No Income Addition Without incriminating material from search: Delhi HC

PCIT Vs Suman Agarwal (Delhi High Court)

The Delhi High Court has dismissed an appeal filed by the tax department, affirming a ruling by the Income Tax Appellate Tribunal (ITAT) that set aside a tax addition made against an individual regarding long-term capital gains (LTCG) from share sales. The court reiterated that in completed tax assessments, additions under Section 153A of the Income Tax Act, 1961, can only be justified by incriminating material unearthed during a search operation.

The case, Principal Commissioner of Income Tax (PCIT) Versus Suman Agarwal, originated f

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