AO have power to interfere with a completed assessment in the absence of incriminating seized material?

Last updated: 11 August 2021

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This Income Tax Appellate Tribunal case concerns whether an Assessing Officer (AO) can interfere with a completed tax assessment under Section 153A of the Income Tax Act, 1961, when no incriminating material was found during search proceedings. The Tribunal upheld the CIT(A)'s decision to delete the addition made by the AO, agreeing that the AO's power under Section 153A is not unrestricted and requires incriminating material in such circumstances.

Court :
ITAT Delhi

Brief :
This appeal by the Revenue is preferred against the order of the CIT(A) - 23, New Delhi dated 28.02.2018 pertaining to A.Y 2012-13.

Citation :
ITA No. 3160/DEL/2018

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘A’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI K.N. CHARY, JUDICIAL MEMBER
ITA No. 3160/DEL/2018
[A.Y 2012-13]

The A.C.I.T

Central Circle - 4 54,

[Appellant]

Vs.

Shri Anand Persad Jaiswal

Ring Road, Lajpat Nagar -III
New Delhi

PAN: ADRP 2549 M

[Respondent]

Assessee by : Shri Pradeep Chand, CA
Revenue by : Shri Satpal Gulati, CIT-DR
Date of Hearing : 27.07.2021
Date of Pronouncement : 27.07.2021
ORDER

This appeal by the Revenue is preferred against the order of the CIT(A) - 23, New Delhi dated 28.02.2018 pertaining to A.Y 2012-13.

2. On the facts and in the circumstances of the case, the Id.CIT(A) erred in deleting the addition made under section 153A of the Income Tax Act, 1961 by holding that the assessing officer had no power to interfere with a completed assessment in the absence of incriminating seized material, when there is no such restriction placed on the power of the assessing officer under section 153A of the Income-Tax Act, 1961.

3. Before us, the ld. DR fairly conceded that qua the addition, no incriminating material was found during the course of search proceedings.

4. In the result the appeal of the Revenue in ITA No. 3160/DEL/2018 is dismissed.

The order is pronounced in the open court in the presence of both the rival representative on 27.07.2021.

Please find attached the enclosed file for the full judgement

FAQ :

No, the Tribunal ruled that in the absence of incriminating seized material, the Assessing Officer does not have the power to interfere with a completed assessment under Section 153A of the Income Tax Act, 1961.

Section 153A deals with the power of the Assessing Officer to make assessments in case of search or requisition, allowing for assessments or reassessments in respect of the relevant assessment years.

The main issue was whether the Assessing Officer had the authority to interfere with a completed assessment in the absence of incriminating seized material, as per Section 153A.

No, the Revenue's representative fairly conceded that no incriminating material was found during the search proceedings.

The appeal filed by the Revenue was dismissed by the Income Tax Appellate Tribunal.

Attached File : 1442821_4139_1627553354_3160_anand_pershad_jaiswal_.pdf

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Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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