Sec. 153A of Income-tax Act, 1961— Search and seizure—In the absence of incriminating material, the completed assessment can be reiterated and cannot be interfered with by AO while making the assessment under s. 153A without any incriminating material unearthed during the course of search

Facts: Ground raised by assessee is that AO pursuant to the search and seizure action under s. 132 carried out on 26th July, 2015 whereby the AO made additions under s. 68 on account of the share premium and share capital received by these companies during the financial years relevant to the assessment years under consideration.

Held, that an assessment framed under s. 153A in respect of a year which was not pending as on the date of search and which does not abate, the same can be disturbed only on the basis of incriminating material. Hence, CIT(A) has held that in absence of incriminating material, the completed assessment can be reiterated and cannot be interfered with by the AO while making the assessment under s. 153A without any incriminating material unearthed during the course of search. The relevant facts leading to the conclusion that AO has repeated the addition while framing the assessment under s. 153A pursuant to the search without any incriminating material found or seized during the course of search action is not in dispute. The Revenue has supported its case only on the statements recorded by the AO during the course of assessment proceedings which in our considered view do not constitute incriminating material found or seized during the course of search. Further, even those statements recorded by AO have not resulted in any fact or material to indicate any undisclosed income or unexplained cash credits which can be added under s. 68. Accordingly, in the facts and circumstances of the case, we do not find any error or illegality in the impugned order of CIT(A) in deleting the addition. Hence, we uphold the same. - DEPUTY CIT V/s MOTISONS BUILDTECH (P) LTD. - [2020] 205 TTJ 484 (ITAT-JAIPUR)