Pr,Commisioner Of Income Tax-1 v. Rakesh Kumar Garg

$~55 *IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA 985/2017 PR,COMMISIONER OF INCOME TAX-1..... Appellant ThroughMr. Ashok K. Manchanda, Advocate. versus RAKESH KUMAR GARG ..... Respondent ThroughNone. CORAM:HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE SANJEEV SACHDEVA O R D E R%14.11.2017 CM No.41108/2017 (exemption) Exemption is allowed subject to all just exception. ITA 985/2017 & CM Nos.41106/2017 (for condonation of delay inre-filing), 41107/2017 (for condonation of delay in filing) 1.The question sought to be urged by the Revenue, in this appealunder Section 260A of the Income Tax Act, 1961, is with respect tothe interest amount of Rs.9,51,557/-, claimed as interest expenditurefor business purposes.The assessee’s premises were searched on31.07.2008. The addition, in issue, was made in the course of searchassessment under Section 153A of the Income Tax Act, 1961. TheITAT directed the deletion of the amount on the ground that there wasno basis in the search assessment proceedings since no incriminatingmaterial or document, on that score, had been recovered or found. 2.We notice that the assessee had relied upon the judgment inCommissioner of Income Tax vs. Kabul Chawla, (2015) 380 ITR 573,where, it was held that to justify an addition in the course of searchproceedings, there has to be some incriminating material found by theauthorities during the course of search. On the application of ratio ofthe judgment in the Commissioner of Income Tax vs. Kabul Chawla,(2015) 380 ITR 57, this Court is of the opinion that no question of lawarises. 3.The appeal is, therefore, dismissed. S. RAVINDRA BHAT, J NOVEMBER 14, 2017st SANJEEV SACHDEVA, J