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Commissioner Of Income Tax (Central) ... vs Kabul Chawla on 29 March, 2016

Before the Tribunal, the assessee raised an  additional legal contention on the validity of order  under section 153A of the Act on the ground that no  incriminating   material   was   found   during   the   search  with the aid of which the additions could have been  made.     Ignoring   the   objections   of   the   department   to  raise the additional grounds, the Tribunal permitted  the assessee to raise it on the premise that the same  was a legal contention which would go to the root of  the   matter.     The   Tribunal   thereupon  held   that   there  was no incriminating material found during the search  with   the   aid   of   which,   the   Assessing   Officer   could  have made the additions.   The Tribunal relied on the  decision of Delhi High Court in case of CIT vs Kabul   Chawla  reported in (2016)  380 ITR 573 (Delhi) and on  the   decisions   of   this   Court   in   case   of   M/s.   Desai  Construction   Pvt.   Ltd.   dated   20.07.2016   and   Saumya  Construction Pvt. Ltd. dated 14.03.2016.  The Tribunal  also was of the view that in three assessment years  involved   the   assessments   could   not   be   held   to   be  pending as per the second proviso to section 153A(1)  of   the   Act   on   the   ground   that   the  time   limit   for  Page 3 of 5 HC-NIC Page 3 of 5 Created On Sun Sep 10 05:42:40 IST 2017 O/TAXAP/469/2017 ORDER issuing notice under sub­section (2) of section 43 of  the Act has expired long before the search was carried  out.
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