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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
3,235
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
2,379
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
1,589
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
1,226
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
907
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
786
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
689
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
670
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

Dinesh Shah (HUF), Mumbai vs. DCIT Central Circle -3(4), Mumbai

In the result, all four appeals of the assessee are allowed

ITA 1150/MUM/2020[2010-11]Status: DisposedITAT Mumbai13 Mar 2024AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11 & Assessment Year: 2011-12 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Dinesh Shah (Huf), Dy. Cit, Central Circle-3(4), Flat No. 434, Shabri Shikhar, Mumbai. Vs. R.C. Marg, Chembur (W), Mumbai-400071. Pan No. Aadhs 0544 N Appellant Respondent Assessee By : Mr. Rasesh Shah : Ms. Sanyogita Nagpal, Cit-Dr Revenue By Date Of Hearing : 15/02/2024 Date Of Pronouncement : 13/03/2024 Order

For Appellant: Mr. Rasesh Shah
Section 143(3)Section 153CSection 68

taxmann.com 290 (SC) Society [2017] 84 taxmann.com 290 (SC) held that for invoking held that for invoking section 153C of the Act the incriminating material section 153C of the Act the incriminating material should should pertain to assessment years in question whereas in the instant case the assessment years ... question whereas in the instant case the assessment years in question whereas in the instant case the incriminating material have not even seized during the course of the incriminating material have not even seized during the course of the incriminating material have not even seized during the course

Dinesh Shah (HUF), Mumbai vs. DCIT Central Cir-3(4), Mumbai

In the result, all four appeals of the assessee are allowed

ITA 1149/MUM/2020[2011-12]Status: DisposedITAT Mumbai13 Mar 2024AY 2011-12

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11 & Assessment Year: 2011-12 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Dinesh Shah (Huf), Dy. Cit, Central Circle-3(4), Flat No. 434, Shabri Shikhar, Mumbai. Vs. R.C. Marg, Chembur (W), Mumbai-400071. Pan No. Aadhs 0544 N Appellant Respondent Assessee By : Mr. Rasesh Shah : Ms. Sanyogita Nagpal, Cit-Dr Revenue By Date Of Hearing : 15/02/2024 Date Of Pronouncement : 13/03/2024 Order

For Appellant: Mr. Rasesh Shah
Section 143(3)Section 153CSection 68

taxmann.com 290 (SC) Society [2017] 84 taxmann.com 290 (SC) held that for invoking held that for invoking section 153C of the Act the incriminating material section 153C of the Act the incriminating material should should pertain to assessment years in question whereas in the instant case the assessment years ... question whereas in the instant case the assessment years in question whereas in the instant case the incriminating material have not even seized during the course of the incriminating material have not even seized during the course of the incriminating material have not even seized during the course

Dinesh Shah (HUF), Mumbai vs. DCIT Central Cir -3(4), Mumbai

In the result, all four appeals of the assessee are allowed

ITA 1148/MUM/2020[2012-13]Status: DisposedITAT Mumbai13 Mar 2024AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11 & Assessment Year: 2011-12 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Dinesh Shah (Huf), Dy. Cit, Central Circle-3(4), Flat No. 434, Shabri Shikhar, Mumbai. Vs. R.C. Marg, Chembur (W), Mumbai-400071. Pan No. Aadhs 0544 N Appellant Respondent Assessee By : Mr. Rasesh Shah : Ms. Sanyogita Nagpal, Cit-Dr Revenue By Date Of Hearing : 15/02/2024 Date Of Pronouncement : 13/03/2024 Order

For Appellant: Mr. Rasesh Shah
Section 143(3)Section 153CSection 68

taxmann.com 290 (SC) Society [2017] 84 taxmann.com 290 (SC) held that for invoking held that for invoking section 153C of the Act the incriminating material section 153C of the Act the incriminating material should should pertain to assessment years in question whereas in the instant case the assessment years ... question whereas in the instant case the assessment years in question whereas in the instant case the incriminating material have not even seized during the course of the incriminating material have not even seized during the course of the incriminating material have not even seized during the course

