https://www.taxtmi.com/caselaws?id=775212 ITAT Chandigarh held that assessment orders u/s 153A were invalid where no incriminating material was found during search relating to the assessee. The Tribunal applied s 153C provisions, ruling that material found during third-party searches cannot be used for s 153A assessments unless s 153C proceedings are pending. Multiple additions were deleted including deemed dividend u/s 2(22)(e) based on current account transactions, property valuation differences relying solely on DVO reports without corroborating evidence, and stock shortage claims due to flawed inventory taking excluding work-in-progress. The Tribunal partially allowed appeals regarding circular transactions within group companies, restricting s 80IC deductions on artificial turnover inflation but deleting commission additions. Bad debt claims were allowed despite not being written off in books. Purchases from alleged bogus parties were held genuine based on proper documentation and TDS/GST compliance. Jewellery additions were deleted considering family status and community customs. Assessment orders were quashed due to mechanical s 153D approvals. en-us Mon, 03 Mar 2025 00:00:00 +0530 Mon, 21 Jul 2025 15:37:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775212 ITAT Chandigarh held that assessment orders u/s 153A were invalid where no incriminating material was found during search relating to the assessee. The Tribunal applied s 153C provisions, ruling that material found during third-party searches cannot be used for s 153A assessments unless s 153C proceedings are pending. Multiple additions were deleted including deemed dividend u/s 2(22)(e) based on current account transactions, property valuation differences relying solely on DVO reports without corroborating evidence, and stock shortage claims due to flawed inventory taking excluding work-in-progress. The Tribunal partially allowed appeals regarding circular transactions within group companies, restricting s 80IC deductions on artificial turnover inflation but deleting commission additions. Bad debt claims were allowed despite not being written off in books. Purchases from alleged bogus parties were held genuine based on proper documentation and TDS/GST compliance. Jewellery additions were deleted considering family status and community customs. Assessment orders were quashed due to mechanical s 153D approvals. Case-Laws Income Tax Mon, 03 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775212