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2024 (2) TMI 1199 - AT - Income TaxValidity of assumption of jurisdiction u/s. 153C - additions challenged on the ground that they are not based on any incriminating material - whether addition seized material does disclose any unaccounted/ undisclosed income of the assessee? HELD THAT:- Admittedly, in the assessment order the AO has not made any addition with reference to seized material. In fact, said seized material does not disclose any unaccounted/ undisclosed income of the assessee. Therefore, in our view, assumption of jurisdiction u/s.153C of the Act based on such document is invalid. Even, otherwise now it is fairly well settled that in case of unabated assessment no addition can be made in absence of incriminating material found during the search and seizure operation. As discussed earlier, the only incriminating material referred to in the satisfaction note is the trust deed of PGP charitable trust. Though, in the assessment order the AO has made a number of additions, however, none of them are with reference to the incriminating material referred to in the satisfaction note. Whereas, the additions are based on some other material. Thus, case of Abhisar Buildwell [2023 (4) TMI 1056 - SUPREME COURT] squarely applies to the facts of the present case. Therefore, considering the totality of facts and circumstances of the case, we hold that not only the assumption of jurisdiction u/s.153C is invalid, but, the additions made are unsustainable as they are not with reference to any incriminating material. Accordingly, we delete the additions. Decided in favour of assessee.
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