TaxTMI 
TaxTMI 
2023 (5) TMI 955
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....in -after referred to as "the Act") relevant to the Assessment Year 2008-2009. 2. The only effective issue raised by the Revenue is that the learned CIT(A) erred in deleting the addition of Rs. 15 crores made under section 68 of the Act on account of unexplained credit of share application money and premium by holding that no assessment can be made in absence of incriminating materials. 3. The facts in brief are that the assessee in the present case is a private limited company and engaged in the business of Ship Breaking. There was a search and seizure operation under section 132 of the Act dated 17-02-2012 carried out at ship breaking group of Bhavnagar. The assessee was also part of such search proceeding. Consequence to the impugned s....
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....in case of search or requisition, it goes without saying that the assessment has to have relation to the search or requisition. Thus, while in view of the mandate of sub-section (1) of section 153A in every case where there is a search or requisition, the Assessing Officer is obliged to issue notice to such person to furnish returns of income for the six years preceding the assessment year relevant to the previous year in which the search is conducted or requisition is made, any addition or disallowance can be made only on the basis of material collected during the search or requisition, In case no, incriminating material is found, the earlier assessment would have to be reiterated. 4.7 The above decisions have categorically dealt with b....
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....have shown meager income and made huge share applications to appellant. The AO has there referred to investigation inquiries conducted by ADIT, Kolkata and statement of directors were taken by them. The AO in such show cause notice has discussed contents of such statements, finding of AO in assessment order passed u/s 143(3) of the Act for A.Y. 2009-10 making similar additions u/s 68 of the Act, post search inquiries etc. It is observed that even in show cause notice issued to appellant there was no reference to any incriminating material found during the course of search which can prove that addition u/s68 of the Act was based upon such intimating material. Even in assessment order, there is no whisper regarding such material found during ....
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....was to realign the income from capital gain to business income. Since this was without the aid of any material unearthed during the search, the Tribunal reversed the assessment order as confirmed by the Commissioner of Income Tax (Appeals). 3. As per the settled law, the approach before the Tribunal cannot be faulted particularly when the Revenue is unable to dispute the factual findings of the Tribunal. We notice that there are additional questions raised by the Revenue which pertained to the actual additions. However, when we hold the main issue against the Revenue, it is not necessary to enter into the subsidiary questions." Similar view has also been taken by Hon'ble Gujarat High Court in the case of PCIT V/s Sunrise Finlease ....
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....ing material only. The ld. DR vehemently supported the order of the AO. 9. On the other hand, the learned AR vehemently supported the order of the ld. CIT-A. 10. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, there was search action under section 132 of the Act dated 17th February2012 carried out on the assessee and its group concern "Ship Breakers Group of Bhavnagar" and in consequence to the same proceeding under section 153A of the Act was initiated in case of respondent assessee for year under consideration. The assessment under section 153A r.w.s section 143(3) of the Act for the year under consideration i.e. A.Y. 2008-09 was framed after making additions on account ....
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.... nature found during the course of search. The word incriminating has not been defined under the Act, but it refers to those materials/ documents/ information which were collected during the search proceedings and not produced in the original assessment proceeding. Simultaneously, these documents had bearing on the total income of the assessee. Now coming to the case on hand, we note that addition was made based on the statement of director of investing companies recorded in an independent proceedings under section 132/133A/131(1) of the Act and the finding of inquiry or investigation was carried in case of investing companies without referring to incriminating document found from the premises of the assessee in this regard which would have....