Published on: 27 April 2023 at 12:10 IST
Supreme Court in Para 8 said, ” For the reasons stated hereinnbelow, we are in complete agreement with the view taken by the Delhi High Court in the case of Kabul Chawla (supra) and the Gujarat High Court in the case of Saumya Construction (supra), taking the view that no addition can be made in respect of completed assessment in absence of any incriminating material.”
Supreme Court said that no additions can be made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961 in the absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132 A, in respect of completed /unabated assessments.
Supreme Court further added that block assessment under Section 153A of the Income Tax Act is linked with the search and requisition under Sections 132 and 132A, respectively. Further, the object of assessment under Section 153A is to bring under tax the undisclosed income which is found during the course of search or pursuant to search/requisition.
Therefore, the court held that the jurisdiction of AO to make assessment is confined to the incriminating material found during the course of search or requisition.