Reaffirming the Bounds of Section 153A: Analysis of Delhi High Court's Approach: Assessment post search and seizure

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.... by the Delhi High Court in a series of appeals under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The central issue revolves around the implications of Section 132(4) statements in assessments under Section 153A, particularly in the context of long-term capital gains (LTCG) and the admissibility of evidence obtained during search and seizure operations. The jud....

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....tries to convert unaccounted cash into legitimate LTCG. The AO made additions to the income based on these statements, which were later challenged and set aside by the ITAT. Legal Issues * Admissibility and Evidentiary Value of Section 132(4) Statements: A critical issue was the use of statements recorded under Section 132(4) during the search operation as the sole basis for making additions ....

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....l was emphasized, aligning with the principle that evidence must be reliable and robust, especially in matters of taxation. * Interpretation of Section 153A: The judgment sheds light on the scope of Section 153A, affirming the need for incriminating material as a prerequisite for making additions post-search. The court relied on the precedent set in the case of CIT v. Kabul Chawla [2015 (9) TM....