Tax Appeal Dismissed for Absence of Incriminating Material

The Tax Appeal was dismissed as the court upheld the deletion of additions made under section 68 and section 69C of the Income Tax Act, citing the absence of incriminating material found during search. The court clarified that Assessing Officers cannot make additions in the absence of such material for completed assessments, as established in the case law referenced. Consequently, the appeal was rejected based on established legal principles.

---

---

Issues involved:
The issues involved in this case pertain to the deletion of additions made under section 68 and section 69C of the Income Tax Act, 1961, and the jurisdiction of the Assessing Officer in making assessments under section 153A of the Act.

Deletion of Additions under Section 68 and Section 69C:
The case revolves around an assessment order determining total income and making additions under section 68 and section 69C of the Act on account of alleged bogus long term capital gain. The Commissioner of Income Tax (Appeals) allowed the appeal of the assessee by deleting the additions, citing the absence of incriminating material found during search. The Income Tax Appellate Tribunal upheld this decision, leading to the present Tax Appeal.

Jurisdiction of Assessing Officer under Section 153A:
The appellant contended that the Assessing Officer has the authority to consider all material available on record, including that found during a search, for making assessments of 'total income'. However, the supreme court in the case of Principal Commissioner of Income Tax, Central-3 vs. Abhisar Buildwell P. Ltd. clarified that in the absence of incriminating material, no additions can be made in respect of completed or unabated assessments. The court cited previous decisions by the Gujarat High Court and the Delhi High Court to support this view, emphasizing the importance of seized material in making assessments under section 153A.

Conclusion:
In light of the supreme court's decision in Abhisar Buildwell P. Ltd., which established that no additions can be made in the absence of incriminating material for completed assessments, the appeal was dismissed. The court found that no question of law, let alone a substantial one, arose in this case, as per the legal principles laid down by the supreme court.

---