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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

E-Ally Consulting (India) Pvt Ltd., Mumbai vs. DCIT, CC-1(1), Mumbai

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 1230/MUM/2023[2013-14]Status: DisposedITAT Mumbai25 Sept 2023AY 2013-14

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Shri Jayant R. Bhatt, Ld. ARFor Respondent: Shri Biswanath Das, CIT-DR
Section 132Section 153CSection 250Section 68

failed to comment on validity of the order passed u/s 153C r.w.s. 143(3) of the Income Tax Act, 1961 in absence of any incriminating material found during search. 2. On the facts and circumstances of the Appellant's case and in law the Ld. Commissioner of Income Tax (Appeals ... failed to comment on validity of the order passed u/s 153C r.w.s. 143(3) of the Income Tax Act, 1961 in absence of any incriminating material found during search. 2. On the facts and circumstances of the Appellant's case and in law the Ld. Commissioner of Income Tax (Appeals

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1670/MUM/2023[2017-18]Status: DisposedITAT Mumbai22 Sept 2023AY 2017-18
Section 132Section 143(3)Section 153A

wholly and exclusively for the purpose of business. Before us, ld. Counsel submitted that this disallowance is not arising out of any incriminating material found during the search of assessee. In support, he has relied upon the decision of the Hon’ble Supreme Court in the case of Abhisar Buildwell ... time of search on 20/09/2017 and therefore, in 40 ITA No. 1663-1670/Mum/2023 M/s. J M Mhatre Infra Pvt. Ltd absence of any incriminating material such disallowance of expenses cannot be made in the assessment made u/s.153A. Therefore, the additional ground of foreign travel expenses is directed

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1669/MUM/2023[2016-17]Status: DisposedITAT Mumbai22 Sept 2023AY 2016-17
Section 132Section 143(3)Section 153A

wholly and exclusively for the purpose of business. Before us, ld. Counsel submitted that this disallowance is not arising out of any incriminating material found during the search of assessee. In support, he has relied upon the decision of the Hon’ble Supreme Court in the case of Abhisar Buildwell ... time of search on 20/09/2017 and therefore, in 40 ITA No. 1663-1670/Mum/2023 M/s. J M Mhatre Infra Pvt. Ltd absence of any incriminating material such disallowance of expenses cannot be made in the assessment made u/s.153A. Therefore, the additional ground of foreign travel expenses is directed

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1667/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 Sept 2023AY 2014-15
Section 132Section 143(3)Section 153A

wholly and exclusively for the purpose of business. Before us, ld. Counsel submitted that this disallowance is not arising out of any incriminating material found during the search of assessee. In support, he has relied upon the decision of the Hon’ble Supreme Court in the case of Abhisar Buildwell ... time of search on 20/09/2017 and therefore, in 40 ITA No. 1663-1670/Mum/2023 M/s. J M Mhatre Infra Pvt. Ltd absence of any incriminating material such disallowance of expenses cannot be made in the assessment made u/s.153A. Therefore, the additional ground of foreign travel expenses is directed

J M Mhatre Infra Pvt Ltd., Mumbai vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1664/MUM/2023[2013-14]Status: DisposedITAT Mumbai22 Sept 2023AY 2013-14
Section 132Section 143(3)Section 153A

wholly and exclusively for the purpose of business. Before us, ld. Counsel submitted that this disallowance is not arising out of any incriminating material found during the search of assessee. In support, he has relied upon the decision of the Hon’ble Supreme Court in the case of Abhisar Buildwell ... time of search on 20/09/2017 and therefore, in 40 ITA No. 1663-1670/Mum/2023 M/s. J M Mhatre Infra Pvt. Ltd absence of any incriminating material such disallowance of expenses cannot be made in the assessment made u/s.153A. Therefore, the additional ground of foreign travel expenses is directed

Dy Commissioner of Income Tax Central Circle-2(2), Nagpur vs. M/S Ramsons Ispat Limited, Nagpur