Dinesh Shah (HUF), Mumbai vs. DCIT Central Cir, Mumbai

In the result, all four appeals of the assessee are allowed

ITA 1147/MUM/2020[2013-14]Status: DisposedITAT Mumbai13 Mar 2024AY 2013-14

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11 & Assessment Year: 2011-12 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Dinesh Shah (Huf), Dy. Cit, Central Circle-3(4), Flat No. 434, Shabri Shikhar, Mumbai. Vs. R.C. Marg, Chembur (W), Mumbai-400071. Pan No. Aadhs 0544 N Appellant Respondent Assessee By : Mr. Rasesh Shah : Ms. Sanyogita Nagpal, Cit-Dr Revenue By Date Of Hearing : 15/02/2024 Date Of Pronouncement : 13/03/2024 Order

For Appellant: Mr. Rasesh Shah
Section 143(3)Section 153CSection 68

taxmann.com 290 (SC) Society [2017] 84 taxmann.com 290 (SC) held that for invoking held that for invoking section 153C of the Act the incriminating material section 153C of the Act the incriminating material should should pertain to assessment years in question whereas in the instant case the assessment years ... question whereas in the instant case the assessment years in question whereas in the instant case the incriminating material have not even seized during the course of the incriminating material have not even seized during the course of the incriminating material have not even seized during the course

Meera Gupta, Noida vs. DCIT, Circle-20(1), New Delhi

In the result, the captioned appeal of the assessee is allowed

ITA 8644/DEL/2019[2012-13]Status: DisposedITAT Delhi13 Mar 2024AY 2012-13

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Suresh Kumar Gupta, AdvFor Respondent: Sh. Subhra Jyoti Chakraborty, CIT-DR
Section 132Section 143(3)Section 153ASection 153CSection 68Section 69

Abhisar Buildwell (P) Ltd. (2023) 149 taxman.com 399 (SC). Consequently, the scope of assessment under Section 153A is restricted to the incriminating material found in the course of search in the case of the assessee. 6.1 The ld. counsel thereafter adverted to panchnama dated 12.11.2014 drawn in the case ... Lakh is also unsustainable in law being outside the scope and ambit of Section 153A in an unabated assessment owing to absence of any incriminating material discovered during the course of search in the case of the assessee. The Ld. Counsel contended that in paragraph 9 of the assessment order

Singla Builders and Promoters Limited, Chandigarh vs. Dy. Commissioner of Income, Central Circle-1 Tax, Chandigarh

In the result, appeal of the Assessee is allowed for statistical purposes

ITA 183/CHANDI/2024[2013-14]Status: DisposedITAT Chandigarh11 Mar 2024AY 2013-14

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Parikshit Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, D.R
Section 127Section 132Section 142ASection 153ASection 153BSection 69ASection 69B

erred in confirming the action of Ld. AO of passing asst. order by illegally assuming/acquiring jurisdiction u/s 153A and more-so when no incriminating material qua this year was found in search u/s 132 on assessee. 3. That on facts, circumstances and legal position of the case, Worthy

Bharath Hi-Tech Builders Pvt. Ltd., Bangalore vs. Dy. CIT, Circle-1(1)(2), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 1034/BANG/2023[2009-10]Status: DisposedITAT Bangalore11 Mar 2024AY 2009-10

Bench: Shri George George K, Vice- & Shri Laxmi Prasad Sahu

For Appellant: Sri.Inder Paul Bansal & Sri.Vivek BansalFor Respondent: Sri.Nilanjan Dey, Addl.CIT-DR
Section 147Section 148Section 151Section 153ASection 250

case, Ld. NFAC has failed to appreciate that the initiation of reassessment proceedings is also bad in law as the same is based on incriminating material found during the course of search carried out on 14-09-2010 in the case of Sh. Surendra Kumar Jain and Sh. Virendra Kumar ... reassessment proceedings are invalid on account of no approval obtained u/s.151 of the Act as mandated by law. (v) The assessment is based on incriminating material found during the search conducted on 14.09.2019 in the case of Sri. Surendra Kumar Jain and Sri.Virendra Kumar Jain. Therefore assessment ought to have

