INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - No incriminating material found during the course of search relating to unabated assessment year -

Assessee filed appeal against addition made in an assessment framed under section 153A in respect of unabated/concluded assessments on the date of search in the absence of any incriminating material found during the search relating to such unabated assessment year. Held: In the case of CIT v. Sinhgad Technical Education Society (2017) 397 ITR 344 (SC) : 2017 TaxPub(DT) 3941 (SC) it was held that in order to initiate a valid assessment proceeding under section 153C, the seized document must be incriminating in nature and must relate to the assessment year whose assessment is sought to be reopened. Hence, if no incriminating material is found during the course of search in respect of an assessment year, then AO does not have any jurisdiction to invoke the provisions of section 153C. Thus, it can be safely concluded that no addition/disallowance could be validly made in the assessments framed under section 153A in respect of concluded assessments on the date of search, unless any incriminating materials were found during the course of search relatable to such assessment year, enabling AO to disturb the earlier stand taken by him in either in the intimation under section 143(1) or in the scrutiny assessment under section 143(3), as the case may be.

Followed:CIT v. Sinhgad Technical Education Society (2017) 397 ITR 344 (SC) : 2017 TaxPub(DT) 3941 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2011-12 to 2017-18

INCOME TAX ACT, 1961

Section 14A

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