The Tax Publishers2020 TaxPub(DT) 3041 (Del-Trib)

INCOME TAX ACT, 1961

Section 153A

Where no incriminating material was found during search and also proceedings were non-abated, no addition under section 68 could be made in hands of assessee, while framing assessment under section 153A.

Search and seizure - Assessment under section 153A - No incriminating material unearthed during search -

Issue arose as to whether in absence of any incriminating material, could any addition under section 68, be made in hands of assessee, while framing assessment under section 153A. Held: Discovery of incriminating material vis-à-vis two stages of assessment i.e. abated and non-abated assessment, needs to be seen. It is not dictate of Kabul Chawla, that in absence of any incriminating material, in any of years, no additions can be made. So, to apply principle laid down by High Court, it is first step to find whether proceedings had abated or non-abated and also to determine any incriminating material was found or not. Assessee pointed out that no incriminating material was found and also that proceedings were non-abated, thus, in facts and circumstances, following the case of Kabul Chawla, no addition under section 68 was warranted.

Followed:CIT (Central) v. Kabul Chawla (2015) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11 & 2011-12



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