2019 (3) TMI 1977 - HC - Income Tax

Validity of assessment u/s 153A - whether ITAT is correct in law in holding that the scope of section 153A is limited to assessing only search related income thereby denying Revenue the opportunity of taxing other escaped income that comes to the notice of the AO? - HELD THAT - The issues are squarely covered by Judgment of this Court in the case of Commissioner of Income Tax v. Deepak Kumar Agarwal 2017 (9) TMI 850 - BOMBAY HIGH COURT in which it is held that assessment under section 153A of the Income Tax Act 1961 can be made only on the basis of incriminating material found during a search. No question of law arises

Summary

The Bombay High Court dismissed the Income Tax Appeal against the order of the Income Tax Appellate Tribunal. The appeal raised questions regarding the validity of the assessment order passed under section 143(3) read with section 153A of the Income Tax Act, 1961. The Court held that assessment under section 153A can only be made based on incriminating material found during a search. The appeal was dismissed as no question of law arose.