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TMI Blog2025 (1) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial found during search. In this view of the matter, we find that CIT(A) has passed a well reasoned order, as supported by the decision of Abhisar Buildwell Pvt. Ltd [ 2023 (4) TMI 1056 - SUPREME COURT] wherein as expounded that no addition can be made when the assessment framed u/s. 153A dehors incriminating material found during the search. Decided in favour of assessee. - Shri Shamim Yahya, Accountant Member And Shri Yogesh Kumar Us, Judicial Member For the Department : Shri Dayainder Singh Sidhu, CIT(DR) For the Assessee : C A, Parveen Kumar CA Anil Kumar Chopra. ORDER PER SHAMIM YAHYA, AM : This appeal filed by the Revenue is directed against the order dated 19.4.2022 of the Ld. CIT(A)-29, New Delhi relating to assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right in limiting the scope of section 153A of the Act only to undisclosed income when as per the section the AO has to assess the total income of the six assessment years.? 5. That the order of the CIT(A) is perverse, erroneous and is not tenable on facts and in law. 2. The brief facts of the case are that assessee filed its original return on 28.11.2014 declaring income of Rs. 2,32,80,220/-. In the case, the regular assessment was completed on 27/10/2016. The search on the assessee group was conducted on 15/01/2020. No proceedings u/s 143(3) or u/s 148 were pending on the date of search. Thus, this is a case of unabated assessment. Search and seizure operation was conducted on M/s Kamla Pasand group of cases under section 132 of the I. T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Shri Soumen Sen in connection with the above survey have also been relied upon by the AO in the assessment order. Accordingly the AO issued show-cause to the assessee on on 11.09.2021. The assessee replied to the show cause the AO vide his submission dated 17.09.2021.The show cause and the reply are part of the assessment order as reproduced above. The AO has mentioned that the assessee requested for complete statement of Shri Anil Kedia and Sh Soumen Sen which were provided to the asses The AO has mentioned that the scrip M/s Nikki Global Finance Lim whose shares the assessee has purchased was managed by Sh Anil Kedia an entry operator whose statement was recorded on oath u/s 131(1) of Income Tax Act, 1961 by Directorate of Investigatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the course of search. The assessment order does not refer to any seized material or any incriminating material found during the course of search regarding the additions made. In the assessment order it has been mentioned that, on the basis of the details filed by the assessee during the assessment proceedings, the AO issued a show cause to the assessment about the LTCG of Rs. 6,74,19,148/- on account of sale of shares of M/s Nikki Global Finance Ltd. during the year. Further, in the assessment order there is a mention of the Survey conducted by the Investigation Wing of the Department on 15.06.2015 on M/s Excel Stock Broking Pvt. Ltd from whom the information of the said LTCG came to knowledge. It may be noted that the search on the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of the law explained in the aforementioned decisions, the legal position that emerges is as under: ... vii Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 8.5.1 Following the above decision, the Hon'ble Jurisdictional High Court in the case of CIT vs. Meeta Gutgutia reported in 395 ITR 526 has taken a similar view that once the assessment has attained finality for a particular year i.e. it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is not based on any incriminating material and rather it is based on 3rd party investigation report. Ld. DR could not controvert the findings of the Ld. CIT(A) that addition is not based on any incriminating material found during the course of search. 4.1 Upon careful consideration and after perusing the relevant records, we find that Ld. CIT(A) has passed a correct order wherein, it is abundantly clear that assessment u/s. 153A of the Act and in case of 153A of the Act assessment addition has to be made on the basis of incriminating material found during search. But in this case, Ld. CIT(A) has clearly brought out that addition was not done on the basis of any incriminating material found during search. In this view of the matter, we f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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