Unsecured Loans Disallowed: No Incriminating Material Found, Tribunal Rejects Addition of Unexplained Cash Credits Under Section 153A

In an ITAT proceeding involving assessment u/s 153A, the tribunal examined unsecured loans treated as unexplained cash credits. Based on precedents in Kabul Chawla and Abhisar Buildwell Pvt. Ltd., the tribunal held that for unabated assessments, additions cannot be made without incriminating material from the assessee's premises. Since no notice u/s 143(2) was issued before the search date and no pending scrutiny assessment existed, the tribunal set aside the CIT(A)'s finding and disallowed the addition of unsecured loans, thereby allowing the assessee's appeal. .....

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