2018 (2) TMI 2064 - HC - Income Tax

Assessment u/s 153A - addition made under Section 41 (1) of the Act as also in respect of unaccounted purchase and sale - whether addition cannot be made if no incriminating material is found? - ITAT deleted the addition - HELD THAT - The Tribunal, while confirming the view of CIT Appeals relied on judgment of Saumya Construction Private Limited, 2016 (7) TMI 911 - GUJARAT HIGH COURT held that since the Assessing Officer had sought to make additions and disallowances independent of the incriminating material found during search, the same was not permissible. The view of the Tribunal is well supported by decision of this Court in Saumya Construction Private Limited Supra . Tax appeal dismissed.

Summary

The Gujarat High Court dismissed the Tax Appeal, upholding the Tribunal's decision that additions cannot be made in an assessment under Section 153A of the Act if no incriminating material is found. The Tribunal's decision was supported by the court's judgment in the case of Principal Commissioner of Income Tax v. Saumya Construction Private Limited.