During the course of search operation, no incriminating material relating to the two years under consideration was found. The materials used by the Assessing Officer were admittedly certain statements taken during the course of survey operations and subsequent thereto, but prior to the search operations. Accordingly, the additions made by the Assessing Officer for both years were not based upon any incriminating material found during the course of search operations. Since both years fell under the category of “unabated assessment years”, the Assessing Officer could not have made additions in the absence of any incriminating material relating to these years in the assessment completed under section 153A of the Act, since no incriminating material relating to these years was found during the course of search.(AY.2010-11, 2012-13)
Arshiya Ltd. v Dy. CIT (2023)106 ITR 106 (SN) (Mum) (Trib)
S. 153A: Assessment-Search-Assessment completed or in respect of which time for issue of notice has expired-Assessment does not abate-No incriminating material is found-Statements taken during survey prior to search operations cannot be used as evidence-Additions is not sustainable. [S. 132, 133A, 143(2)]