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2022 (7) TMI 1358 - HC - Income TaxAssessment u/s 153A and 153C - ‘incriminating’ material - ITAT, upon appreciation of the documents on record, concluded that the documents referred to by the AO as ‘incriminating’ were admittedly not found from the address of the assessee - HELD THAT:- ITAT, concluded that since no assessment was pending for the relevant assessment year 2010-11 on the date of search and no incriminating material was found during the course of search, the issue is covered in favour of the assessee by the judgment in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] and Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT] as well M/s Kapis Impex LLP [2020 (7) TMI 44 - ITAT DELHI] Predecessor Division Bench of this Court in Kabul Chawla (supra) has held that if no incriminating material is found during the course of the search in respect of an issue, then no addition in respect of such an issue can be made in the assessment under Sections 153A and 153C of the Act. Though the judgment in Kabul Chawla (supra) has been challenged in connected matters and is pending before the Supreme Court, yet there is no stay of the said judgment till date. Accordingly, this Court finds no ground not to follow the said judgment. Keeping in view the aforesaid, this Court is of the opinion that the question of law raised in present appeal has been settled by earlier Division Bench in Kabul Chawla (supra) and no incriminating documents or materials had been found and seized at the time of search. - Decided in favour of assessee.
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