ACIT, Central Circle, Ghaziabad vs. Anand Educational Society, Ghaziabad

In the result, for statistical purposes the appeal is partly allowed

ITA 2260/DEL/2023[2016-17]Status: DisposedITAT Delhi11 Mar 2024AY 2016-17

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaacit, Vs. Anand Educational Society, Central Circle, R-2/83, Sector-2, Raj Ghaziabad Nagar, Ghaziabad (Appellant) (Respondent) Pan:Aabta0477G Assessee By : Shri Satyajeet Goel, Adv Revenue By: Mrs. Sunita Verma, Cit Dr Date Of Hearing 07/03/2024 Date Of Pronouncement 11/03/2024

For Appellant: Shri Satyajeet Goel, AdvFor Respondent: Mrs. Sunita Verma, CIT DR
Section 12ASection 132Section 143(3)Section 153ASection 68Section 69

adjudicated the aforesaid issues and granted relief to the assessee both on merits as well as on legal aspect that there is absolutely no incriminating material found during the course of search qua these additions by observing as under:- “6.3 In the ground of appeal no. (i), the appellant ... under Section 132A, the AO assumes the jurisdiction for block assessment under section 153A; ii) all pending assessments/reassessments shall stand abated; ) 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

ACIT, Circle CC 15, New Delhi vs. Alka Mendiratta, Delhi

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessees are also dismissed

ITA 1864/DEL/2021[2016-17]Status: DisposedITAT Delhi08 Mar 2024AY 2016-17

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Amit Goel, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153ASection 69

made by the AO is beyond the scope/jurisdiction of section 153A of the Act as there were no incriminating material belonging to Assessee found during the course of search on the basis of which addition is made. 4. That on the facts and circumstances of the case

ACIT, CC-15, New Delhi vs. Yash Pal Mendiratta, Delhi

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessees are also dismissed

ITA 1863/DEL/2021[2016-17]Status: DisposedITAT Delhi08 Mar 2024AY 2016-17

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Amit Goel, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153ASection 69

made by the AO is beyond the scope/jurisdiction of section 153A of the Act as there were no incriminating material belonging to Assessee found during the course of search on the basis of which addition is made. 4. That on the facts and circumstances of the case

Isoe Printpack Industries Pvt Ltd, New Delhi vs. ACIT Central Circle-06, New Delhi

In the result, all the appeals filed by the assessee are allowed

ITA 291/DEL/2021[2016-17]Status: DisposedITAT Delhi07 Mar 2024AY 2016-17

Bench: or during the hearing of these grounds.”

Section 132Section 139Section 143(1)Section 143(3)Section 153A

relief on account of unaccounted sales and thereby resulting into unaccounted profit on an estimated basis without any proper reasoning and without any supporting incriminating material found during the survey proceedings, in an arbitrary manner. 3. On the facts and in circumstances of the case ... sales on estimated basis vis-à-vis electricity consumption without appreciating that no addition can be made u/s 153A of the Act without any incriminating material found during the search proceedings. Hence, the addition must be deleted.” 3. Since the issues involved in the present Appeals are identical, the Appeals

Isoe Printpack Industries Pvt Ltd, New Delhi vs. ACIT Central Circle-06, New Delhi

In the result, all the appeals filed by the assessee are allowed

ITA 290/DEL/2021[2015-16]Status: DisposedITAT Delhi07 Mar 2024AY 2015-16

Bench: SHRI M.BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 132Section 139Section 143(1)Section 143(3)Section 153A

relief on account of unaccounted sales and thereby resulting into unaccounted profit on an estimated basis without any proper reasoning and without any supporting incriminating material found during the survey proceedings, in an arbitrary manner. 3. On the facts and in circumstances of the case ... sales on estimated basis vis-à-vis electricity consumption without appreciating that no addition can be made u/s 153A of the Act without any incriminating material found during the search proceedings. Hence, the addition must be deleted.” 3. Since the issues involved in the present Appeals are identical, the Appeals

Isoe Printpack Industries Pvt Ltd, New Delhi vs. ACIT Central Circle-06, New Delhi

