INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - No incriminating material seized -

The preliminary issue to be decided in this appeal was as to whether in respect of unabated assessments (no pending proceedings) as on the date of search, the AO could frame the search assessment under section 153A by making additions without any incriminating materials found during the course of search. AR argued in respect of assessment year under consideration being unabated assessment, the AO had made the addition, for which absolutely no incriminating materials were found during the coruse of the search. Hence he prayed for deletion of addition made for assessment year undr consideration.Held: The scheme of the Act provides for abatement of pending proceedings as on date of search. It is not in dispute that the assessment year under consideration falls under the ambit of unabated assessment as on the date of search. There is no differentiation as found in the intent of the legislature to diffrentiate whether the assessments were originally framed under section 143(1) or 143(3) or 147. In respect of unabated assessments the legislature has conferred powers on the AO to just follow the assessments already concluded unless incriminating materials are found in the course of search. The impugned addition for the Assessment year under consideration which was unabated/concluded assessment as on date of search cannot be made in the search assessments in the absence of any incriminating material found in the course of search and accordingly the impugned addition was directed to be deleted.

Followed:CIT v. Continental Warehousing Corporation (Nahava Shiva) Ltd. & Ors. 374 ITR 645 (Bom); Pr. CIT v. Samya Construction 387 ITR 529 (Guj) and CIT v. Gurinder Singh Bawa (2017) 79 taxmann.com 398 (Bom-HC) : 2016 TaxPub(DT) 3900 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 153A

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