The Tax Publishers2021 TaxPub(DT) 4718 (Del-Trib)

INCOME TAX ACT, 1961

Section 153A

Since nothing incriminating material or unaccounted wealth was found to corroborate the contents of paper seized, therefore, no addition can be made while framing the assessment under section 153A.

Search and seizure - Assessment under section 153A - No incriminating material found during the course of search -

A search and seizure operation was carried under section 132A and accordingly, a notice under section 153A was issued. At the time of search the assessment for the assessment year 2008-09 had attained finality and accordingly in terms of second proviso to section 153A, such an assessment was to be treated as unabated and without any reference to any seized material or incriminating evidence found during the course of search.Held: Addition made by the AO was not based on incriminating material found during the course of search, albeit it is based on the assessment record only. When there is no incriminating material qua each of the assessment year roped in under section 153A, then, no addition can be made while framing the assessment under section 153A. Therefore, no addition could be made against assessee.

Relied:Pr. CIT v. Meeta Gutgutia (2017) 82 Taxmann.com 287 (Del-HC) : 2017 TaxPub(DT) 1767 (Del-HC), CIT v. Kabul Chawla (2016) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC), CIT v. Lancy Constructions (2016) 237 Taxman 728 (Karn-HC) : 2016 TaxPub(DT) 1207 (Karn-HC), Dy. CIT v. Kurele Paper Mills (P) Ltd. in ITA No. 3761/Del/2011, Pr. CIT v. Kurele Paper Mills (P) Ltd. ITA No. 369/2015 (Del-HC) : 2016 TaxPub(DT) 1068 (Del-HC), Pr. CIT v. Kurele Paper Mills (P) Ltd. (2016) 380 ITR 65 (SC) and CIT v. Saumya Construction (P) Ltd. (2016) 387 ITR 529 (Guj-HC) : 2016 TaxPub(DT) 3466 (Guj-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09



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