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“incriminating material”

Search & SeizureSection 153ASection 153A8,981 judgments

The decision most relied on for incriminating material is CIT v. Kabul Chawla (380 ITR 573), cited in 3,235 judgments on BharatTax.

Leading authorities on incriminating material

CIT v. Kabul Chawla

380 ITR 573 · 2016 · High Court

citing judgments

In a search assessment under Section 153A, additions can only be made for completed or non-abated assessment years if incriminating material relevant to those years is found during the search, although notice under Section 153A(1) is mandatorily issued for six assessment years preceding the search.

Pr. CIT v. Abhisar Buildwell (P.) Ltd.

149 Taxmann.com 399 · 2023 · Supreme Court

citing judgments

An assessment under section 153A is without jurisdiction if there is an absence of incriminating material for an unabated assessment year.

CIT v. Sinhgad Technical Education Society

397 ITR 344 · 2017 · Supreme Court

citing judgments

For assessments under Section 153C, a notice is legally unsustainable if there is no incriminating material correlated to the specific assessment years for which reassessment is sought.

Pr. CIT v. Meeta Gutgutia

395 ITR 526 · 2017 · High Court

citing judgments

In search assessments under Section 153A, additions to income are permissible only if incriminating material is found during the search; in the absence of such material, completed assessments cannot be disturbed. A statement recorded under Section 132(4) and later retracted may not, on its own, constitute sufficient incriminating evidence for making additions.

All Cargo Global Logistics Ltd. v. DCIT

137 ITD 287 · 2012 · ITAT

citing judgments

In non-abated assessments, the Assessing Officer can make additions under section 153A based on books of accounts or documents found during a search but not produced during the original assessment, provided such material is incriminating.

PCIT v. Best Infrastructure (India) (P.) Ltd.

397 ITR 82 · 2017 · High Court

citing judgments

A statement recorded under Section 132(4) of the Income Tax Act, 1961, does not by itself constitute incriminating material for making additions to income.

CIT v. RRJ Securities Ltd.

380 ITR 612 · 2016 · High Court

citing judgments

Completed assessments can be interfered with under Section 153A or 153C only on the basis of incriminating material unearthed during the search, necessitating a direct correlation between the discovered material and the power to assess or reopen concluded assessments.

Pr. CIT v. Saumya Constructions (P.)Ltd.

387 ITR 529 · 2016 · High Court

citing judgments

Assessments under Section 153A cannot be sustained without any incriminating material found during the search that substantiates the additions. This principle applies even to completed assessments where no additional income is disclosed.

Judgments citing incriminating material

Mr. Paul Plathotathil John, Coorg vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 844/BANG/2023[2017-18]Status: DisposedITAT Bangalore24 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

ITA 843/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax. Central Circle-1(1), Bangalore

ITA 842/BANG/2023[2015-16]Status: DisposedITAT Bangalore24 Jul 2024AY 2015-16

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 841/BANG/2023[2014-15]Status: DisposedITAT Bangalore24 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 840/BANG/2023[2013-14]Status: DisposedITAT Bangalore24 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 839/BANG/2023[2012-13]Status: DisposedITAT Bangalore24 Jul 2024AY 2012-13

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

M/S. Paul Resorts & Hotels Pvt. Ltd., Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 838/BANG/2023[2011-12]Status: DisposedITAT Bangalore24 Jul 2024AY 2011-12

Bench: Shri Chandra Poojari & Shri Keshav Dubey

pertinently, the income that can be assessed to tax under section 153A of the Act is only that income which is based on the incriminating material found during the search u/s 132 of the Act as held by the Apex Court in CIT v. Abhisar Buildwell ... OnLine SC 481. However the income that has been assessed by the AO is not based on incriminating material but is based merely on the declaration obtained under pressure without the corresponding incriminating material. As stated earlier, the declaration by way agreeing to disallowance of the expenditure was made with

Assistant Commissioner of Income Tax Circle- 41(1)(1), Mumbai, Kautilya Bhawan, Bkc vs. Jaj International, Mumbai

