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2023 (7) TMI 333 - AT - Income TaxAssessment u/s 153A - addition u/s 69A - incriminating material found during search or not? - HELD THAT:- Admittedly, there was no incriminating document/ material found and seized against the appellant assessee, as it is further evident from the assessment order itself where addition has been made without referring to any incriminating documents. CIT(A) failed to appreciate the facts on record that there was no incriminating document seized and that the assessment was completed passed u/s 143(3)/153C whereby assessing total income after making addition u/s 69A in a routine manner in respect of unabated assessment without referring to incriminating documents is illegal and unjustified. In our view, the impugned order of the CIT(A) are perverse to the facts on record and bad in law. On similar facts, in the recent SC Judgement of Abhisar Buildwell P. Ltd. [2023 (4) TMI 1056 - SUPREME COURT] had observed that in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A. Also in M/s U.K Paints (OVERSEAS) LTD. [2023 (5) TMI 373 - SC ORDER] had observed that as found by the High Court in none of the cases any incriminating material was found during the search either from the Assessee or from third party. In that view of matter, as such, assessments u/s 153-C of the Act are rightly set aside by the High Court. Appeal of assessee allowed.
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