No assessment u/s 153A (of Income Tax Act, 1961) in absence of any seized incriminating material
No assessment u/s 153A (of Income Tax Act, 1961) in absence of any seized incriminating material
Marichika Properties Pvt Ltd was in real estate business. It declared nil income. Consequent to search u/s 132 (of Income Tax Act, 1961) on Amtek Group, notice u/s 153A (of Income Tax Act, 1961) was served on assessee. Assessment u/s 143 (of Income Tax Act, 1961) r.w.s. 153A (of Income Tax Act, 1961) was completed at income of Rs 1,10,83,618. AO made addition u/s 40A(3) (of Income Tax Act, 1961). CIT(A) confirmed addition. ITAT held that no assessment can be made u/s 153A (of Income Tax Act, 1961) in absence of any seized incriminating material. It quashed proceedings.-500661
1. Marichika Properties Pvt Ltd was engaged in the business of real estate.
2. It declared nil income.
3. Consequent upon search u/s 132 (of Income Tax Act, 1961) on the Amtek Group, notice u/s 153A (of Income Tax Act, 1961) was served on the assessee.
4. Assessment u/s 143 (of Income Tax Act, 1961) r.w.s. 153A (of Income Tax Act, 1961) was completed at a total income of Rs. 1,10,83,618.
5. AO made addition u/s 40A(3) (of Income Tax Act, 1961).
6. CIT(A) confirmed the addition.
The ITAT held as under:
7. Now, the law is quite well settled that, no assessments can be made under Section 153A (of Income Tax Act, 1961) in the absence of any seized incriminating material.
8. Respectfully following the ratio laid down by the Hon'ble Jurisdictional High Court in the above case, we hold that the assessments made under Section 153A (of Income Tax Act, 1961) in the present case are also invalid and is therefore we hereby quash as such.
Case Reference - Marichika Properties Pvt. Ltd. Vs. DCIT
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: 'E': NEW DELHI
BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND
SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER
ITA Nos. 5685 & 5686/Del/2013
(Assessment Years: 2009-10 & 2010-11)
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