AO is not permitted to make the addition u/s 153A without having seized material.

Last updated: 20 January 2021
Quick Summary
This Income Tax Appellate Tribunal ruling clarifies that tax authorities (AO) cannot make additions to an assessment under Section 153A if no material was seized during the assessment process. The appeals filed by the revenue were heard and admitted, but the core issue revolves around the necessity of seized evidence for tax additions.

Court :
ITAT Visakhapatnam

Brief :
These appeals are filed by the revenue against the orders of the Commissioner of Income Tax (Appeals)-3, Visakhapatnam in Appeal No.312 & 313/2019-20/CIT(A)-3/VSP/2020-21 dated 27.07.2020 for the Assessment Years (A.Y.) 2011-12 & 2012-13, Appeal No.305 to 308/2019-20/CIT(A)-3/VSP/2020-21 dated 27.07.2020 for the A.Ys 2013-14 to2016-17. The appeals are filed with the delay of 3 days along withcondonation petition stating administrative reasons and requested to condone the delay. We have heard both the parties and condone the delay and admit the appeals of the revenue.

Citation :
ITA 207/VIZ/2020

IN THE INCOME TAX APPELLATE TRIBUNAL,
VISAKHAPATNAM BENCH, VISAKHAPATNAM
(through web-based video conferencing platform)

SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER
I.T.A.No.202/Viz/2020 to 207/Viz/2020
Assessment Year:2011-12 to 2016-17)

Dy.Commissioner of
Income Tax
Central Circle-1
Guntur
Appellant)

Vs.

Sri Arunachalam Manickavel
Prop : M/s Bharathi Soap Works
11/25, Amaravathi Road
Gorantla, Guntur
[PAN :ACFPA3107K]
Respondent)

Appellant by : Shri D.K.Sonowal, CIT DR
Respondent by :Shri M.V.Prasad, AR.

Date of Hearing :25.11.2020
Date of Pronouncement :23.12.2020

O R D E R

Per Bench :

These appeals are filed by the revenue against the orders of the Commissioner of Income Tax (Appeals)-3, Visakhapatnam in Appeal No.312 & 313/2019-20/CIT(A)-3/VSP/2020-21 dated 27.07.2020 for the Assessment Years (A.Y.) 2011-12 & 2012-13, Appeal No.305 to 308/2019-20/CIT(A)-3/VSP/2020-21 dated 27.07.2020 for the A.Ys 2013-14 to2016-17. The appeals are filed with the delay of 3 days along withcondonation petition stating administrative reasons and requested to condone the delay. We have heard both the parties and condone the delay and admit the appeals of the revenue.

2. The Revenue has raised the following grounds which are common for all the assessment years.

To know more in details find the attachment file
 

FAQ :

No, according to this ruling, the AO is not permitted to make additions under Section 153A of the Income Tax Act without having seized material.

Section 153A of the Income Tax Act generally deals with the assessment in case of search or requisition.

The appeals were filed by the Dy. Commissioner of Income Tax, Central Circle-1, Guntur (the revenue).

The appeals were admitted after condoning a delay of 3 days, and the core issue regarding additions without seized material was to be addressed.

 
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