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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

Sh. Bipan Jain, Ludhiana vs. DCIT, CC-III, Ludhiana

In the result, the ground no

ITA 354/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh23 Jan 2024AY 2013-14

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

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 10(38)Section 153A

said to be the 'incriminating evidence' as found during search. 4. That the finding of the Ld. CIT(A) about the meaning of 'incriminating material' by relying upon certain article is without any basis and substance and it has been held in various judgments of Hon'ble High Courts/ Tribunals ... that the mere statement cannot be held to be incriminating material found during search and further, the assessee concerned had never conceded during the course of search, that such claim of long term capital gain was bogus. 5. That the reliance by the Ld. CIT(A) on the statement

Sh. Ashish Jain, Ludhiana vs. DCIT, CC-III, Ludhiana

In the result, the ground no

ITA 353/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh23 Jan 2024AY 2013-14

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

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 10(38)Section 153A

said to be the 'incriminating evidence' as found during search. 4. That the finding of the Ld. CIT(A) about the meaning of 'incriminating material' by relying upon certain article is without any basis and substance and it has been held in various judgments of Hon'ble High Courts/ Tribunals ... that the mere statement cannot be held to be incriminating material found during search and further, the assessee concerned had never conceded during the course of search, that such claim of long term capital gain was bogus. 5. That the reliance by the Ld. CIT(A) on the statement

Sh. Ashish Jain, Ludhiana vs. DCIT, CC-III, Ludhiana

In the result, the ground no

ITA 352/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh23 Jan 2024AY 2012-13

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

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 10(38)Section 153A

said to be the 'incriminating evidence' as found during search. 4. That the finding of the Ld. CIT(A) about the meaning of 'incriminating material' by relying upon certain article is without any basis and substance and it has been held in various judgments of Hon'ble High Courts/ Tribunals ... that the mere statement cannot be held to be incriminating material found during search and further, the assessee concerned had never conceded during the course of search, that such claim of long term capital gain was bogus. 5. That the reliance by the Ld. CIT(A) on the statement

Sh. Akhil Jain, Ludhiana vs. DCIT, CC-III, Ludhiana

In the result, the ground no

ITA 351/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh23 Jan 2024AY 2013-14

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

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 10(38)Section 153A

said to be the 'incriminating evidence' as found during search. 4. That the finding of the Ld. CIT(A) about the meaning of 'incriminating material' by relying upon certain article is without any basis and substance and it has been held in various judgments of Hon'ble High Courts/ Tribunals ... that the mere statement cannot be held to be incriminating material found during search and further, the assessee concerned had never conceded during the course of search, that such claim of long term capital gain was bogus. 5. That the reliance by the Ld. CIT(A) on the statement

DCIT, Central Circle-14, Delhi vs. Sandhya Sharma, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1796/DEL/2023[2013-14]Status: DisposedITAT Delhi23 Jan 2024AY 2013-14

Bench: Sh. Challa Nagendra Prasaddr. B. R. R. Kumar

For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 132Section 132ASection 139Section 147Section 148Section 149Section 151Section 153Section 153ASection 153C

707/2014, decided on 28th August, 2015 has held that completed assessments could only be interfered with by the AO on the basis of any incriminating material unearthed during the course of the search or requisition of the documents. In absence of any incriminating material, the AO does not have ... seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable

DCIT Central Circle-20, Delhi vs. M Sons Gems N Jewellery Pvt. Ltd., Delhi

ITA 935/DEL/2022[2013-14]Status: DisposedITAT Delhi23 Jan 2024AY 2013-14

Bench: Sh. N. K. Billaiya & Ms Astha Chandraassessment Year: 2013-14 Dcit Vs. M Sons Gems N Jewellery Central Circle – 20 Pvt. Ltd. Delhi 1, Sarai Kale Khan, Nizamuddin East, New Delhi-110013 Pan No.Aadcm9406A (Appellant) (Respondent)

Section 68

made the addition of Rs.48781500/- as unexplained credit. 5. The addition was challenged before the CIT(A) on the ground that no incriminating material was made the basis for the impugned addition. The CIT(A) was convinced that the ratio laid down by the Hon’ble Delhi High Court ... unexplained cash credit is based upon the entries found in the books of account of the assessee and has nothing to do with any incriminating material found at the time of search. Therefore, the ratio laiddown by the Hon’ble Supreme Court in the case of Abhisar Buildwell

