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Tax Tribunal Overturns Additions Lacking Incriminating Evidence; Relief Granted Under Income Tax Act for 2014-15. The ITAT allowed the assessee's appeal, quashing the additions made by the AO under Section 2(22)(e) of the Income Tax Act, 1961, for the Assessment Year ...
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Tax Tribunal Overturns Additions Lacking Incriminating Evidence; Relief Granted Under Income Tax Act for 2014-15.
The ITAT allowed the assessee's appeal, quashing the additions made by the AO under Section 2(22)(e) of the Income Tax Act, 1961, for the Assessment Year 2014-15. The Tribunal held that, in the absence of incriminating material found during the search, the additions under Section 153A were unjustified.
Issues: The appeal concerns the correctness of taxability under Section 2(22)(e) of the Income Tax Act, 1961 for Assessment Year 2014-15.
Summary: The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-IV, Kanpur, arising from the assessment order passed by the Assessing Officer under Section 143(3) r.w. Section 153A of the Income Tax Act, 1961. The main contention raised by the assessee was regarding the taxability of Rs. 4,216 under Section 2(22)(e) of the Act. The assessee argued that the additions made by the Assessing Officer were without any reference to incriminating material found during the search and seizure operation conducted at the assessee's premises. The Revenue could not refute the absence of incriminating material for making such additions.
The Tribunal carefully reviewed the orders of the lower authorities and the legal contentions presented by both parties. The assessee contended that additions under Section 2(22)(e) could not be made in the assessment under Section 153A without any reference to incriminating material found during the search. Citing the judgment of the Hon'ble Apex Court in the case of Pr.CIT vs. Abhisar Buildwell (P.) Ltd., it was established that the scope of assessment under Section 153A is limited to incriminating material found during the search. Since no such material was found in the present case, the additions made by the Assessing Officer were deemed unjustified. Therefore, the Tribunal allowed the appeal of the assessee, quashing the additions made by the Assessing Officer.
The order was pronounced in open court on 19th April, 2024.
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