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TMI Blog2025 (2) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... ring total income at Rs. 3,41,980/-which stood processed. A search and seizure action u/s132 of the Income Tax Act, 1961 ("the Act", in short) was carried out in the case of Orbit group of cases on 13.05.2014 and the proprietary firm of the assessee was also search. Thereafter the notice u/s 153A of the Act was issued on 29.06.2016, in response to which the assessee filed return of income on 17.10.2016 declaring same income as was declared in the return filed u/s 139(1). Thereafter the assessment was completed u/s 153C r.w.s. 143(3) of the Act dt. 31.12.2016 at a total income of Rs. 86,93,090/- by making various additions. Against the said order assessee preferred appeal which is dismissed by the ld. CIT(A) vide impugned order dt. 09.12.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rring to any single incriminating paper found as result of search. He, therefore submitted that in the scheme of search assessment u/s 153A no addition could be made in absence of incriminating material and for this he placed reliance in the case of PCIT Vs. Abhisar Buildwell (P) Ltd. reported in [2023] 149 taxman.com 399 (SC). Ld. AR also filed a written submission on this issue which reads as under "2). No incriminating Material-No addition Where in course of proceedings u/s. 153A/153C, Assessing Officer made various additions / disallowance, in view of fact that said additions /disallowances had been made without reference to any specific incriminating material / document found as a result of search and were based on re-appreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned Under Sections 147/148 of the Act and those powers are saved. b) ACIT, Central Circle-1 vs. Enpro Telecom Pvt. Ltd. (08.02.2024 -ITAT Delhi): MANU/ID/0130/2024 [Annexure C-7] [Para 9, Page 61]. 9. Since, we have held that the Assessing Officer could not have made any addition in the absence of any incriminating material seized in the course of search the appeal filed by the Revenue challenging the order of the Ld. CIT(A) in deleting addition/disallowance on merits becomes infructuous. c) Meera Gupta vs. DCIT, Circle-20(1) (13.03.2024 ITAT Delhi): MANU/ID/0311/2024 [Annexure C-19] [Para 10]. 10. Guided by the principles laid down in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO has only made the addition by invoking the provisions of Section 68 of the Act on account of unexplained cash credits, receipts from the sale of house u/s 57 and trading addition on additional sales. The observations made by the AO in para 10 of the assessment that the additional sales was shown by the assessee is based on the statement of affairs filed by the assessee during the course of assessment proceedings on 27.12.2016 and neither any incriminating material found as a result of search indicating additional sales is referred nor brought on record. The Hon'ble Supreme Court in the case of Abhisar Buildwell (P) Ltd. (supra) has categorically and specifically used the term 'incriminating material' and has never used the term 'incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or before the Tribunal. Therefore, by respectfully following the judgement of Hon'ble Apex Court in the case of Abhisar Buildwell (supra), we are of the opinion that no addition could be made in the hands of the assessee in the order passed u/s 153A in absence of any incriminating material. Accordingly, we direct to delete the additions made without referring to any incriminating material. However, in view of the decision of the Hon'ble Supreme Court in the case of Abhisar Buildwell (supra), liberty is granted to the AO to initiate reassessment proceedings u/s.147/148 of the Act as per law in case of completed/unabated assessment, if no incriminating material found during the course of search. Accordingly, the ground of appeal no. 1 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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