In the result, the grounds relating to merit the file of the Ld

ITA 2147/MUM/2024[2014-15]Status: DisposedITAT Mumbai24 Jul 2024AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mr. Subhash Shetty

Section 143(3)Section 153C

nature of the not in the nature of the ‘incriminating material’ found during the course of the search. found during the course of the search. Further, neither Further, neither the Assessing officer of searched person has recorded any the Assessing officer of searched person has recorded any the Assessing officer

Assistant Commissioner of Income Tax, Kautilya Bhawan vs. Jaj International, Mumbai

In the result, the grounds relating to merit the file of the Ld

ITA 2146/MUM/2024[2015-16]Status: DisposedITAT Mumbai24 Jul 2024AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mr. Subhash Shetty

Section 143(3)Section 153C

nature of the not in the nature of the ‘incriminating material’ found during the course of the search. found during the course of the search. Further, neither Further, neither the Assessing officer of searched person has recorded any the Assessing officer of searched person has recorded any the Assessing officer

DCIT CC 4 (4), Mumbai vs. Sanman Trade Impex Limited, Mumbai

In the result, appeals of the Revenue are dismissed dismissed whereas appeals of the assessee are partly allowed appeals of the assessee are partly allowed

ITA 3606/MUM/2023[2014-15]Status: DisposedITAT Mumbai24 Jul 2024AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Appellant: Dr. Kishor Dhule, CIT-DRFor Respondent: Mr. Rakesh Joshi

Section 143(3)Section 69C

pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments ... taking into jurisdiction to assess or reassess the 'total income' taking into jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search and the other material

DCIT CC 4 (4), Mumbai vs. Sanman Trade Impex Limited, Mumbai

In the result, appeals of the Revenue are dismissed dismissed whereas appeals of the assessee are partly allowed appeals of the assessee are partly allowed

ITA 3605/MUM/2023[2015-16]Status: DisposedITAT Mumbai24 Jul 2024AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Appellant: Dr. Kishor Dhule, CIT-DRFor Respondent: Mr. Rakesh Joshi

Section 143(3)Section 69C

pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments ... taking into jurisdiction to assess or reassess the 'total income' taking into jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search and the other material

DCIT CC 4(4), Mumbai vs. Sanman Trade Impex Limited, Mumbai

In the result, appeals of the Revenue are dismissed dismissed whereas appeals of the assessee are partly allowed appeals of the assessee are partly allowed

ITA 3603/MUM/2023[2016-17]Status: DisposedITAT Mumbai24 Jul 2024AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Appellant: Dr. Kishor Dhule, CIT-DRFor Respondent: Mr. Rakesh Joshi

Section 143(3)Section 69C

pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments ... taking into jurisdiction to assess or reassess the 'total income' taking into jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search and the other material

Sanman Trade Impex Limited, Mumbai vs. Assistant Commissioner of Income Tax Central Circle-4(4), Mumbai

ITA 3491/MUM/2023[2014-15]Status: DisposedITAT Mumbai24 Jul 2024AY 2014-15

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

Section 10ASection 115JSection 143(3)Section 147Section 149Section 151Section 69C

132A, the AO assumes the jurisdiction for block assessment u/s 153A, ii. all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the 'total income' taking into consideration ... incriminating material unearthed during the search and the other material available with the AO including the incоте declared in the returns and, in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments

Sanman Trade Impex Limited, Mumbai vs. Assistant Commissioner of Income Tax-Central Circle 4(4), Mumbai

In the result, appeals of the Revenue are dismissed dismissed whereas appeals of the assessee are partly allowed appeals of the assessee are partly allowed

ITA 3474/MUM/2023[2015-16]Status: DisposedITAT Mumbai24 Jul 2024AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Appellant: Dr. Kishor Dhule, CIT-DRFor Respondent: Mr. Rakesh Joshi

