INCOME TAX ACT, 1961

Section 153A

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

AO, pursuant to search conducted at assessee's premises, framed assessment under section 153A and made addition of Rs. 1,65,00,000 on account of unexplained share capital and share application money in the hands of the assessee under section 68. Assessee challenged this on the ground of no incriminating material found during search. Held: AO, in the instant case, on the basis of pre-search enquiries, search and post-search inquiries conducted and statement recorded of various persons under section 132(4) and section 131 made addition while framing search assessment. Pre and post search inquiry and the statement recorded under section 132(4) could not constitute incriminating material found during search. As regular assessment for the year under consideration remained unabated as on date of search, therefore, same could not be interfered with while framing section 153A assessment in the absence of incriminating material unearthed during search.

Applied:Moon Beverages Ltd. v. Asstt. CIT ITA Nos. 115 to 118/Del/2018 and CO Nos. 73 to 76/Del/2018 : 2020 TaxPub(DT) 5251 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

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