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

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ITA 6839/MUM/2016Status: DisposedITAT Mumbai05 May 2017AY 2010-113 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 Tribunal held that the additions made by the AO under Section 14A were not sustainable as they were not based on any incriminating material found during the search. The CIT(A)'s decision to delete these additions, following the jurisdictional High Court's precedent, was upheld.

What were the facts?

The Revenue appealed against the deletion of additions made by the Assessing Officer (AO) under Section 14A for assessment years 2010-11 and 2011-12. These assessments were completed under Section 153A following a search operation.

What were the issues?

Whether additions made under Section 14A in unabated assessment years under Section 153A are valid without incriminating material found during search.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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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

Heard together (2 matters)

I.T.A. No. 6839/Mum/2016
I.T.A. No. 6827/Mum/2016

Read from the judgment's own cause title. This page is filed under one of them.

Both the appeals have been filed by the Revenue challenging the orders passed by Ld CIT(A)-51, Mumbai and they relate to the assessment year 2010- 11 & 2011-12. The solitary issue urged by the Revenue in both the years 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 assessments were completed u/s 153A r.w.s. 143(3) of the Act consequent to search operations conducted on 14.3.2013. Hence both the years 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 2 M/s. Wind World Wind Farms (Karnataka) Ltd.

Act in these 153A assessments and there is no dispute 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 in both the years is not sustainable, as the present assessment years are unabated assessment years and no incriminating material warranting the impugned additions 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 additions made by the AO in both the years under consideration. Aggrieved, the revenue has filed these appeals.

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, both the appeals of the revenue are dismissed. Order has been pronounced in the Court on 4.5.2017.

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