Additions Under Section 153A Search Assessment Invalid Without Incriminating Material Found During Search Operations

ITAT ruled against additions made under section 153A for unsecured loans (s.68) and interest expense disallowance (s.37(1)) in a concluded assessment year. Following SC precedent in Abhisar Buildwell and Delhi HC in Pavitra Realcon, the Tribunal held that absent incriminating material discovered during search under s.132, AO lacks jurisdiction to reassess completed assessments. A statement under s.132(4) alone, without corroborating search evidence, is insufficient basis for assessment. Since the year in question was an unabated assessment with no incriminating evidence found during search, the additions were invalidated and ruled in assessee's favor. .....

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