ITA 126/NAG/2018[2012-2013]Status: DisposedITAT Nagpur22 Sept 2023AY 2012-2013

Bench: Shri Satbeer Singh Godara & Shri Gd Padmahshali

For Appellant: Shri Mukesh Agrawal, CAFor Respondent: Shri Kailash Kanojiya, Sr.DR
Section 132(1)Section 143(1)Section 143(3)Section 153A

case. b) On the facts and circumstances of the case, the Ld.CIT(A) erred in holding that the AO has not relied upon any incriminating material found during 2 ITA.Nos.125 & 126/Nag./2018 (DCIT vs. M/s. Ramsons Ispat Limited search, whereas the entire extent of transactions in land ... this identical factual backdrop that the CIT(A) has termed both the impugned assessments as not sustainable in law in absence of any incriminating material found or seized during the course of the above stated search. We make it clear that both these cases involve “unabated” assessments u/s. 153A

Dy Commissioner of Income Tax Central Circle-2(2), Nagpur vs. M/S Ramsons Ispat Limited, Nagpur

ITA 125/NAG/2018[2011-2012]Status: DisposedITAT Nagpur22 Sept 2023AY 2011-2012

Bench: Shri Satbeer Singh Godara & Shri Gd Padmahshali

For Appellant: Shri Mukesh Agrawal, CAFor Respondent: Shri Kailash Kanojiya, Sr.DR
Section 132(1)Section 143(1)Section 143(3)Section 153A

case. b) On the facts and circumstances of the case, the Ld.CIT(A) erred in holding that the AO has not relied upon any incriminating material found during 2 ITA.Nos.125 & 126/Nag./2018 (DCIT vs. M/s. Ramsons Ispat Limited search, whereas the entire extent of transactions in land ... this identical factual backdrop that the CIT(A) has termed both the impugned assessments as not sustainable in law in absence of any incriminating material found or seized during the course of the above stated search. We make it clear that both these cases involve “unabated” assessments u/s. 153A

DCIT, Central Circle- 2, Faridabad vs. Srs Real Estate Ltd., Faridabad

In the result, the appeal of the Revenue is dismissed

ITA 3677/DEL/2018[2007-08]Status: DisposedITAT Delhi21 Sept 2023AY 2007-08

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)

For Appellant: Shri Rakesh Gupta, AdvocateFor Respondent: Shri T. James Singson, CIT DR
Section 132(1)(A)Section 139Section 143Section 143(3)Section 147Section 153(1)(b)Section 153ASection 153A(1)(b)Section 68

case the Ld. CIT(A) was right in holding that no addition can be made u/s 153A in respect of completed assessment if no incriminating material is found during search. iii) Whether there is any restriction on the power of the Assessing officer under section 153A of the Income ... confine only to the "incriminating material found during the search", even though such words or conditions are not mentioned in the section per se. iv) Whether on the facts and in the circumstances of the case the Ld. CIT(A) was correct in interpreting section 153A which starts with

ACIT, Central Circle- 15, New Delhi vs. Universal Electronics and Communications P. Ltd., New Delhi

ITA 2253/DEL/2018[2011-12]Status: DisposedITAT Delhi21 Sept 2023AY 2011-12

Bench: Shri Shamim Yahya & Shri Anubhav Sharma

Section 132Section 153ASection 53ASection 68

High Court in Commissioner of Income Tax v. Continental Warehousing Corporation (NhavaSheva) Ltd. [2015] 5 58taxmann.com76 (Bom), wherein it was held that if no incriminating material was found during the course of search, in respect of each issue, then no addition in respect of any such issue can be made ... search is a separate and distinct assessment. "It was further held in the said decision that If in relation to any assessment year, no incriminating material is found, no addition or disallowance can be made in relation to that assessment year in exercise of powers under section 153A

Raman Singh Sidhu, New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are dismissed

