The case involves the validity of assessments u/s 153A and 132...

The case involves the validity of assessments u/s 153A and 132 of the Income Tax Act. In the absence of incriminating material seized during the search, assessments cannot be solely based on routine additions. The jurisdiction u/s 153A requires the presence of undisclosed income or property discovered during the search. Assessments cannot be made solely on the basis of notings on loose sheets without corroborative evidence. The onus lies on the department to provide cogent evidence. Sworn statements must be supported by independent evidence. Taxation of undisclosed stock and unaccounted sales u/s 115BBE requires proper identification of income sources. In the absence of evidence linking income to unknown sources, excess stock found during the search should be treated as business income. The application of section 69B with section 115BBE should be based on concrete evidence. The assessment should reflect income derived from the normal course of business.