Assessment U/s. 153A-No incriminating material- No Addition can be made

DCIT Vs Sopariwala Exports (ITAT Mumbai)

So far as the facts are concerned, it is uncontroverted position as noted by the learned Commissioner (Appeals) that no incriminating material was found in the search operations qua the additions and the additions were not based on any incriminating material. The original assessment under section 143(3) had already completed on 26-12-2006 whereas the search took place on 29-4-2008 which clearly reflect that no assessment was pend­ing on the date of search operations and no proceedings have abated on the date of search. Therefore, we find that, at the moment, the issue stood squarely covered in the assessee’s favour by the cited decision of the juris­dictional Bombay High Court as rightly noted by the learned Commissioner (Appeals). Similar view has been taken by the Hon’ble Delhi High Court in CIT v. Kabul Chawla (2016) 380 ITR 573 (Delhi). Further, upon a perusal of SLP No. 18560 of 2015 dated 12-10-2015 admitted by the Hon’ble Supreme Court against the decision of the Hon’ble Bombay High Court rendered in CIT v. Continental Warehousing Corpo­ration (supra), we find that the Hon’ble Apex Court has only admitted a special leave petition against the ruling of the Hon’ble Bombay High Court’s finding that no addition can be made in respect of assessments which have become final if no incriminating material is found during search or during section 153A proceedings.

FULL TEXT OF THE ITAT JUDGMENT