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TMI Blog2018 (8) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Briefly stated facts of the case are that a search under section 132 of the Act took place in the business and residential place of the assessee on 14.3.2012. Notice under section 153A(1) was issued pursuant to which the assessee furnished the return declaring an income of Rs. 5,73,620/-. The Assessing Officer made an addition of Rs. 24 lac on account of unexplained unsecured loan received by the assessee from Smt. Rubina Singh amounting to Rs. 15,00,000/- on 18.9.2006 and Rs. 9,00,000/- on 4.1.2007. The assessee remained unsuccessful before the learned CIT(A). This is how, the appeal has been preferred before the Tribunal. 4. We have heard both the sides and gone through the relevant material on record. Original assessment in this cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 2(22)(e) of the Act. It was submitted before the ld. CIT(A) that no evidence was found during the course of search so as to warrant an addition u/s 2(22)(e) of the Act. The ld. CIT(A) held that the additions need not be restricted only to the seized material. The Tribunal concluded that: 'If some incriminating material is found in respect of such assessment years for which the assessment is not pending, then, the total income would be determined by considering the originally determined income plus income emanating from the incriminating material found during the course of search'. That is how, the additions made u/s 2(22)(e), which were not based on any incriminating material found during the course of search, were held to be unsustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessment order itself, as has been candidly admitted by the ld. DR as well, that there is no reference to any incriminating material in the assessment order qua the creditor in respect of whom addition of Rs. 24.00 lac was made. In that view of the matter, the assessment cannot embrace any fresh disallowance otherwise than that supported by any incriminating material found during the course of search. Respectfully following the judgment of the Hon'ble jurisdictional High Court in Kabul Chawla (supra), we hold that the ld. CIT(A) was not justified in sustaining the addition of Rs. 24.00 lac, which is hereby deleted.
8. In the result, the appeal is allowed.
The order pronounced in the open court on 17.08.2018. X X X X Extracts X X X X X X X X Extracts X X X X
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