DCIT Vs Sanjeev Aggarwal (ITAT Chandigarh)
In DCIT vs. Sanjeev Aggarwal, the Income Tax Appellate Tribunal (ITAT) Chandigarh addressed the validity of additions made under Section 153A of the Income Tax Act, 1961. The case stemmed from a search conducted on November 15, 2017, on the Scott Edil group, leading to reassessments under Section 153A. The Revenue appealed against the CIT(A)’s decision to delete additions made by the Assessing Officer (AO), arguing that digital data seized during the search constituted incriminating material. The assessee, in cross-objections, challenged the assessment’s jurisdiction and specific additions under Sections 2(22)(e) and 69C. The ITAT noted that assessments for the relevant years were already completed before the search, and no new incriminating material was found that justified the additions.
Citing the Supreme Court’s ruling in PCIT vs. Abhisar Buildwell (P) Ltd., ITAT ruled that additions under Section 153A cannot be made in the absence of incriminating material if the assessment is not pending at the time of search. Accordingly, the ITAT upheld the CIT(A)’s deletion of the additions, rendering the assessee’s cross-objections academic. The appeals and cross-objections were dismissed, reinforcing the principle that reassessments post-search must be based on concrete evidence rather than reappraisal of existing records.
