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2021 (9) TMI 889 - AT - Income TaxAssessment u/s 153A - importance of existence of incriminating material for making the additions - as case where proceedings are not pending, could not be applied in absence of any incriminating material - HELD THAT:- Assessing Officer had not made the addition on the basis of any incriminating material and rather he has made the addition on the basis of entries in the books of account which is not in accordance with law with the settled position of law in a number of cases it has been held by various High Courts that in case of concluded assessment the addition can be made only on the basis of incriminating material found during search. Even Hon'ble Supreme Court in the cases of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] and Meeta Gutgutia [2018 (7) TMI 569 - SC ORDER] has dismissed the SLPs filed by the Department against the order of Hon'ble High Courts. The Lucknow Bench in a number of cases has allowed this ground of appeal under similar facts and circumstances after placing reliance on the order of Hon'ble Supreme Court in the case of Meeta Gutgutia [2018 (7) TMI 569 - SC ORDER] The existence of incriminating material for making additions u/s 153A is strengthened from the decision of Hon'ble Supreme Court in the case of CIT vs. Sinhgad Technical Education Society[2017 (8) TMI 1298 - SUPREME COURT]where Hon'ble Supreme Court in a case u/s 153C has again highlighted the importance of existence of incriminating material for making the additions. The Hon'ble Supreme Court went on to hold that the Assessing Officer, while relying on the incriminating material, has to make reference in the satisfaction note regarding year-wise existence of incriminating material. Since there is an interplay between section 153A and section 153C, the findings of Hon'ble Supreme Court in a case u/s 153C are also applicable for making additions u/s 153A of the Act. We find that in these appeals also the additions has not been made on the basis of any incriminating material and rather has been made on the basis of entries in the books of accounts. The dates of filing of returns as mentioned in the chart reproduced earlier in this order are found to be correct from the copies of returns placed in respective paper book pages. The period of issue of notice u/s. 143(2) in the above cases expired on 30.09.2012 and 30.09.2013 respectively whereas the search took place on 31.08.2015 therefore assessments in these cases also stood completed before the date of search . - Decided in favour of assessee.
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