INCOME TAX ACT, 11961

Section 153A

Search and seizure - Assessment under section 153A - Bank interest income not disclosed in return no incriminating material found during search -

Assessee in return filed in response to notice under section 153A did not disclose bank interest income which was part of credit side of the bank accounts maintained in two banks by assessee. Assessee challenged this on the ground of no incriminating material found during search. Held: As per para 37 of Kabul Chawla (2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC) : 2015 TaxPub(DT0 3486 (Del-HC), completed assessments can be interfered with by AO while making assessment under section 153A only on the basis of some incriminating material unearthed during search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. In the instant case, assessee could not substantiate credits in bank accounts with any supporting evidence, enabling AO to bring the same to tax considering income declared by assessee in the previous year. The case of assessee clearly fell within the ambit of 'undisclosed income' and therefore, contention of assessee that there was no incriminating material found during search was beyond acceptance.

Relied:Kabul Chawla (2016) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2010-11 to 2014-15

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