2023 (4) TMI 292 - AT - Income Tax

Assessment u/s 153A - incriminating material found or not? - HELD THAT - The undisputed fact is that all the assessment years are completed assessments. It is not disputed that the impugned additions are de void of any incriminating material whatsoever found during the course of search. There is no mentioning of incriminating material found at the time of search on the basis of which the addition has been made. The ratio laid down by case of Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT squarely apply on the facts of the case. Appeal of assessee allowed.

Summary

Issues involved:
The judgment involves appeals against orders of ld. CIT (Appeals) for four assessment years under section 153A of the Income-tax Act, 1961. The common grievance in all appeals is the addition made without incriminating material found during a search.

AY 2011-12 (ITA No.8721/Del/2019):
The addition of Rs.85,300/- was made based on bank statements submitted during assessment, without any incriminating material. The plea was that the addition lacked incriminating evidence and was not sustainable.

AY 2013-14 (ITA No.8722/Del/2019):
An addition of Rs.53,500/- was made for a bank deposit without incriminating material, solely based on the assessee's submission during assessment proceedings.

AY 2014-15 (ITA No.8723/Del/2019):
Additions totaling Rs.5,75,520/- were made for various deposits without incriminating material, solely based on documents submitted during assessment, not found during the search.

AY 2015-16 (ITA No.8724/Del/2019):
Additions of Rs.4,72,392/- were made for bank deposits without incriminating material, solely based on documents submitted during assessment, not found during the search.

The counsel argued that as all assessment years were completed assessments, additions should have been based on incriminating material found during the search. Citing relevant case laws, it was contended that additions without such material should be deleted.

The Tribunal found that the additions were made without incriminating material, following the legal position from the Hon'ble Delhi High Court's judgment in the case of Kabul Chawla. Similar deletions were made in the son's case. As the Revenue did not dispute the lack of incriminating material, the Tribunal set aside the lower authorities' orders and deleted the additions in all four appeals.

In conclusion, all four appeals by the assessee were allowed, and the additions were deleted based on the absence of incriminating material.