INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Addition under section 69C - No incriminating material was found during search

A search and seizure operations alongwith survey operation was conducted and statutory notices were issued and served upon the assessee. In response to the notice under section 153A, assessee filed return of income declaring NIL income. Assessment was framed under section 153A read with section 143(3) and total income was assessed after making additions under section 69C. Assessee contended that assessment order was devoid of any incriminating material found at the time of search and, therefore, the assessment was bad in law. Held: The facts on record show that assessment was framed under section 143(3) and search was conducted. Completed assessment can only be reopened in a search case when there was some incriminating material found during the course of search. Otherwise the ratio laid down in the case of Kabul Chawla [(2015) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC)] and Meeta Gutgutia [(2017) 395 ITR 526 (Del) : 2017 TaxPub(DT) 1767 (Del-HC)] squarely apply on the facts of the case in hand wherein High Court had held that completed assessment can be interfered with by AO while making assessment under section 153A only on the basis of some incriminating material unearthed during the course of search.

Followed:Pr. CIT v. Meeta Gutgutia Prop. M/s. Ferns 'N' Petals (2017) 395 ITR 526 (Del) : 2017 TaxPub(DT) 1767 (Del-HC) Pr. CIT v. Ram Avtar Verma (2017) 395 ITR 252 (Del) : 2017 TaxPub(DT) 1854 (Del-HC) CIT v. Kabul Chawla (2015) 380 ITR 573 (Del) : 2015 TaxPub(DT) 3486 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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