunal, after hearing both parties and reviewing the materials on record, concluded that the additions made by the Assessing Officer without any incriminating material found during the search were not sustainable. Therefore, the Tribunal deleted these additions and allowed the appeal filed by the assessee. The order was pronounced in open court on 30th January, 2024.