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2022 (8) TMI 255 - Income Tax
Validity of assessment u/s 153A - scope of materials found in search - HELD THAT:- As decided in the case of Pr. CIT and ors. vs. Meeta Gutgutia Prop. Ferns ‘N’ Patels and Ors. ( [2017 (5) TMI 1224 - DELHI HIGH COURT] Hon’ble Delhi High Court reiterated with approval their observations in Kabul Chawala’s case (2015 (9) TMI 80 - DELHI HIGH COURT) that completed assessments could be interfered with by AO while making assessment under section 153A only on basis of some incriminating material unearthed during course of search. If in relation to any assessment year, no incriminating material was found, no addition or disallowance could be made in relation to that assessment year in exercise of powers under section 153A and earlier assessment should have to be reiterated. This decision has been affirmed by the Hon’ble Supreme Court by dismissing the Revenue’s SLP in PCIT vs. Meeta Gutgutia [2018 (7) TMI 569 - SC ORDER]
We hold that the assessment for AY 2013-14 was already completed prior to the date of search and having not abated, the scope of proceedings under section 153A of the Act had to be confined only to material found in the course of search. Since no material on the basis of which the impugned addition has been made was found in the course of search, the addition made by the Ld. AO in the order of the assessment could not have been subject matter of proceedings under section 153A of the Act. Consequently, impugned addition could not be made. - Decided in favour of assessee.