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2022 (3) TMI 762 - AT - Income TaxAssessment u/s 153A/153C - Proof of incriminating material found in search - HELD THAT:- Nowhere, the Ld. CIT (Appeals) has stated that the addition which has been made by the Assessing Officer are based on any seized documents mentioned in the satisfaction note recorded under Section 153C of the Act. Despite noting the fact that only those additions can be made for the unabated assessments which are based only on the incriminating material, as held by the Hon'ble Apex court in the case of CIT Vs. Sinhgad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] and in the case of CIT Vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] and other decisions quoted by him, he has summarily rejected the contention of the assessee that they are beyond the scope of addition or assessment for the unabated assessment years. From the perusal of the satisfaction note as incorporated above, only two documents can be said to be relevant to assessment years 2010-11 and 2012-13 and not for assessment year 2009-10 or 2011-12. Even the documents pertaining to assessment year 2010-11, we find that it is annual report of M/s. Panchmukhi Management Services Pvt. Ltd. as on 31.03.2012, which was an audit report and the financial statement of the assessee company. This document cannot be treated as incriminating, or can be inferred as indicating any undisclosed income or anything which can be corroborated by any other incriminating material found in the course of search. Thus, audited annual report per se cannot be treated as incriminating material. the original share certificates dated 9.01.2010 which were transferred to the assessee company cannot be treated as incriminating, because, firstly, the Assessing Officer himself has not taken cognizance of this document while making the additions. In any case, the original share certificates in any manner can be reckoned as incriminating without any corroborating document or material found in the course of search that they are not genuine or indicative of undisclosed income. Thus, none of the documents as mentioned can remotely be considered as incriminating so as to warrant any addition within the scope of assessment under Section 153A/153C of the Act in these years where assessments were not abated and attained finality. Accordingly, we hold that none of the additions made by the Assessing Officer in assessment year 2010-11 to 2012-13 are sustainable in the absence of any incriminating or material found during the course of search or the reservations and satisfaction note. As Assessing Officer has made protective addition in the case of the assessee and the substantive additions made in different concerns has already been deleted by the Tribunal on merits additions made on protective basis, cannot be sustained otherwise also. - Decided against revenue.
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