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2020 (3) TMI 1257 - AT - Income TaxAssessment u/s 153A - As per assessee no undisclosed income being unearthed during such search - absence of any addition on the basis of incriminating material having been found in course of search - HELD THAT:- No merit in objection raised by the assessee that in the absence of any incriminating material having been found in course of search, section 153A cannot be invoked because we feel that the condition precedent for invocation of Section 153A is this that there should be a search under Section 132 and initiation of proceedings under Section 153A is not dependent on any undisclosed income being unearthed during such search. This objection is rejected. Absence of any addition on the basis of incriminating material having been found in course of search - As u/s 153A, the AO can reopen and/or assess the return with respect to six preceding years but there must be some incriminating material available with the AO in respect of the relevant year in which addition is being made. In the present case, no such incriminating material leading to undisclosed income was seized because in none of the assessment order, any addition is made by the AO on the basis of any seized material. Judgment in the case of PCIT vs. Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT]duly approved by Hon’ble apex court should be followed [2018 (7) TMI 569 - SC ORDER] None of various additions in these five years has any connection with any incriminating material found in course of search and even if these incomes escaped assessment, action could have been taken u/s 147 or 263 as per law but in the absence of any incriminating material having been found in course of search for any year out of relevant six years, addition u/s 153A is not justified and we delete the same. - Decided in favour of assessee.
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