TaxTMI 
TaxTMI 
2023 (2) TMI 85
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....that the assessee is a Company engaged in the business of manufacturing, marketing and export of Triple Refined Free Flow Iodized and Pure Industrial Salt. For the Assessment Year 2012-13, the assessee filed its Return of Income on 17/09/2012 declaring total income of Rs. 98,81,410/-. Regular assessment was completed u/s. 143(3) dated 22/01/2015 making disallowance on account of court case fine of Rs. 3,15,000/- and disallowance of depreciation on motor car of Rs. 6,51,195/-. 2.1. There was a search operation u/s. 132 of the Act in the assessee premises on 220/09/2016 along with M.R. Shah and Champalal Group of cases. In compliance to the 153A notice, the assessee filed its Return of Income declaring income of Rs. 98,81,410/- on 15/09/2017....
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....Pr.CIT vs. Desai Construction (P.) Ltd. [2017] 81 taxmann.com 271 (Guj.), Pr.CIT vs. Saumya Consturction (P.) Ltd. [2017] 81 taxmann.com 292 (Guj.) and Pr.CIT vs. Sunrise Finlease (P.) Ltd. [2018] 89 taxmann.com 1 (Guj.). Thus the assessee claimed that the proposed addition/disallowances are unwarranted either on facts or in law. 2.3. On merits of the case, the assessee submitted the interest income from PGVCL is already accounted in its interest income and only the net interest is booked in the profit and loss account which can be cross verifiable from the Schedule 23 of the audited annual accounts. The assessee company had made interest free deposits with the said four parties for business purpose only. Since the assessee follows mercant....
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....oneous and prejudicial to the interest of the revenue. 3. The Ld. PCIT (Central), Ahmedabad erred in law in not appreciating the judicial dictum that what cannot be done directly under the law, cannot be done indirectly by taking recourse to any other section of the Act. 4. Without prejudice to above, the Ld. PCIT (Central), Ahmedabad therefore erred in law and on facts in setting aside the issues back to the file of the AO despite complete factual details submitted before him to prove that on facts also, no income really escaped assessment. 3.1. Ld. Counsel for the assessee submitted before us a Paper Book containing the submissions filed by the assessee before the Assessing Officer during the course of search assessment proceedings. ....
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....criminating material seized by the Department during the course of search. After considering the same, the Assessing Officer accepted the returned income and passed the assessment order after obtaining approval from Joint Commissioner of Income-tax under section 153D of the Act. 5.1. It is settled position of law by Hon'ble Supreme Court and Jurisdictional High Court, no addition can be made in the absence of incriminating material found during the course of search by the following judgments: (a) Pr.CIT vs. Meeta Gutgutia [2018] 96 taxmann.com 468 (SC) 1. Section 153A of the Income-tax Act, 1961 - Search and seizure (General principles) - Assessment years 2001-02 to 2003-04 and 2004-05 - High Court in impugned order held that invocatio....
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....8 - Whether where no incriminating evidence against assessee was found during course of search so as to attract provisions of section 153A proceedings, no additions could be made on basis of material collected after search - Held, yes - Whether since no incriminating evidence against assessee was found or seized during course of search so as to attract provisions of section 153A proceedings, no additions could be made on basis of statement of director of assessee company which was recorded under section 131 much later after search. 5.2. Further the Bombay High Court in the case of Murli Agro Products Ltd. (cited supra) wherein it has been held as follows: "Where there was nothing on record to suggest that any material was unearthed durin....
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....sessee before him, rightly refrained from making any addition in the hands of the assessee. The aforesaid view of the Tribunal that in case of an unabated assessment no addition in the absence of any incriminating material emerging during the course of the search and seizure proceedings conducted under section 132(1) can be made in the hands of an assessee, had been approved by the Jurisdictional High Court. Thus, in view of settled position of law, the Assessing Officer remaining within the four parameters of law having passed the assessment order under section 153A read with section 143(3), dated, 27-3-2015, the said assessment cannot be faulted with and held to be 'erroneous'. Thus, now when the assessment order passed by the Ass....