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2020 (7) TMI 64 - AT - Income TaxAssessment u/s 153A - Whether any incriminating material was found with regard to the addition made ? - HELD THAT:- Once a search takes place u/s 132 of the Act, the assessee is obliged to file returns for the six assessment years immediately proceeding the previous year relevant to the assessment year in which the search took place. In so far as the completed assessment as on the date of the search are concerned, the same are to be repeated as increased by additions, only if, based on incriminating material found during the course of search. If no incriminating material is found during the course of search, then, the amount of total income determined under the earlier completed assessments is to be adopted in a fresh assessments u/s 153A without making any further addition. Juxtaposing these principles to the facts of the instant case, we find that the case of the assessee doesn’ t fall under the category of abated assessment. It falls under the category of completed assessments. In the completed assessment, it is an admitted position that if no incriminating material was found during the search, no addition is called for. In the instant case too, no incriminating material was found with regard to the addition made by the Assessing Officer. DR failed to establish that the additions made in the case of the assessee were based on any incriminating material found in the course of search u/ s 132 of the Act. On perusal of the assessment order and on examination of the order of the ld. CIT (A), we find that the addition made is not based on any incriminating material. Since, the addition was not based on incriminating material and the fact that assessment has not been abated, these twin conditions go against the order of the revenue as declared by the judicial pronouncement of the Hon’ ble Jurisdictional High Court in the case of CIT Vs Kabul Chawala [2015 (9) TMI 80 - DELHI HIGH COUR] and PCIT Vs Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT]. Hence the addition is liable to be deleted. - Decided in favour of assessee.
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