Section 143(3)Section 69C

pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments ... taking into jurisdiction to assess or reassess the 'total income' taking into jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search and the other material

Sanman Trade Impex Limited, Mumbai vs. Assistant Commissioner of Income Tax- Central Circle 4(4), Mumbai

In the result, appeals of the Revenue are dismissed dismissed whereas appeals of the assessee are partly allowed appeals of the assessee are partly allowed

ITA 3470/MUM/2023[2021-22]Status: DisposedITAT Mumbai24 Jul 2024AY 2021-22

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Appellant: Dr. Kishor Dhule, CIT-DRFor Respondent: Mr. Rakesh Joshi

Section 143(3)Section 69C

pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, all pending assessments/ reassessments shall stand abated, iii. in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, eve in case any incriminating material is found/unearthed, even, In case of unabated/completed assessments ... taking into jurisdiction to assess or reassess the 'total income' taking into jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search consideration the incriminating material unearthed during the search and the other material

Deputy Commissioner of Income Tax Central Circle 16, Delhi vs. Umrao Hotels and Resorts Private Limited, Delhi

In the result, assessee’s appeal is allowed and the appeal preferred by the Revenue is dismissed

ITA 3045/DEL/2023[2018-19]Status: DisposedITAT Delhi24 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. Nos. 2867 /Del/2023 (Assessment Year : 2018-19) Umrao Hotels & Resorts Vs. Acit Pvt. Ltd., The Umrao, Nh- Central Circle – 16 48, Vill Samalkha, Near Delhi Rajori Crossing, New Delhi – 110037 Pan: Aaacu 6777 D (Appellant) .. (Respondent) & I.T.A. Nos. 3045/Del/2023 (Assessment Year : 2018-19) Dcit Vs. Umrao Hotels & Resorts Central Circle – 16 Pvt. Ltd., The Umrao, Nh- Delhi-110055 48, Vill Samalkha, Near Rajori Crossing, New Delhi - 110037 Pan: Aaacu 6777 D

For Appellant: Shri S. C. Garg, C.AFor Respondent: Shri T. James Singson, CIT-D.R

Section 132Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153CSection 250

proceedings or assumption of jurisdiction is concerned. 49. That takes us to the principal question and which pertains to the nature of the incriminating material that may be obtained and the years forming part of the block which would merit being thrown open Regard must be had to the fact ... years which are mentioned in that provision, the same alone would not be sufficient to justify steps in that direction being taken, unless the incriminating material so found is likely to have an impact on the total income of a particular AY forming part of the six AYs' immediately preceding

Umrao Hotels and Resorts Pvt. Ltd., Delhi vs. ACIT, Central Circle-16, Delhi

In the result, assessee’s appeal is allowed and the appeal preferred by the Revenue is dismissed

ITA 2867/DEL/2023[2018-19]Status: DisposedITAT Delhi24 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. Nos. 2867 /Del/2023 (Assessment Year : 2018-19) Umrao Hotels & Resorts Vs. Acit Pvt. Ltd., The Umrao, Nh- Central Circle – 16 48, Vill Samalkha, Near Delhi Rajori Crossing, New Delhi – 110037 Pan: Aaacu 6777 D (Appellant) .. (Respondent) & I.T.A. Nos. 3045/Del/2023 (Assessment Year : 2018-19) Dcit Vs. Umrao Hotels & Resorts Central Circle – 16 Pvt. Ltd., The Umrao, Nh- Delhi-110055 48, Vill Samalkha, Near Rajori Crossing, New Delhi - 110037 Pan: Aaacu 6777 D

For Appellant: Shri S. C. Garg, C.AFor Respondent: Shri T. James Singson, CIT-D.R

Section 132Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153CSection 250

proceedings or assumption of jurisdiction is concerned. 49. That takes us to the principal question and which pertains to the nature of the incriminating material that may be obtained and the years forming part of the block which would merit being thrown open Regard must be had to the fact ... years which are mentioned in that provision, the same alone would not be sufficient to justify steps in that direction being taken, unless the incriminating material so found is likely to have an impact on the total income of a particular AY forming part of the six AYs' immediately preceding