ACIT, Central Circle- 13, New Delhi vs. Manish Merchants Pvt. Ltd., Kolkata

The appeals of the revenue are dismissed

ITA 774/DEL/2018[2013-14]Status: DisposedITAT Delhi23 Jan 2024AY 2013-14

Bench: Sh. N. K. Billaiya & Ms Astha Chandra

Section 132Section 153CSection 68

after making addition of Rs.255010000/-. 7. The addition was challenged before the CIT(A) on the ground that it is not based on any incriminating material found at the time of search. Therefore, the initiation of proceedings u/s. 153C of the Act is bad in law. 8. Though ... deleted the addition on the ground that the same are not based upon any incriminating material found at the time of search but upheld the initiation of proceedings u/s.153C of the Act. 9. Before us the Counsel for the assessee drew our attention to the decision of this Tribunal

ACIT, Central Circle- 13, New Delhi vs. Manish Merchants Pvt. Ltd., Kolkata

The appeals of the revenue are dismissed

ITA 773/DEL/2018[2012-13]Status: DisposedITAT Delhi23 Jan 2024AY 2012-13

Bench: Sh. N. K. Billaiya & Ms Astha Chandra

Section 132Section 153CSection 68

after making addition of Rs.255010000/-. 7. The addition was challenged before the CIT(A) on the ground that it is not based on any incriminating material found at the time of search. Therefore, the initiation of proceedings u/s. 153C of the Act is bad in law. 8. Though ... deleted the addition on the ground that the same are not based upon any incriminating material found at the time of search but upheld the initiation of proceedings u/s.153C of the Act. 9. Before us the Counsel for the assessee drew our attention to the decision of this Tribunal

ACIT, Central Circle- 13, New Delhi vs. Manish Merchants Pvt. Ltd., Kolkata

The appeals of the revenue are dismissed

ITA 772/DEL/2018[2011-12]Status: DisposedITAT Delhi23 Jan 2024AY 2011-12

Bench: Sh. N. K. Billaiya & Ms Astha Chandra

Section 132Section 153CSection 68

after making addition of Rs.255010000/-. 7. The addition was challenged before the CIT(A) on the ground that it is not based on any incriminating material found at the time of search. Therefore, the initiation of proceedings u/s. 153C of the Act is bad in law. 8. Though ... deleted the addition on the ground that the same are not based upon any incriminating material found at the time of search but upheld the initiation of proceedings u/s.153C of the Act. 9. Before us the Counsel for the assessee drew our attention to the decision of this Tribunal

Focus Heights Pvt. Ltd., New Delhi vs. ACIT, New Delhi

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

ITA 5539/DEL/2016[2009-10]Status: DisposedITAT Delhi23 Jan 2024AY 2009-10

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia[Assessment Year : 2009-10] Focus Heights Pvt.Ltd., Vs Acit, (Formerly Known As Mirage Homes Cc-17(Old), Pvt.Ltd.), H.No.F-12, Ground Floor, Cc-15(New), Khasra No.570, Chhatarpur Jhandewalan, Extension, Pole No.1106, New Delhi. New Delhi-110074. Pan-Aadcm1678C Appellant Respondent Appellant By Shri Vikas Jain, Adv., Ms. Shrawani, Adv. & Shri Mohammad Imran Ahmed, Adv. Respondent By Shri Vivek Kumar Upadhyay, Sr.Dr Date Of Hearing 15.01.2024 Date Of Pronouncement 23.01.2024 Order Per Kul Bharat, Jm The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By Ld.Cit(A)-Xxvi, New Delhi Dated 30.08.2016 For The Assessment Year 2009-10. The Assessee Has Raised Following Grounds Of Appeal:-

Section 142(1)Section 143(2)Section 143(3)Section 153

facts and circumstances of the case and the provisions of law, the Ld. CIT Appeals has failed to appreciate that there being no incriminating material found during the search, the additions made and sustained are bad in law and without jurisdiction. 5. That on the facts and circumstances

Poonam Promoters and Developers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 4785/DEL/2015[2005-06]Status: DisposedITAT Delhi23 Jan 2024AY 2005-06

Bench: Sh. N. K. Billaiya & Ms Astha Chandraassessment Year: 2005-06 Poonam Promoters & Vs. Acit Developers Pvt. Ltd. M-11, Central Circle- 32 Middle Circle, Connaught E-2, Ara Centre, Circus, New Delhi-110001 Jhandewalan Extension, Pan No.Aaacp6882G New Delhi-110055 (Appellant) (Respondent) Appellant By Sh. Piyush Kaushik, Advocate Sh. Ajay Bhagwani, Ca Respondent By Sh. Subhra Jyoti Chakraborty, Cit Dr Date Of Hearing: 23/01/2024 Date Of Pronouncement: 23/01/2024 Order Per N. K. Billaiya, Am: This Appeal By The Assessee Is Preferred Against The Order Of The Cit(A)-30, New Delhi Dated 27.03.2015 Pertaining To A.Y. 2005-06. 2. The Grievance Of The Assessee Read As Under :- “1. That The Orders Passed By The Assessing Officer & Commissioner Of Income Tax (Appeals)-Xxx, New Delhi Are Bad In Law & Void Ab Initio.

