TMI Blog2022 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... earch, no addition can be made without any incriminating material or documents found during the course of search. This has been held so by the Hon ble jurisdictional High Court in the case of CIT Vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] and Pr. CIT Vs. Meeta Gutgutia [ 2017 (5) TMI 1224 - DELHI HIGH COURT] This fact has also not been challenged by the ld. CIT (Appeals) and that the addition cannot be based on the material found during the course of search. Accordingly, the additions made by the Assessing Officer are beyond the scope of assessment proceedings under Section 153A - Decided in favour of assessee. - ITA. Nos. 4985, 4986, 4987 And 4988/Del/2018 - - - Dated:- 27-1-2022 - Shri Amit Shukla, Judicial Member A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in upholding disallowance a claim of deduction of ₹ 1,08,000/- out of ₹ 6,89,008/- representing interest paid on loans raised for business purposes and eligible for deduction u/s 36(l)(iii) of the Act. 2.1 That the learned Commissioner of Income Tax (Appeals) has upheld the disallowance by failing to appreciate the fact and circumstances of the case of the appellant, statutory provisions of law and evidence on record, including the submissions filed by the appellant. 2.2 That the finding recorded by the learned Commissioner of Income Tax (Appeals) are factually incorrect, contrary to evidence on record and, therefore disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of incriminating material found during the course of search and the additions have been made without any material found during the course of search and in support reliance was placed on various decisions. However, the ld. CIT (Appeals) held that there is no requirement that the assessment should be based on any material found during the course of search. The relevant observations of the ld. CIT (Appeals) reads as under:- 3.1.4 U/s 153 A assessing officer is duty bound to issue notices requesting for filing returns separately for each of the six assessment years immediately preceding assessment year relevant to the previous year in which search has been conducted or requisition u/s 132A has been made. There is a mandate in the section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed along with the return of income. It is now well-settled law that in the case of unabated assessment, where the assessments have become final before the date of search, no addition can be made without any incriminating material or documents found during the course of search. This has been held so by the Hon ble jurisdictional High Court in the case of CIT Vs. Kabul Chawla reported in 380 ITR 573 and Pr. CIT Vs. Meeta Gutgutia reported in 395 1TR 526. 6. This fact has also not been challenged by the ld. CIT (Appeals) and that the addition cannot be based on the material found during the course of search. Accordingly, the additions made by the Assessing Officer are beyond the scope of assessment proceedings under Section 153A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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