2025 (5) TMI 886

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....the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 31.07.2019 by the Assessing Officer, ACIT, Central Circle-28, New Delhi (hereinafter referred to as 'ld. AO'). 2. The only effective issue argued by the Ld AR before us was challenging the action of the Learned CITA in confirming the addition of Rs 3,00,000/- made on account of director's remuneration on the basis of seized document A-1, RS-1 Pages 62-63 treating the same as bogus expenditure. 3. We have heard the rival submissions and perused the materials available on record. The return of income for the assessment year 13-14 was filed under section 139(1) of the Act by the assessee on 11-01-2014 declaring total income of Rs 3,51,11,952/-. The Assessee company is ....

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....nt Commission, the assessment proceedings commenced and notice under section 142(1) of the Act dated 26-09-2019 along with general and specific questionnaire stood issued to the Assessee. The Learned AO confronted the Assessee to the seized document of Annexure A-1 at pages 62 and 63 which revealed that Smt Reena Goel was deriving director's remuneration amounting to Rs. 3 lakhs from the Assessee company. During the course of search itself, statement under section 132(4) of the Act was recorded from Smt Reena Goel on 15-10-2013. In response to question numbers 12 and 17 in her statement, Smt Reena Goel expressed her unawareness in respect of having any role and responsibilities as Director in Assessee company as well as receipt of salar....

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....) of the Act from Smt Reena Goel. 5. Admittedly, the year under consideration is an abated assessment as on the date of search. Hence, there is no need for existence of any incriminating material found during the course of search in order to determine the total income of the Assessee in the search assessment under section 153A of the Act. This argument has been rightly dismissed by the Learned CITA. It is a fact that a sum of Rs 3 lakhs has been shown to have been paid as director's remuneration to Smt Reena Goel and reflected in the books of accounts of the Assessee. But it is also a fact that during the course of search on 15-10-2013, Smt Reenu Goel was subjected to examination and a statement was recorded under section 132(4) of t....