Whether addition can be made in a search assessment u/s 153A which is not pending?

Last updated: 24 June 2014

Court :
ITAT Delhi

Brief :
A search and seizure operation u/s 132 of the Income-tax Act, 1961 was carried out on 31.07.2008. Assessee filed returns pursuant to notice u/s 153A for the year under consideration declaring long term capital loss of ` 5,87,272/- on sale of flat. Assessee claimed that the property was inherited by him from his father and was originally purchased for sum of 14,32,674/- which was subsequently sold by the assessee for a sum of 9,90,050/- resulting into capital loss. In the absence of any Conveyance deed, etc. filed, the AO noticed that the plot was sold prior to 15.06.2002 and held that the whole matter was a story made up by the assessee to introduce his own unaccounted funds as sale of the property. This led to an addition u/s 68 of the Act. Relying on the judgment of All Cargo Global Logistics 137 ITD 287 (SB) (Mum) &Pratibha Industries 141 ITD 151 (Mum), it is held that no addition can be made for any assessment year u/s 153A, the assessment for which is not pending on the date of search, unless any incriminating material is found in the course of search.

Citation :
Sanjay Aggarwal – Appellant – Versus – DCIT - Respondent