Income tax search assessments: s.153A additions u/s68 require seized incriminating material; revenue appeals dismissed The dominant issue was whether, in an assessment under s.153A of the Income-tax Act, an addition under s.68 can be sustained without being based on ...
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The dominant issue was whether, in an assessment under s.153A of the Income-tax Act, an addition under s.68 can be sustained without being based on incriminating material seized during the search, and whether the AO can rely on other material already on record. Applying the SC's binding ruling in Abhisar Buildwell, the Court held that, for completed/unabated assessments, additions in s.153A proceedings must be founded on incriminating material unearthed in the search and cannot be made merely on the basis of other pre-existing record. Consequently, the Revenue's challenges were rejected and the SLPs were dismissed.
The Supreme Court of India dismissed the Special Leave Petitions as the issue was already decided against the Revenue in a previous case. The decision was based on the case of Principal Commissioner of Income Tax, Central -3 Vs. Abhisar Buildwell P. Ltd. (Civil Appeal No. 6580/2021, 24.04.2023).
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