ITA 153/DEL/2016[2012-13]Status: DisposedITAT Delhi21 Sept 2023AY 2012-13

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Sh. Subhra J. Chakraborty, CIT-DR
Section 153ASection 54Section 69C

Assessee as additional income inspite of the fact that the Assessment for the year had not abated in terms of section 153A & no incriminating material was found in the course of search & seizure operations. 3) The ground in (2) above is a legal ground & was not raised before ... above inspite of the fact that the-assessment for the relevant year had not abated in terms of section 153A & no incriminating material was found during the course of search & seizure operations.” (A) That on the Law, facts and circumstances of the case the learned

Raman Singh Sidhu, New Delhi vs. ACIT, New Delhi

In the result, the appeals of the assessee are dismissed

ITA 152/DEL/2016[2011-12]Status: DisposedITAT Delhi21 Sept 2023AY 2011-12

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Sh. Subhra J. Chakraborty, CIT-DR
Section 153ASection 54Section 69C

Assessee as additional income inspite of the fact that the Assessment for the year had not abated in terms of section 153A & no incriminating material was found in the course of search & seizure operations. 3) The ground in (2) above is a legal ground & was not raised before ... above inspite of the fact that the-assessment for the relevant year had not abated in terms of section 153A & no incriminating material was found during the course of search & seizure operations.” (A) That on the Law, facts and circumstances of the case the learned

Smt. Jaya Mogra, Udaipur vs. DCIT, Central Circle-2, Udaipur

In the result, appeal of the assessee in ITA No

ITA 333/JODH/2019[2009-10]Status: DisposedITAT Jodhpur20 Sept 2023AY 2009-10
Section 127Section 132Section 271(1)(c)

issuance of a notice under section 153A(1)(a) can be concluded against the interest of the assessee including making additions even without any incriminating material being available against the assessee in the search under section 132 In the instant case the assessee had not disclosed the transaction of sale

DCIT, Central Circle-II, Noida vs. M G Metalloy Pvt. Ltd., Noida

In the result, the appeals filed by the Revenue are dismissed and the cross objections filed by the assessee are allowed

ITA 4464/DEL/2019[2012-13]Status: DisposedITAT Delhi19 Sept 2023AY 2012-13

Bench: SHRI SHAMIM YAHYA (Accountant Member), MS. ASTHA CHANDRA (Judicial Member)

For Appellant: Shri Pranav Yadav, AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty, CIT DR
Section 132(1)Section 153ASection 153CSection 153DSection 68

Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in law while holding that there was no incriminating material for the issuance of notice u/s 153C, without appreciating that material seized during the search operations constituted "incriminating material" for the purpose ... Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in law while holding that there was no incriminating material for the issuance of notice u/s 153C, without appreciating that while recording the satisfaction for issue of 153C the test for 'incriminating material

DCIT, Central Circle-II, Noida vs. M G Metalloy Pvt. Ltd., Noida

In the result, the appeals filed by the Revenue are dismissed and the cross objections filed by the assessee are allowed

ITA 4463/DEL/2019[2011-12]Status: DisposedITAT Delhi19 Sept 2023AY 2011-12

Bench: SHRI SHAMIM YAHYA (Accountant Member), MS. ASTHA CHANDRA (Judicial Member)

For Appellant: Shri Pranav Yadav, AdvocateFor Respondent: Shri Subhra Jyoti Chakraborty, CIT DR
Section 132(1)Section 153ASection 153CSection 153DSection 68

Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in law while holding that there was no incriminating material for the issuance of notice u/s 153C, without appreciating that material seized during the search operations constituted "incriminating material" for the purpose ... Whether on facts and circumstances of the case and in law, the Ld. CIT(A) erred in law while holding that there was no incriminating material for the issuance of notice u/s 153C, without appreciating that while recording the satisfaction for issue of 153C the test for 'incriminating material