Section 1Section 132Section 148Section 153Section 153ASection 153A(1)

under :- “7. We have heard both the parties and perused the material available on U record. It is pertinent to note that no incriminating material was found during the search and seizure in respect of assessee company, hence the decision of the Delhi High Court in case of Kabul Chawla ... seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable

ACIT, CC-14, Delhi vs. Lakshya Consultants Pvt. Ltd., New Delhi

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

ITA 181/DEL/2021[2005-06]Status: HeardITAT Delhi22 Jan 2024AY 2005-06

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar U.S

For Appellant: Shri Lalit Mohan, CAFor Respondent: Shri Subhra Jyoti Chakraborty, CIT- DR
Section 153ASection 253Section 5

solitary grievance of the Revenue is that the ld. CIT(A) erred in law and on facts in holding that as no incriminating material pertaining to the A.Y under consideration has been found during the search, the Assessing Officer could not have proceeded to frame assessment u/s 153A ... income from unexplained sources]” 13. A perusal of the above clearly shows that there is not even a whisper of any incriminating material found at the time of search. Therefore, the ratio laid down by the Hon'ble High Court of Delhi in the case of Kabul Chawla

ACIT, Central Circle-2, Madurai vs. Vibgyor Net Connections, Karnataka

In the result, appeal filed by the Revenue is dismissed

ITA 631/CHNY/2023[2016-17]Status: DisposedITAT Chennai19 Jan 2024AY 2016-17

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha.G, Hon’Bleआयकर अपील सं./Ita No.631/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17 & Cross-Objection No.29/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17

For Respondent: Shri. Nilay Baran Som, CIT
Section 132Section 69A

correctly inferred that the payment is related to property transaction between assessee and M/s.Polisettv_Somasundaram. 2.3 The Id.CIT(A) erred in observing that the incriminating material found during the course of search in the case of M/s.Polisettysundaram is a "dumb document" and cannot be relied on without corroborative evidence, without appreciating ... notings regarding cash of Rs.51,53,55,000/- sent to Bangalore on 31.12.2015 and the corresponding expenses incurred towards cash carrying charges. No further incriminating material was found during the course of search in the case of the assessee nor in the case of search of M/s.Polisetty Somasundaram with regard

ACIT, Centrl Circle, Ghaziabad vs. Anu Bajaj, Ghaziabad

In the result, the appeal of the revenue is dismissed and the Cross Objection of the assessee is dismissed

ITA 1943/DEL/2023[2018-19]Status: DisposedITAT Delhi19 Jan 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri M. Balaganeshacit, Vs. Anu Bajaj, Central Circle, House No. 21, Ghaziabad Sector-5, Raj Kumar, Ghaziabad (Appellant) (Respondent) Pan: Aekpb5893G Co No. 83/Del/2023 (In Ita No. 1943/Del/2023) (Assessment Year: 2018-19) Anu Bajaj, Vs. Acit, House No. 21, Central Circle, Sector-5, Raj Kumar, Ghaziabad Ghaziabad (Appellant) (Respondent) Pan: Aekpb5893G Assessee By : Shri Somil Agarwal, Adv Shri Deepesh Garg, Adv Shri Shrey Jain, Adv Revenue By: Shri Zafarul Haque Tanweer, Cit Dr Date Of Hearing 17/01/2024 Date Of Pronouncement 19/01/2024

For Appellant: Shri Somil Agarwal, AdvFor Respondent: Shri Zafarul Haque Tanweer, CIT DR
Section 127Section 132Section 142(1)Section 143(2)Section 143(3)Section 153ASection 68

books of accounts. However the Ld. AO in total disregard of the documentary evidence of the said transactions and there being no incriminating material found during the course of search proceedings to disbelieve the uncontroverted fact of the transactions recorded in the books; went wrong in treating the date

