ZX DRUGS PRIVATE LIMITED,KARNAL vs. ACIT, CENTRAL CIRCLE, KARNAL

It emerges during the course of hearing that there arises first and foremost issue of validity of the impugned section 153A assessment dated 31.12.2019 challenge the same for want of any incriminating material found and seized during the course of search herein dated 22.01.2018. We sought to verify this clinching fact from the Revenue’s side represented by the learned CIT(DR) who has taken us to para 3 in the assessment order that the assessee was not even found at the address declared in the income tax return which renders itself as bogus entity only.

We have given our thoughtful consideration to the assessee and Revenue’s foregoing vehement submissions. There is hardly any dispute between the parties that we are dealing with an “unabated” assessment in A.Y. 2012-13 as on the date of search i.e. 22.01.2018 wherein any addition in course thereof has to be made based on the specific seized material as per PCIT v. Abhisar Buildwell (2023) 149 taxmann.com 399 (SC). This being the clinching legal proposition, we are of the considered view that the mere fact of the assessee not even found at the given address at a particular point of time would not itself constitute an incriminating material seized during the course of search so as to validate the assessment herein framed by the learned Assessing Officer. We accordingly find merit in the assessee’s instant and foremost argument to delete the section 68 addition of very terms. Ordered accordingly.