DCIT CC 3(1) CEN RG 3, MUMBAI vs. WIND WORLD WIND FARMS (INDIA) LTD, MUMBAI

PDF · subscribers
ITA 6835/MUM/2016Status: DisposedITAT Mumbai04 May 2017AY 2011-123 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) was justified in deleting the addition made under Section 14A as the assessment year was unabated and no incriminating material was found during the search. The CIT(A) correctly followed the jurisdictional High Court's decision.

What were the facts?

The assessee is engaged in electricity production via windmills. The assessment was completed under Section 153A following a search operation. The Assessing Officer made a disallowance under Section 14A, which was not based on any incriminating material found during the search.

What were the issues?

Whether an addition under Section 14A can be made in an unabated assessment year under Section 153A without any incriminating material found during a search.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 14A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)

For Appellant: Shri A.K. Ghosh
For Respondent: Shri Sunil Jha
Hearing: 4.5.2017Pronounced: 4.5.2017

The appeal of the Revenue is directed against the order passed by Ld CIT(A)-51, Mumbai and it relates to the assessment year 2011-12. The solitary issue urged by the Revenue in the year under consideration is whether the Ld CIT(A) was justified in holding that the addition made by the assessing officer is liable to be deleted as the same was not based on any incriminating material found during the course of search.

2.

The assessee is engaged in the business of production of electricity through wind mills. The present assessment was completed u/s 153A r.w.s. 143(3) of the Act consequent to search operations conducted on 14.3.2013. Hence the year under consideration would fall under the category of “unabated assessments” as per the provisions of sec. 153A of the Act. The AO made disallowance u/s 14A of the Act in this 153A assessment and there is no dispute

2 M/s. Wind World Wind Farms (India) Ltd. that the same is not based on any incriminating material found during the course of search. The Ld CIT(A) held that the above said addition made is not sustainable, as the present assessment year is unabated assessment year and further no incriminating material warranting the impugned addition was found during the course of search. The Ld CIT(A) followed the decision rendered by Hon’ble jurisdictional Bombay High Court in the case of Continental warehousing/All cargo logistics Ltd (374 ITR 645) in this regard. Accordingly the Ld CIT(A) deleted the addition made by the AO in the year under consideration. Aggrieved, the revenue has filed this appeal.

3.

I heard the parties and perused the record. There is no dispute with regard to the fact that the revenue did not unearth any incriminating material concerning the disallowance made by the AO u/s 14A of the Act in both the years. I further notice that the Ld CIT(A) has followed the binding decision rendered by the Hon’ble jurisdictional Bombay High Court. Hence I do not find any reason to interfere with his order.

4.

In the result, the appeal of the revenue is dismissed. Order has been pronounced in the Court on 4.5.2017.

More judgments on Section 153A

All 18,957 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →