The Appellate Tribunal addressed issues related to assessment ...

The Tribunal emphasized the need for incriminating material for additions in search assessments. Ruled against addition for bogus purchases.

Case Laws     Income Tax

June 29, 2024

The Appellate Tribunal addressed issues related to assessment u/ss 153A and 153C, emphasizing the necessity of incriminating material for additions. Following legal precedents, the Tribunal held that in the absence of such material, additions made by the Assessing Officer in an unabated assessment must be quashed. Additionally, the Tribunal ruled against an addition u/s 69C for bogus purchases, noting the capital nature of the expenditure and the purchases' relevance to a different financial year. It further clarified that sections 68 and 69C were inapplicable as the case pertained to expenditure, not unexplained credits. The Tribunal criticized the CIT(A) for broadening the charge without providing the assessee an opportunity to respond, leading to the allowance of the assessee's appeal.

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