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2018 (1) TMI 1490 - ITAT AHMEDABADAssessment u/s 153A - whether, while making assessment u/s.153A, the Revenue is entitled to interfere with the assessment concluded either u/s 143(1) or u/s 143(3) and not pending at the time of search in the absence of any incriminating material unearthed as a result of search? - HELD THAT:- Total absence of reference to any incriminating material which may have any bearing to impugned additions/disallowances. As a corollary, it is manifest that additions/disallowances have been made without reference to any specific incriminating material/document found as a result of search and seizure action under s.132 of the Act and is based on re-appreciation of facts unconnected to search. Income-tax return for the relevant assessment years were filed prior to the search in the normal course suo motu incorporating the items of income/expenditure which are subject matter of considerations in the assessment framed u/s 153A. The returns for various assessment orders in question so filed in ordinary course were accepted under s.143(1) of the Act and/or assessed under s.143(3) and as such no assessment was eventually pending on the date of initiation of search which may get abated in consequence of search. Accordingly, various additions/disallowances made by the AO are clearly beyond the scope of authority vested under s.153A of the Act owing to absence of any incriminating material or evidence. Thus in the absence of any incriminating material/evidence, no addition can be sustained under s.153A is no longer res integra in view of the decision of the Hon'ble Jurisdictional High Court in the case of Saumya Construction (P.) Ltd. [ 2016 (7) TMI 911 - GUJARAT HIGH COURT] and Devangi alias Roopa [2017 (2) TMI 724 - GUJARAT HIGH COURT] . Similar view was earlier taken by the Hon'ble Delhi High Court in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] . Additions/disallowances made without any nexus to incriminating material found, if any, as a result of search operations are not sustainable in the eyes of law in section 153A of the proceedings. - Decided in favour of assessee.
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