M/S. J.K. Jewellers, Bharuch vs. The ACIT, Circle-1, Bharuch

In the result, ground No.3 raised by the Revenue, is dismissed

ITA 443/SRT/2018[2014-15]Status: DisposedITAT Surat19 Sept 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.440/Srt/2018 Assessment Year: (2014-15) (Virtual Hearing) The Acit, Circle-1, Vs. M/S. J. K. Jewellers, Bharuch. Station Road, Near Rungta School, Bharuch. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj5951F (Assessee) (Respondent) आयकर अपील सं./Ita No.443/Srt/2018 Assessment Year: (2014-15) M/S. J. K. Jewellers, Vs. The Acit, Circle-1, Station Road, Near Rungta Bharuch. School, Bharuch. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj5951F (Assessee) (Respondent)

Section 143(3)

cover up absence of labour expenses. Thus, ld Counsel also stated that assessing officer has made additions u/s 69, while not even finding any incriminating material found so as to support such notion. It has been settled position of law that in absence of incriminating material additions should ... against the application funds for Rs. 1,61,74,000/-. The assessee also argued before ld CIT(A) that A.O. has not found any incriminating material which can prove that the assessee was having any other separate source of income from which advances would have been made and also

The ACIT, Circle-1, Bharuch vs. M/S. J.K. Jewellers, Bharuch

In the result, ground No.3 raised by the Revenue, is dismissed

ITA 440/SRT/2018[2014-15]Status: DisposedITAT Surat19 Sept 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.440/Srt/2018 Assessment Year: (2014-15) (Virtual Hearing) The Acit, Circle-1, Vs. M/S. J. K. Jewellers, Bharuch. Station Road, Near Rungta School, Bharuch. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj5951F (Assessee) (Respondent) आयकर अपील सं./Ita No.443/Srt/2018 Assessment Year: (2014-15) M/S. J. K. Jewellers, Vs. The Acit, Circle-1, Station Road, Near Rungta Bharuch. School, Bharuch. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj5951F (Assessee) (Respondent)

Section 143(3)

cover up absence of labour expenses. Thus, ld Counsel also stated that assessing officer has made additions u/s 69, while not even finding any incriminating material found so as to support such notion. It has been settled position of law that in absence of incriminating material additions should ... against the application funds for Rs. 1,61,74,000/-. The assessee also argued before ld CIT(A) that A.O. has not found any incriminating material which can prove that the assessee was having any other separate source of income from which advances would have been made and also

M/S. Patel Madhavlal Maganlal & Co., Surat vs. Assistant Commissioner of Income Tax, CC-2, Surat

In the result, ground No. 2

ITA 491/SRT/2023[2018-19]Status: HeardITAT Surat18 Sept 2023AY 2018-19

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Virtual Hearing) M/S Patel Madhavlal Maganlal Assistant Commissioner Of & Co., Income Tax, Vs. 3/139, Parsi Sheri Navapura, Central Circle-2, Surat-395003. Surat. Pan: Aadfp 2740 F Appellant Respondednt Patel Natverlal Chinubhai & Co., Assistant Commissioner 5/1228, Haripura Bhavaniwad, Of Income Tax, Vs. Surat-395003 (Gujarat) Central Circle-2, Pan:Aadfp 5995 Q Surat. Appellant Respondednt

Section 147Section 254(1)

extent of Rs. 21,55,608/- by taking a view that the addition made by the assessing officer is not based on incriminating material. Page No. 1 and 2 contains the details of 32 transactions for about 15 days and total amount of Khap (transfer of cash ... which has been offered in the return of income. We find that addition made by Assessing Officer is not based on incriminating material. The addition was made on hypothetical and presumption basis. The ld. CIT(A) is also on the basis of details mentioned in Exhibit-II presumed that

Patel Natverlal Chinubhai & Co., Surat vs. Deputy Commissioner of Income Tax, CC-2, Surat

