Shyam Mahabirprasad Jatia vs. Income Tax Officer

Parties Involved

Facts Summary

The case involves appeals filed by the assessee against separate orders passed by the Commissioner of Income Tax (Appeals) for the assessment years 2013-14, 2015-16, and 2016-17. The assessee contested the quantum of assessment passed under section 153A read with section 143(3) of the Income Tax Act. A search and seizure action under section 132 was carried out on 17/04/2018. The assessee filed returns for the assessment years in question, and the Assessing Officer passed assessment orders on 24/06/2021. The assessee challenged these orders, claiming that the disallowance of expenses and addition of income were made without any incriminating material found during the search. The Tribunal found that the additions made by the Assessing Officer were adhoc disallowances of expenses not supported by any incriminating material, and thus, beyond the scope of section 153A. Consequently, the Tribunal allowed the appeals of the assessee.…

Legal Issues

• 1. Whether the disallowance of expenses and addition of income by the Assessing Officer was justified under section 153A?

Judgment Outcome

Decided in favour of Assessee.

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