IT: HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's office

IT: HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's office

 [2015] 63 taxmann.com 137 (Delhi)

HIGH COURT OF DELHI

Commissioner of Income-tax (C)-I

v.

MGF Automobiles Ltd.*

Section 153A of the Income-tax Act, 1961 - Search and seizure - Assessment in case of (Conditions precedent) - Assessment years 2004-05 and 2005-06 - Pursuant to High Courts

order company CML was amalgamated with assessee company from 1-4-2003 - In returns of income, assessee set off losses of company CML against its income - Thereafter a search took place in assessee's premises and certain incriminating material was seized, which was stated to be destroyed in a fire took place at premises of revenue - Consequent to search, Assessing Officer framed assessments disallowing set off of losses of company CML and made additions - Whether since Assessing Officer proceeded to frame assessments under section 153A relying on some information not unearthed during search, assessment orders so passed were not sustainable in law - Held, yes [Paras 12, 13 and 15] [In favour of assessee]