ACIT, Central Circle, Meerut vs. Mohd. Zahid Siddiqui, New Delhi

In the result, Appeal filed by the Revenue is dismissed

ITA 25/DEL/2023[2019-20]Status: DisposedITAT Delhi24 Jul 2024AY 2019-20

Bench: Sh. Pradip Kumar Kedia & Shri Yogesh Kumar U.S.I.T.A. No. 25/Del/2023 (A.Y 2019-20) Acit Mohd. Zahid Siddiqui 3Rd Floor, Income Tax Vs. 246, Lane No. 4, Haiderpur Office, Opposite Bainsali Road, Shalimar Bagh, Ground, Meerut, New Delhi Uttar Pradesh Pan No. Abopz6005F (Appellant) (Respondent) Assessee By : Sh. Vaibhav Goel, Ca Department By: Sh. Anshul, Sr. Dr Date Of Hearing 04.07.2024 Date Of Pronouncement 24.07.2024

For Appellant: Sh. Vaibhav Goel, CAFor Respondent: Sh. Anshul, Sr. DR

Section 127Section 142(1)Section 153ASection 153CSection 68Section 69A

protective addition of Rs. 15,24,50,000/- is concerned, the Ld. Counsel submitted that the said addition is not emanating from any incriminating material, thus, submitted that the Ld. CIT(A) has rightly deleted the addition, therefore, by supporting the order of the Ld. CIT(A), sought for dismissal ... made u/s 68 of the Act, it is not in dispute that the said addition is not emanating from any incriminating material, therefore, the addition has been deleted by the Ld. CIT(A). Considering the settled position of law on the point in the case of PCIT Vs. Abhisar Buildwell

Gipskarton India Private Limited, New Delhi vs. ACIT, Central Circle-7, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1475/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Jul 2024AY 2021-22

Bench: Shri Saktijit Dey & Shri Naveen Chandra

For Appellant: Ms. Rano Jain, AdvFor Respondent: Shri T James Singson, CIT-DR

Section 132(4)Section 69A

recorded to corroborate the transaction. vi) The addition made is only on assumption without bringing any corroborative evidence on record. vii) There is no incriminating material found on record other than the statement of the director of the assessee. 17. We note that the entire edifice of the assessee arguments ... Revenue has discharged its onus of unearthing an evidence in the form of whatsapp chat and has confronted the assessee company with the incriminating material gathered. The onus now lay with the assessee company to prove the statement of the Director of the assessee company as wrong or incorrect. There

DCIT, Central Circle-1, Gurgaon vs. K.S.Chawla & Sons (HUF), New Delhi

In the result, the appeal preferred by the Revenue is found to be devoid of any merit and thus dismissed and the C

ITA 6974/DEL/2018[2013-14]Status: DisposedITAT Delhi24 Jul 2024AY 2013-14

Bench: Shri G. S. Pannu & Ms. Madhumita Royi.T.A. No. 6974/Del/2018 (Assessment Year : 2013-14) Acit Vs. K. S. Chawla & Sons (Huf) 7Th Floor, Hsiidc Building, Central Circle – I, Gurugram Udyog Vihar, Phase-5, Gurugram Pan: Aadhk 7622 M

For Appellant: Shri Parikshi Aggarwal, C.AFor Respondent: Ms. Rishpal Bedi, CIT-D.R

Section 132Section 132(4)Section 148Section 153ASection 250

that the same can not be treated as income of the applicant.” CO No.15/Del/2019 Charan Singh Apart from that, the addition de hors any incrimination material during search has also placed by the assessee before the First Appellate Authority. It was pleaded that search can be conducted only ... basis of the material found during the course of search and addition could be made on such undisclosed income. In this particular case, no incriminating material was found except for Spaze group amounting to Rs.2 cr. spent on furnishing the said Farm House in search proceeding. As in the absence