This article provides a comprehensive review of the Income Tax Appellate Tribunal’s decision in the case of Harvansh Chawla vs. ACIT, Central Circle-5, New Delhi, pertaining to the assessment year 2012-13. The tribunal’s decision focuses on the disallowances made by the ACIT and their subsequent appeal.
The matter emerged from disallowances including depreciation and interest expenses made during assessments following a search and seizure operation in 2016. The tribunal considered the application of existing legal principles and the specifics of the search-related findings.
The tribunal applied principles established by the High Court of Delhi, particularly emphasizing that any disallowances or additions in assessments conducted under section 153A must be directly linked to incriminating materials uncovered during the search. Citing cases like Kabul Chawla and Meeta Gutgutia, the tribunal concluded that the disallowances in question lacked such direct linkage and thus were not sustainable.
The decision to delete the additions made by the assessing officer sets a significant precedent on the requirements for evidentiary support in tax assessments post-search operations. This analysis explores the broader implications of this ruling for taxpayers and tax professionals dealing with similar circumstances.
Harvansh Chawla vs. ACIT, Central Circle-5: Tribunal’s Decision on Disallowances for A.Y. 2012-13
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