2025 (9) TMI 281

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..... ITA No. 388/CTK/2024 for A.Y. 2009-10 02. The only issue raised by the Revenue is against the order of the ld. CIT (A) deleting the addition of Rs.4,35,25,000/- as unexplained cash credit u/s 68 of the Act and of Rs.11,76,896/- by way of disallowance u/s 40a(i)(a) of the Income-tax Act, 1961 (the Act) read with section 194J of the Act by applying the decision of Hon'ble Apex Court in the case of PCIT v. Abhisar Buildwell P. Ltd. (2023)454 ITR 212(SC). 03. The facts in brief are that the assessee filed the return of income u/s 139(1) of the Act on 30.09.2009 declaring total loss of Rs.1,88,93,962/-. A search u/s 132 of the Income-tax Act, 1961 (the Act) was conducted by the Investigation wing in the case of assessee and his gr....

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....identity and creditworthiness and genuineness of the transactions. Again, there was no compliance on the part of the assessee. Finally, the ld. AO treated the said share capital/share premium as unexplained cash credit u/s 68 of the Act and made an addition of Rs.4,35,25,000/- to the income of the assessee. Besides, the ld. AO made another addition of Rs.11,96,896/- u/s 40a(i)(a) read with section 195J of the Acton the basis of audited statement of accounts furnished by the assessee. The ld. AO observed that the assessee has incurred consultancy charges on various dates when no TDS was deducted at source and no bills and vouchers were produced before the ld. AO despite several opportunities to the assessee. The ld. AO also found from the pe....

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....asis of financial statements and bank statements collected during post-search proceedings. It is further seen that such material cannot be considered incriminating. On the basis of the above, it is held that jurisdiction u/s 153A to assessee this case was not available to the Assessing Officer. The assessment order is therefore, quashed." 05. After hearing the rival contentions and perusing the materials available on record, we find that undisputedly the assessment involved in the instant case is unabated assessment year on the date of the search. The search in this case was conducted on 24th and 25th September, 2015. We note that on the date of search there was no pending assessment proceeding against the assessee nor the time limit for....