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TMI Blog2023 (7) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... tion [ 2016 (7) TMI 911 - GUJARAT HIGH COURT] laying down the law that no addition can be made in respect of completed assessment in absence of any incriminating material. The supreme court in laying down the proposition considered the object and purpose of insertion of section 153A of the Act. In view of the above decision of the supreme court in Abhisar Buildwell P. Ltd. [ 2023 (4) TMI 1056 - SUPREME COURT] there is no gainsaying that the issue sought to be raised and the substantial questions of law ought to be put forth in that context, are answered. No case is made out in this appeal. No substantial question of law could be said to be arising in view of law laid down by the supreme court in Abhisar Buildwell P. Ltd. [ 2023 (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged bogus long term capital gain. Further addition under section 69C of the Act to the tune of Rs. 2,54,130/- on account of expenses of bogus long term capital gain was also made. 3.1 The Commissioner of Income Tax (Appeals) passed order dated 2.7.2019 allowing the appeal of the assessee by deleting the additions made in the assessment order. It recorded a finding that no incriminating material was found at the premises of the assessee during search. The Income Tax Appellate Tribunal as per impugned order dated 8.6.2022 dismissed the appeal of the Revenue against the aforementioned order of Commissioner of Income Tax (Appeals). 4. While learned advocate for the appellant took the court through the order impugned in the appeal to m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nating material found during the course of search under section 132 of the Act or the requisition under section 132A and whether additions made by the Assessing Officer in absence of any incriminating material found during the search, could be sustained or not. 4.2 The supreme court confirmed the view taken by this court in Principal Commissioner of Income Tax-4 vs. Saumya Construction [(2016) 387 ITR 529 (Gujarat)] well as that of Delhi High Court in Commissioner of Income Tax, Central-III vs. Kabul Chawla [(2015) 61 taxmann.com 412 (Delhi)] , which were in favour of the assessee. The supreme court held that no addition can be made in respect of completed/ unabated assessment in absence of any incriminating material. 4.3 The supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the total income of the aforementioned six years in separate assessment orders for each of the six years. In other words, there will be only one assessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessment/unabated assssment in absence of any incriminating material will not permit making of addition by the Assessing Officer and that the Assssing Officer has no jurisdiction to reopen the completed assessment. 5. Finally, the supreme court confirmed the view taken by the Delhi High court in Kabul Chawla (supra and of this Court in Saumya Construction (supra laying down the law that no addition can be made in respect of completed assessment in absence of any incriminating material. The supreme court in laying down the proposition considered the object and purpose of insertion of section 153A of the Act. 6. In view of the above decision of the supreme court in Abhisar Buildwell P. Ltd. (supra), there is no gainsaying tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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