Validity of addition under section 153 C Of Income Tax in the absence of incriminating material being found during the search in respect of such other person in an unabated assessment
Supreme Court has dismissed Revenue appeal challenging various High Court orders on the issue reassessment under Section 153C ( person other than the searched person ) where it has been held by the High Courts that no addition can be made in the absence of incriminating material being found during the search in respect of such other person in an unabated assessment.
Supreme Court has also rejected Revenue prayer of allowing reopening of such assessment on the basis of other information and material with AO, on the basis of which AO has made addition in reassessment under section 153C, now under section 147/148 waiving limitation as AO was under impression that these additions can be made in reassessment proceedings under section 153C. The court has held that Revenue can initiate reassessment proceedings in accordance with law and that too if permissible under the law. This means law of limitation will be applicable and there is no waiver of limitation.