Uk Paints (Overseas) Ltd, New Delhi vs. ACIT Central Circle-08, New Delhi

In the result, the appeals of the assessee are allowed

ITA 678/DEL/2020[2011-12]Status: DisposedITAT Delhi19 Jan 2024AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 132Section 133ASection 153ASection 153CSection 292C

erred in holding that AO has legally and validly assumed jurisdiction u/s 153C of the Income Tax Act in absence of any incriminating material found during the search on Mr. K. S. Dhingra and Mr. G. S. Dhingra on 16.09.2011. 4) That the Ld. CIT(A) erred ... Court vide order dated 25.04.2023 in the case of DCIT vs. UK Paints Overseas Ltd. held that as under:- “………As observed hereinabove, as no incriminating material was found in case of any of the Assessees either from the Assessee or from the third party and the assessments were under Section

Uk Paints (Overseas) Ltd, New Delhi vs. ACIT Central Circle-08, New Delhi

In the result, the appeals of the assessee are allowed

ITA 677/DEL/2020[2010-11]Status: DisposedITAT Delhi19 Jan 2024AY 2010-11

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 132Section 133ASection 153ASection 153CSection 292C

erred in holding that AO has legally and validly assumed jurisdiction u/s 153C of the Income Tax Act in absence of any incriminating material found during the search on Mr. K. S. Dhingra and Mr. G. S. Dhingra on 16.09.2011. 4) That the Ld. CIT(A) erred ... Court vide order dated 25.04.2023 in the case of DCIT vs. UK Paints Overseas Ltd. held that as under:- “………As observed hereinabove, as no incriminating material was found in case of any of the Assessees either from the Assessee or from the third party and the assessments were under Section

Uk Paints (Overseas) Ltd, New Delhi vs. ACIT Central Circle-08, New Delhi

In the result, the appeals of the assessee are allowed

ITA 676/DEL/2020[2009-10]Status: DisposedITAT Delhi19 Jan 2024AY 2009-10

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 132Section 133ASection 153ASection 153CSection 292C

erred in holding that AO has legally and validly assumed jurisdiction u/s 153C of the Income Tax Act in absence of any incriminating material found during the search on Mr. K. S. Dhingra and Mr. G. S. Dhingra on 16.09.2011. 4) That the Ld. CIT(A) erred ... Court vide order dated 25.04.2023 in the case of DCIT vs. UK Paints Overseas Ltd. held that as under:- “………As observed hereinabove, as no incriminating material was found in case of any of the Assessees either from the Assessee or from the third party and the assessments were under Section

Uk Paints (Overseas) Ltd, New Delhi vs. ACIT Central Circle-08, New Delhi

In the result, the appeals of the assessee are allowed

ITA 675/DEL/2020[2008-09]Status: DisposedITAT Delhi19 Jan 2024AY 2008-09

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 132Section 133ASection 153ASection 153CSection 292C

erred in holding that AO has legally and validly assumed jurisdiction u/s 153C of the Income Tax Act in absence of any incriminating material found during the search on Mr. K. S. Dhingra and Mr. G. S. Dhingra on 16.09.2011. 4) That the Ld. CIT(A) erred ... Court vide order dated 25.04.2023 in the case of DCIT vs. UK Paints Overseas Ltd. held that as under:- “………As observed hereinabove, as no incriminating material was found in case of any of the Assessees either from the Assessee or from the third party and the assessments were under Section

DCIT Central Circle-08, New Delhi vs. Uk Paints (Overseas) Ltd, New Delhi

In the result, the Cross Objections of the assessee are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 1045/DEL/2020[2012-13]Status: DisposedITAT Delhi19 Jan 2024AY 2012-13

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153CSection 6(3)Section 6(3)(ii)

where the assessment/s for the year/s subsequent to the year of the search would have to made u/s 153C (where there would be not incriminating material) and some of the six assessment years prior to the year of the search would be left out, thereby frustrating the scheme of assessment ... 707/2014, decided on 28th August, 2015 has held that completed assessments could only be interfered with by the AO on the basis of any incriminating material unearthed during the course of the search or requisition of the documents. In absence of any incriminating material, the AO does not have

DCIT, Central Circle-8, New Delhi vs. Uk Paints (Overseas) Ltd, New Delhi

In the result, the Cross Objections of the assessee are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 1044/DEL/2020[2007-08]Status: DisposedITAT Delhi19 Jan 2024AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Pradeep Dinodia, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153CSection 6(3)Section 6(3)(ii)

where the assessment/s for the year/s subsequent to the year of the search would have to made u/s 153C (where there would be not incriminating material) and some of the six assessment years prior to the year of the search would be left out, thereby frustrating the scheme of assessment ... 707/2014, decided on 28th August, 2015 has held that completed assessments could only be interfered with by the AO on the basis of any incriminating material unearthed during the course of the search or requisition of the documents. In absence of any incriminating material, the AO does not have