The Tax Publishers2020 TaxPub(DT) 2747 (Del-Trib)

INCOME TAX ACT, 1961

Section 153A

Where revenue failed to establish that additions made in case of assessee were based on any incriminating material found in course of search under section 132, thus, addition made was not based on any incriminating material and fact that assessment was not abated, order of revenue was invalid.

Search and seizure - Validity of additions made pursuant to search action - Additions made were not based on incriminating material found during search -

Moot issue involved was as to whether addition which was a part of books of account, could be added to income under section 68 in absence of any incriminating material found during search. Especially when assessment under section 143(3) was already completed in regular course of proceedings even before date of search. Held: Revenue failed to establish that additions made in case of assessee were based on any incriminating material found in course of search under section 132, thus, addition made was not based on any incriminating material. Since, addition was not based on incriminating material and fact that assessment was not abated, these twin conditions went against order of revenue as declared by judicial pronouncement of Jurisdictional High Court in CIT Vs Kabul Chawala, and PCIT Vs Meeta Gutgutia.

Followed:Pr. CIT v. Meeta Gutgutia Prop. (2017) 395 ITR 526 (Del.-HC) : 2017 TaxPub(DT) 1767 (Del-HC) CIT v. Kabul Chawla (2015) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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