Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 822 - AT - Income TaxAssessment u/s 153A - addition on account of credit entries in the bank account is in the nature of incriminating material found during the course of search or the bank account was undisclosed account - HELD THAT:- It transpires that these are the bank accounts of the assessee duly disclosed in the balance sheet and even the amounts received as advances have been duly disclosed and shown in the respective balance sheets of the individuals. In all these cases, the original return of income was filed on July 2011 and thereafter, no notice u/s 143(2) was issued, which inter alia means that the return of income had attained finality and is to be reckoned as assessed income. On the date of search i.e., on 20.3.2016 the assessment for the assessment year 2011-12 is to be treated as unabated assessment in terms of second proviso to section 153A. If that be the situation, then any addition which has to be made should be based on incriminating material qua that assessment year during the course of search and seizure operation. There are now plethora of various high Court judgments which have reiterated the principle that in case of unabated assessment, the addition can be made in the assessment framed u/s 153A only when there is any incriminating material found during the course of search and it is only in the cases of abated assessment AO has power to assess or reassess the undisclosed income and the other income. CIT (A) in the impugned order has not disputed the fact that the additions made by the AO in all the four cases are based on any incriminating material found during the course of search albeit they are based on entries in the regular bank account duly disclosed by the assessee. It is not the case of the AO that these are unaccounted bank statements which were unearthed during the course of search. Hence it can be concluded that these additions are not based on any incriminating material found during the course of search and thus in such a situation thus such an addition are beyond the scope of assessment u/s 153A therefore, the same are directed to be deleted. Appeals filed by the assessee are allowed.
|