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2019 (5) TMI 409 - AT - Income TaxAssessment u/s 153A - addition u/s 68 - initiation of search action u/s 132 - no incriminating document/material was found during the course of search - assessment was not abated at the time of initiation of search action u/s 132 - HELD THAT:- We find the assessee in the instant case filed the original return of income on 25th September, 2009 for the impugned assessment year. The return was duly accepted and intimation u/s 143(1) of the Act was issued. No assessment or reassessment was completed u/s 143(3) or 148 and no notice u/s 143(2) was issued thereafter or any other proceedings have been commenced to disturb the said return of income. Therefore, it has attained finality prior to the date of search on 18th June, 2013. It is an admitted fact that in the search action u/s 132, no incriminating document/material was found and seized at the time of search and also subsequently. Since at the time of initiation of search action u/s 132 the assessment or reassessment was not abated and the additions made in the assessment order passed u/s 153A dated 29th March, 2016 are not based on any incriminating document/material seized, therefore, in view of the decision in the case of CIT vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] , the addition made by the Assessing Officer cannot be sustained. Thus in absence of any incriminating material found during the course of search, no addition can be made u/s 153A of the Act in case of a non-abated assessment. So far as the loose papers seized and inventorised it is an admitted fact that these papers do not belong to the assessee and these papers belong to the six investor companies of the assessee. Further, these are all statutory combined registers which were required to be maintained as per Companies Act, 1956 and the transactions reflected in the registers pertained to the share issue and transfer in relation to those six investor companies of the assessee. Therefore, this cannot be called as incriminating material. - Decided against revenue.
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