In the result, all the appeals filed by the assessee are allowed

ITA 289/DEL/2021[2014-15]Status: DisposedITAT Delhi07 Mar 2024AY 2014-15

Bench: SHRI M.BALAGANESH (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 132Section 139Section 143(1)Section 143(3)Section 153A

relief on account of unaccounted sales and thereby resulting into unaccounted profit on an estimated basis without any proper reasoning and without any supporting incriminating material found during the survey proceedings, in an arbitrary manner. 3. On the facts and in circumstances of the case ... sales on estimated basis vis-à-vis electricity consumption without appreciating that no addition can be made u/s 153A of the Act without any incriminating material found during the search proceedings. Hence, the addition must be deleted.” 3. Since the issues involved in the present Appeals are identical, the Appeals

Isoe Printpack Industries Pvt Ltd, New Delhi vs. ACIT Central Circle-06, New Delhi

In the result, all the appeals filed by the assessee are allowed

ITA 285/DEL/2021[2013-14]Status: DisposedITAT Delhi07 Mar 2024AY 2013-14

Bench: or during the hearing of these grounds.”

Section 132Section 139Section 143(1)Section 143(3)Section 153A

relief on account of unaccounted sales and thereby resulting into unaccounted profit on an estimated basis without any proper reasoning and without any supporting incriminating material found during the survey proceedings, in an arbitrary manner. 3. On the facts and in circumstances of the case ... sales on estimated basis vis-à-vis electricity consumption without appreciating that no addition can be made u/s 153A of the Act without any incriminating material found during the search proceedings. Hence, the addition must be deleted.” 3. Since the issues involved in the present Appeals are identical, the Appeals

M/S Enrice Enterprises Pvt Ltd, Chennai vs. DCIT, Central Circle-3(4), Chennai

In the result, appeal filed by the assessee is allowed

ITA 1168/CHNY/2023[2019-20]Status: DisposedITAT Chennai06 Mar 2024AY 2019-20

Bench: Shri Manjunatha. G & Shri Manomohan Das

For Appellant: Shri D. Anand, AdvFor Respondent: Shri R. Clement Ramesh –
Section 132Section 271Section 271ASection 274

have seen that for levy of penalty under section 271AAB the A.O. must establish that there is undisclosed income on the basis of incriminating material and that that Penalty u/s 271AAB is leviable only on undisclosed income and not merely on an admission made by the assessee u/s.132 ... basis, based on estimated disallowances of portion of marketing expense and based on surrender of income not backed by any incriminating material and would therefore not attract penalty under section 271AAB. 13. The learned CIT(A) failed to see that in the instant case addition is made by the assessing

M/S Enria Enterprises Pvt. Ltd, Chennai vs. DCIT. Central Circle - 3(4), Chennai

In the result, appeal filed by the assessee in ITA

ITA 1167/CHNY/2023[2018-19]Status: DisposedITAT Chennai06 Mar 2024AY 2018-19

Bench: Shri Manjunatha. G & Shri Manomohan Das

For Appellant: Shri D. Anand, AdvFor Respondent: Shri R. Clement Ramesh –
Section 2Section 270Section 270ASection 270A(9)

basis, based on estimated disallowances of portion of marketing expense and based on surrender of income not backed by any incriminating material and would therefore not attract "under reporting as a consequence of misreporting" warranting levy of penalty under section (9) of section 2 70 (A). 11.The learned ... instant case addition is made by the assessing officer merely based on income surrendered by the appellant and not based on any incriminating material warranting levy of penalty. Neither the appellant nor the investigation team had any evidence as to the quantum of inflated expenditure year wise. 12. The learned

