DY. CIT, CENTRAL CIRCLE-2(2), NAGPUR vs. M/S. SIDHESHWAR COAL CORPORATION, INDORE (M.P.)

This is an appeal filed by the Revenue directed against the order of ld. Commissioner of Income Tax (Appeals)- 3, Nagpur [‘the CIT(A)’] dated 30.01.2017 for the assessment year 2010-11.

Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of trading in coal. The Return of Income for the assessment year 2010-11 was filed on 29.09.2010 declaring total income of Rs.41,340/-. Subsequently, the search and seizure operations u/s 132 of the Income Tax Act, 1961 (‘the Act’) were conducted in the residential and business 16.03.2011. It is stated that during the course of search and seizure operations, certain incriminating material was found and impounded in the business premises of the assessee. Based on such impounded material, several additions were made. Accordingly, the assessment was completed by the Assistant Commissioner of Income Tax, Central Circle-1(2), Nagpur (‘the Assessing Officer’) vide order dated 18.03.2013 passed u/s 143(3) r.w.s. 153C of the Act at a total income of Rs.4,97,78,990/-. 3. Being aggrieved by the above disallowances, an appeal was filed before the ld. CIT(A), who vide impugned order deleted the additions made by the Assessing Officer by holding that in the absence of any incriminating material found as result of search and seizure operations, no additions can be made placing reliance on plethora of decisions. 4. Being aggrieved, the Revenue is in appeal before us in the present appeal. 5. It is contended before us that the ld. CIT(A) ought not to have held that in the absence of any incriminating material found as result of search and seizure operations, no addition can be made without appreciating that in the case of abated assessment, the existence of incriminating material is not sine qua non.