TaxTMI 
TaxTMI 
2023 (2) TMI 85
X X X X Extracts X X X X
X X X X Extracts X X X X
....012-13. 2. The brief facts of the case is 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 de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee relied upon PCIT vs. Meeta Gutgutia [2018] 96 taxmann.com 468 (SC), 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 sai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sed on any incriminating document. The Ld. PCIT therefore, erred in treating such order as erroneous 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 submi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar depreciation. Pursuant to the search action, the assessee filed the very same Return of Income, as there is no incriminating 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 a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2018] 89 taxmann.com 1 (Gujarat) Section 153A of the Income-tax Act, 1961 - Search and seizure - Assessment in case of (Condition precedent) - Assessment year 2007-08 - 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 relied upon by the assessee 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 und....