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

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.

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.

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.

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

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