Pre-search records not ‘incriminating’, No addition u/s 153A without incriminating material found during search: Karnataka HC

PCIT Vs Ind Sing Developers Pvt. Ltd. (Karnataka High Court) Pre-search records not ‘incriminating’, No addition u/s 153A without incriminating material found during search: Karnataka High Court A search u/s 132 was conducted on 26.08.2008. AO passed order u/s 153A r.w.s. 143(3) treating sale proceeds as business income, relying primarily on a senior advocate’s opinion found during search. CIT(A) held it to be capital gains. ITAT ruled that assessment should be in hands of AOP, not the assessee. No valid incriminating material was found to support the addition in post-search reassessment...