INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - No incriminating material was found by AO -

A search and seizure operation under section 132 was conducted by Investigation Wing of Department at business premises of assessee and notice under section 153A was issued. Certain incriminating documents pertained to assessee were found and seized which showed that assessee had some undisclosed income as advances received from a firm and identity of creditor was not proved by assessee. Held: On perusal of record, it was observed that there was no incriminating material found during the course of search in respect to addition made on account of advances received by assessee from a firm as undisclosed income. Section 132 was resorted requiring AO to record the necessary satisfaction, was lacking in this case. Since in absence of any material termed as incriminating having no addition could be made under section 153A.

Followed:Commissioner -- III v. M/s. Calcutta Knitwears, Ludhiana (2014) 362 ITR 673 (SC) : 2014 TaxPub(DT) 1547 (SC) Pr. CIT Surat 2 v. Jitendra H Modi HUF in (I.T.A. No. 6170/Mum/2016, dt. 5-10-2018) : 2018 TaxPub(DT) 6772 (Mum-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2002-03 to 2004-05

INCOME TAX ACT, 1961

Section 271(1)(c)

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