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2017 (8) TMI 958 - DELHI HIGH COURTAdditions made in the course of proceedings under Section 153A/143(3) - reopening of assessment - Held that:- The decision in Commissioner of Income Tax v. Kabul Chawla (2015 (9) TMI 80 - DELHI HIGH COURT) is still good law. That decision explicitly holds that there has to be incriminating material to justify the assumption to jurisdiction under Section 153A of the Act qua each of the AYs for which assessment is sought to be reopened. The categorical factual findings by the ITAT, which have not been shown by the Revenue to be perverse, are inter alia that the material seized does not show inflation of the profit of the eligible undertakings; or that the eligible undertakings are not carrying out manufacturing activities or that the material transferred to the eligible undertakings is less than the market value and that "none of the material relates to the purchases from sister concerns." All of this is de hors the fact that the material pertains only to FY 2010-11. If, even for FY 2010-11, what was seized did not constitute incriminating material, then the essential jurisdictional fact for justifying the assumption of jurisdiction under Section 153A of the Act did not exist. In the present case there was no incriminating material seized qua each of the AYs the assessments for which were sought to be reopened. - Decided in favour of assessee.
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