INCOME TAX ACT, 1961

Section 153A

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

Revenue filed appeal against the order of CIT(A) deleting the addition made under section 153A on the ground that as no incriminating documents/assets were found during the search without appreciating that the provision of section 153A does not stipulates any such conditionality.Held It is settled principle of law that when no incriminating material has come on record, very initiation of assessment proceedings under section 153A is not sustainable in the eyes of law. Revenue had failed to rebut the issue decided CIT(A) holding that in the absence of any incriminating material, assumption of jurisdiction under section 153A is bad in law. In case of CIT v. Kabul Chawla (2015) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC), it was also held that, 'completed assessment can be interfered by the AO while making assessment under section 153A only on the basis of some 'Incriminating Material' unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search, which were not there in the course of original assessment”. So, when there was no incriminating material unearthed during the search and seizure operation, CIT(A) had legally and validly deleted the additions.

Followed: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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