TMI Blog2022 (7) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Kapis Impex LLP [ 2020 (7) TMI 44 - ITAT DELHI] Predecessor Division Bench of this Court in Kabul Chawla (supra) has held that if no incriminating material is found during the course of the search in respect of an issue, then no addition in respect of such an issue can be made in the assessment under Sections 153A and 153C of the Act. Though the judgment in Kabul Chawla (supra) has been challenged in connected matters and is pending before the Supreme Court, yet there is no stay of the said judgment till date. Accordingly, this Court finds no ground not to follow the said judgment. Keeping in view the aforesaid, this Court is of the opinion that the question of law raised in present appeal has been settled by earlier Division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arwal was recorded on 8th July, 2015 and the statement of Shri Madho Gopal Agarwal was recorded during post search inquiry. 3. Pursuant to the aforesaid search, notice under Section 153A of the Act was issued on 26th September, 2016 by the Assessing Officer and the same was duly served upon the assessee. In response, the assessee filed her Income Tax Return declaring income of Rs. 5,40,550/- on 2nd March, 2017. The Assessing Officer, after making reference to the documents discovered during the raid, vide order dated 29th December, 2017 made the following additions to the income of the assessee under Section 69B and Section 68 of the Act respectively: Total income computed by the Assessing Officer Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year under appeal on 28th September, 2011. The search was conducted on 8th July, 2015 and on the date of the search, the assessment under appeal was completed as the time period to issue notice under Section 143(2) of the Act for the said year has expired. The ITAT thus, observed that on the date of search i.e. on 8th July, 2015, assessment for the assessment year 2010-11 had attained finality and was not pending assessment. The ITAT, therefore, held that any additions over and above the earlier assessed income could not be made in the absence of any incriminating material found during the course of search. 7. No material has been placed on record before this Court to rebut the aforesaid findings of the ITAT. 8. The ITAT, upon appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) , the ITAT has noted that identical grounds of appeal have been raised and as noted above, the said appeals, already stood dismissed. The ITAT, therefore, concluded that there was no new ground made out by the department for taking a view different from Madho Gopal Agarwal and M/s Kapis Impex LLP (supra) . 10. The ITAT, therefore, concluded that since no assessment was pending for the relevant assessment year 2010-11 on the date of search and no incriminating material was found during the course of search, the issue is covered in favour of the assessee by the judgment of this Court in the case of Commissioner of Income Tax vs. Kabul Chawla (2016) 380 ITR 573 and Principal CIT vs. Meeta Gutgutia (2017) 395 ITR 526 as well as b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s there will be only one assessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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