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| The Tax Publishers2020 TaxPub(DT) 2685 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
Since no incriminating documents/material were found in the case of assessee during the search proceedings for making the assessment in this case under section 153A and as decided in CIT v. Kabul Chawla 2015 TaxPub(DT) 3486 (Del-HC) : (2015) 380 ITR 573 (Del) Completed assessments can be interfered with by AO while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search, therefore addition made by AO was not sustainable.
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Search and seizure - Assessment under section 153A - No incriminating material was found during search -
A search and seizure and survey operation under section 132/133A was conducted and notice under section 153A was issued. During the course of search operation various incriminating documents were found and seized which indicates M/s. K and its group received bogus capital and share premium from nondescript companies. Assessee company was one of the company of M/s. K. During the year assessee acquired many shares. AO issued show cause notice as to why addition should not be made on account of unexplained investment under section 69B. Assessee explained that notice was vague, non-specific and in violation of principles of natural justice. AO did not accept the explanation of assessee and made addition on account of unexplained investment under section 69B. Held: It was not in dispute that original return of income was filed by assessee for the assessment year under appeal on 28-9-2011. The search was conducted in the case of assessee on 8-7-2015 and on the date of search, assessment under appeal was completed as the time period to issue notice under section 143(2) for this year was also expired. It was apparent from the record that no incriminating material were found in the case of assessee during the search proceedings for making the assessment in this case under section 153A. No incriminating material was produced so as to indicate any infirmity in the Order of CIT(A) for deleting the addition. As decided in CIT v. Kabul Chawla 2015 TaxPub(DT) 3486 (Del-HC) : (2015) 380 ITR 573 (Del). Completed assessments can be interfered with by AO while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search.
Followed:Pr. CIT v. Meeta Gutgutia Prop. M/s. Ferns 'N' Petals (2017) 395 ITR 526 (Del) : 2017 TaxPub(DT) 1767 (Del-HC) Dayawanti Through Sunita Gupta (Legal Heir) v. CIT (2017) 390 ITR 0496 (Del) : 2016 TaxPub(DT) 4888 (Del-HC) CIT v. Kabul Chawla (2015) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
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