[2020] 114 taxmann.com 536 (Ranchi-Trib.)

Where no incriminating evidence against assessee was found or seized during course of search, invocation of provisions of section 153A and making additions/disallowances on basis of a tax evasion petition found much after search was unjustified

Section 153A of the Income-tax Act, 1961 – Search and seizure

– Assessment in case of (Condition precedent)

– Assessment years 2009-10 to 2015-16 – Whether invocation of section 153A to reopen concluded assessments of earlier assessment years is not permissible in absence of incriminating material found during search qua each such earlier assessment years

– Held, yes

 – During search conducted at premises of PKI group of cases with whom assessee was involved in transactions of sale and purchase in ordinary course of business, certain documents were found and seized – A notice under section 153A was issued against assessee

– Subsequently, Assessing Officer completed assessment making various additions/disallowances to income of assessee – It was noted that no evidence was stated to be found at search of assessee to suggest existence of any undisclosed income – Revenue had failed to rebut factual assertions of assessee towards non-discovery of incriminating material at time of search

 – Additions were made by Assessing Officer solely on basis of some tax evasion petition found at a much later stage post search

– Whether impugned additions/disallowances made by Assessing Officer were clearly beyond scope of authority vested under section 153A owing to absence of any incriminating material or evidence found during search and, thus, same was to be set aside

 – Held, yes

Rajat Minerals (P.) Ltd.