Principal Commissioner Of Income Tax - 4 v. West Wing Infrastructure Pvt Ltd

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 102 of 2018 With R/TAX APPEAL No. 103 of 2018 ============================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 4 Versus WEST WING INFRASTRUCTURE PVT LTD. ============================================================== Appearance : Mr. M R BHATT, Sr Advocate with Mrs MAUNA M BHATT for the Appellant ============================================================== CORAM:HONOURABLE Mr. JUSTICE AKIL KURESHIandand HONOURABLE Mr. JUSTICE B.N. KARIA 27[th] February 2018 ORAL ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad dated 30[th] September 2017 raising the following questions for our consideration : [A] “Whether the Appellate Tribunal is correct in law and on facts in upholding the decision of CIT [A] in deleting the addition of Rs. 10,89,39,900/= made on account of On- money ?” [B] “Whether the Appellate Tribunal is correct in law and on facts in quashing the assessment proceedings under Section 153A of the Act ?” Issue pertains to deletion of Rs. 10.89 Crores [rounded off] madeby the Assessing Officer pursuant to search carried out in case of therespondent-assessee. CIT [A] noted the assessee’s contention that theadditions are not made on the basis of any incriminating materialfound during the search and that therefore, no additions could bemade. CIT [A], however, proceeded to process the evidence taken intoaccount by the Assessing Officer and held on merits that the additionswere not justified. In other words, CIT [A] did not accept assessee’slegal contentions. This order of CIT [A] gave rise to two appeals.Revenue was aggrieved by the action of CIT [A] in allowing theassessee’s appeal. Assessee filed cross objection in view of the fact thatCIT [A] had not accepted assessee’s legal contentions. The Tribunal, bythe impugned judgment disposed of both the appeals upon which theRevenue has filed the present Appeals. Having heard learned counsel for the Revenue, we noticed thatthe Tribunal has relied on the judgment of this Court in case ofPrincipal Commissioner of Income-tax vs. Saumya Construction Pvt.Limited, reported in [2016] 387 ITR 529 [Guj.] holding that when noincriminating material is available in the search with the aid of whichadditions can be made, the additions made by the Assessing officer were not justified. In view of the settled legal position by virtue of the judgment ofthis Court, Tax Appeals are dismissed. Sd/-[Akil Kureshi, J.] Sd/= [B.N Karia, J.] Prakash