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2023 (10) TMI 392 - AT - Income TaxAssessment u/s 153A - unabated / completed assessment - Date of completion of original assessment or where no assessment was made, before search proceedings - Issue of no notice u/s 143(2) - whether additions made in these two years are based on any incriminating material found during the course of search? - HELD THAT:- We noticed earlier that the search operations were conducted in the hands of the assessee on 13-06- 2014. We notice that the original assessment was completed for AY 2010-11 u/s 143(3) of the Act on 19-03-2013, i.e., prior to the date of search. Hence this year would fall under the category of “unabated/completed” assessment year. For AY 2012-13, the assessee had filed return of income on 29.11.2012. No assessment u/s 143(3) has been passed, but the time limit for issuing notice u/s 143(2) has expired prior to the date of search. The Hon’ble Delhi High Court has held in the case of Chintels India Ltd [2017 (7) TMI 746 - DELHI HIGH COURT] has held that the return filed would become final if no notice u/s 143(2) of the Act was issued within the limitation period prescribed for issuing the same. Accordingly, the AY 2012- 13 would also fall under the category of “unabated/completed assessment”. The additions made by the Assessing Officer in both the years under consideration are not based upon any incriminating material found during the course of search operations. Since both the years under consideration fall under the category of “unabated assessment years”, the Assessing Officer could not have made addition in both years in the absence of any incriminating material relating to the same. The above said decision of ours is based upon the decision rendered in the case of Abhishir Buildwell P Ltd [2023 (5) TMI 587 - SUPREME COURT] as held no addition can be made in respect of completed assessments in absence of any incriminating material. Accordingly, the AO could not have made the impugned additions in the assessment completed u/s 153A of the Act, since no incriminating material relating to both the years under consideration was found during the course of search. Thus we are of the view that the additions made by the Assessing Officer in both the years under consideration are liable to the deleted. Decided in favour of assessee.
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