2025 (8) TMI 527

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....(hereinafter referred to as the "Act") by ACIT, Central Circle-4(2), Kolkata dated 30.03.2022. 2. At the outset we note that the revenue appeal is time barred by 31 days. An application for condonation of delay dated 03.05.2024 has been filed by the revenue stating the administrative reasons for filing the appeal in 31 days. Considering the application of the revenue, we condone the delay and admit the appeal of the revenue for adjudication. 3. The revenue has filed appeal before us challenging the deletion of addition to the tune of Rs. 4,08,45,000/- by Ld. CIT(A) as made by the AO u/s. 68 of the Act in respect of bogus share capital/share premium. Whereas the assessee has, by way of cross objection, challenged the jurisdiction of th....

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....e at Rs. 10,96,073/-. Thereafter, statutory notices were issued along with questionnaire which were duly replied by the assessee. Pertinent to state that the impugned assessment is an unabated assessment on the date of search as there were no pending proceeding and also the time period prescribed under the Act for issuing notice u/s. 143(2) had also expired. The AO after taking into account the contentions and submissions of the assessee made two additions to the income of the assessee namely (i) in respect of share capital /share premium of Rs. 4,08,45,0000/- and (ii) in respect of profit for sale of investment of group companies of Rs. 3,00,140/- u/s. 68. 5. The Ld. CIT(A) in the appellate proceeding allowed the appeal of the assessee ....

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....erials seized during the search. N our opinion the addition in case of unabated assessment can only be made with reference to incriminating materials seized during search and not otherwise. We note that in the appellate order, Ld. CIT(A) has clearly recorded a finding of fact that AO has not referred to any incriminating materials found during the course of search qua the share capital/share premium and scrip sold by the assessee during the impugned financial year. Accordingly, we are in agreement with the Ld. CIT(A) that addition in case of unabated assessment year can only be made on the basis of search material found and seized during search. The case of the assessee is squarely covered by the decision of Hon'ble Supreme Courtin the case....