In the result, ground No. 2

ITA 447/SRT/2023[2018-19]Status: HeardITAT Surat18 Sept 2023AY 2018-19

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Virtual Hearing) M/S Patel Madhavlal Maganlal Assistant Commissioner Of & Co., Income Tax, Vs. 3/139, Parsi Sheri Navapura, Central Circle-2, Surat-395003. Surat. Pan: Aadfp 2740 F Appellant Respondednt Patel Natverlal Chinubhai & Co., Assistant Commissioner 5/1228, Haripura Bhavaniwad, Of Income Tax, Vs. Surat-395003 (Gujarat) Central Circle-2, Pan:Aadfp 5995 Q Surat. Appellant Respondednt

Section 147Section 254(1)

extent of Rs. 21,55,608/- by taking a view that the addition made by the assessing officer is not based on incriminating material. Page No. 1 and 2 contains the details of 32 transactions for about 15 days and total amount of Khap (transfer of cash ... which has been offered in the return of income. We find that addition made by Assessing Officer is not based on incriminating material. The addition was made on hypothetical and presumption basis. The ld. CIT(A) is also on the basis of details mentioned in Exhibit-II presumed that

Jt CIT (OSD), CC-3(1), Mumbai vs. Vallabhbhai Parsottambhai Surani, Surat

In the result, appeal filed by the Revenue is dismissed

ITA 498/MUM/2021[2007-08]Status: DisposedITAT Mumbai15 Sept 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon'Blejt. Commissioner Of Income Tax (Osd) V. Vallabhbhai Parsottambhai Surani Central Circle – 3(1) 1, Sundaram Bunglow Room No. 1924, 19Th Floor Lambe Hanuman Road Air India Building, Nariman Point Opp. Saiffe Society Mumbai – 400 021 Gujrat - 395006 Pan: Ajyps2262F (Appellant) (Respondent) C.O. No.164/Mum/2021 [Arising Out Of Ita No. 498/Mum/2021 (A.Y: 2007-08)] Vallabhbhai Parsottambhai Surani V. Jt. Commissioner Of Income Tax (Osd) 1, Sundaram Bunglow Central Circle – 3(1) Room No. 1924, 19Th Floor Lambe Hanuman Road Air India Building, Nariman Point Opp. Saiffe Society Mumbai – 400 021 Gujrat - 395006 Pan: Ajyps2262F (Appellant) (Respondent) Assessee Represented By : Shri Bharat Kumar Department Represented By : Dr. Mahesh Akhade

Section 132Section 139(1)Section 142Section 143(3)Section 153A

facts in not holding those additions of Rs. 32,38,00,000/-and Rs. 4,38,00,000/- were not based on any incriminating materials found during the course of search and hence bad in Law and illegal. 4. On the facts circumstance of the case ... after raising the additional grounds vide letter dated 19.09.2017. But in both these submissions, there is no denial of existence of incriminating material and in the submission dated 14.10.2014, there are clear acceptance in the written submissions with reference to transactions which are not accounted in books of accounts

Millennium Real Estate Developers Pvt. Ltd, Jalandhar vs. The Assistant Commissioner of Income Tax, Jalandhar

In the result, the appeal filed by the assessee is allowed for statistical

ITA 653/ASR/2016[2012-13]Status: DisposedITAT Amritsar13 Sept 2023AY 2012-13

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: None (Written submission)For Respondent: Sh. Hitendra Bhauraoji Ninawe, CIT DR
Section 132(1)Section 132(4)Section 14Section 14ASection 56Section 69Section 69ASection 71

Developers P. Ltd. v. Asstt. CIT the persons other than the said ShriRakesh Khanna& family were holding substantial shareholding of about 50%. 2. No incriminating material was found in respect of the this Company entity during the Search/ Seizure proceedings as is evident from the statements as recorded ... order. b) That the facts of the assessee case shows that there was no undisclosed income found during the course of search and no incriminating material was found of any undisclosed income /assets. c) That no cash, money, bullion, jewellery or other valuable articles, asset or things or any entry