M/S Enrice Enterprises Pvt. Ltd, Chennai vs. DCIT, Central Circle-3(4), Chennai

In the result, appeal filed by the assessee in ITA

ITA 1166/CHNY/2023[2017-18]Status: DisposedITAT Chennai06 Mar 2024AY 2017-18

Bench: Shri Manjunatha. G & Shri Manomohan Das

For Appellant: Shri D. Anand, AdvFor Respondent: Shri R. Clement Ramesh –
Section 2Section 270Section 270ASection 270A(9)

basis, based on estimated disallowances of portion of marketing expense and based on surrender of income not backed by any incriminating material and would therefore not attract "under reporting as a consequence of misreporting" warranting levy of penalty under section (9) of section 2 70 (A). 11.The learned ... instant case addition is made by the assessing officer merely based on income surrendered by the appellant and not based on any incriminating material warranting levy of penalty. Neither the appellant nor the investigation team had any evidence as to the quantum of inflated expenditure year wise. 12. The learned

M/S.Enrica Enterprises Pvt Ltd, Chennai vs. DCIT, Central Circle-3(4), Chennai

In the result, appeal filed by the assessee in ITA

ITA 1165/CHNY/2023[2016-17]Status: DisposedITAT Chennai06 Mar 2024AY 2016-17

Bench: Shri Manjunatha. G & Shri Manomohan Das

Section 271Section 271(1)(C)Section 271ASection 274

basis, based on estimated disallowances of portion of marketing expense and based on surrender of income not backed by any incriminating material. It is not a case of which either the appellant or the investigation team had any evidence as to the quantum of inflated expenditure warranting levy of penalty ... instant case addition is made by the assessing officer merely based on income surrendered by the appellant and not based on any incriminating material warranting levy of penalty. Neither the appellant nor the investigation team had any evidence as to the quantum of inflated expenditure year wise. 6. The learned

M/S Enrica Enterprises Pvt Ltd, Chennai vs. DCIT, Central Circle-3(4), Chennai

In the result, appeal filed by the assessee in ITA

ITA 1164/CHNY/2023[2015-16]Status: DisposedITAT Chennai06 Mar 2024AY 2015-16

Bench: Shri Manjunatha. G & Shri Manomohan Das

Section 271Section 271(1)(C)Section 271ASection 274

basis, based on estimated disallowances of portion of marketing expense and based on surrender of income not backed by any incriminating material. It is not a case of which either the appellant or the investigation team had any evidence as to the quantum of inflated expenditure warranting levy of penalty ... instant case addition is made by the assessing officer merely based on income surrendered by the appellant and not based on any incriminating material warranting levy of penalty. Neither the appellant nor the investigation team had any evidence as to the quantum of inflated expenditure year wise. 6. The learned

Ksj Infrastructure Private Limited, Kolkata vs. Deputy Commissioner of Income Tax, Chennai

ITA 1110/CHNY/2023[2010-11]Status: DisposedITAT Chennai06 Mar 2024AY 2010-11

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकर अपील सं./Ita No.: 1110/Chny/2023 िनधा"रण वष" / Assessment Year: 2010-11 M/S. Ksj Infrastructure The Deputy Commissioner Of Pvt. Ltd., V. Income Tax, 2Nd Floor, Grant Lane, Room Central Circle -1(1), No. 218, Kolkata – 700 012. Chennai – 600 0034. [Pan:Aadcc-5913-E] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. B. Rama Krishnan, Fca & Shri. Shrenik Chordia, Ca ""यथ" क" ओर से/Respondent By : Shri. R. Clement Ramesh Kumar, Cit सुनवाई क" तारीख/Date Of Hearing : 10.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 06.03.2024 आदेश /O R D E R

For Appellant: Shri. B. Rama Krishnan, FCA and Shri. Shrenik Chordia, CAFor Respondent: Shri. R. Clement Ramesh Kumar, CIT
Section 132Section 143(3)Section 153ASection 153B(1)Section 153CSection 234BSection 68

Commissioner of Income Tax (Appeals) had erred in upholding the Assessment Order now passed u/s 153C of the Act in the absence of any incriminating material in the appellant's case where the assessment was already subjected to scrutiny assessment u/s 143(3) of the Act vide order passed ... quashed. The appellant had also challenged additions made by the Assessing Officer towards share premium u/s. 68 of the Act, in absence of any incriminating material found as a result of search, on the ground that said assessment year is abated assessment/completed assessment and in absence of any incriminating material