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Income Tax Appellate Tribunal, “SMC” Bench, Mumbai
Before: Shri B.R. Baskaran (AM)
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.
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.
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, both the appeals of the revenue are dismissed. Order has been pronounced in the Court on 4.5.2017.