2020 (7) TMI 45

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....t the ld. CIT(A) erred in law in relying upon the decision of the Hon'ble High Court of Delhi in the case of Kabul Chawla 380 ITR 573 and in holding that completed assessment could not be interfered by the Assessing Officer without incriminating material. 3. Briefly stated, the facts of the case are that search and seizure operations alongwith survey operation were conducted on 08.07.2015. Accordingly, statutory notices were issued and served upon the assessee. 4. In response to the notice u/s 153A of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short], the assessee filed return of income declaring NIL income on 08.03.017. Assessment was framed u/s 153A r.w.s 143(3) of the Act vide order dated 29.1....

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....the case of appellant. The only basis of addition made by AO is that the appellant has made bogus purchases. 6.1. In such situation, when no incriminating evidence is found and assessment in this year is a completed assessment, can any addition/disallowance be made, the issue has been dealt with and answered by Hon'ble Jurisdictional High Court in the case CIT vs Kabul Chawla, as mentioned by appellant in its submissions. Hon'ble Court has taken a view in such cases that although section 153A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the Assessing Officer which can be related to the evidence foun....

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....n. It is clear from the assessment order as well as submissions of the appellant that search and seizure action 132(1) of the Act was undertaken by the Department in the case of appellant as on 08.07.2015 and on that date, assessment of A.Y. 2012-13 was completed assessment as the time period to issue notices u/s 143(2) for aforesaid year had already expired. Further, as mentioned above, no incriminating material was found in the case of the appellant during the search proceedings for making assessment in this year. Therefore, on both the counts, no addition/disallowance could have been made by AO by disturbing the income disclosed in the return filed by appellant. In such situation, the addition/disallowance made by AO, as mentioned above,....