Whether addition can be made on the basis of confidential information submitted before Settlement Commission without incriminating material found in search and seizure to support addition

Last updated: 21 March 2022
Quick Summary
This ruling clarifies that information provided confidentially to the Settlement Commission cannot be used as the sole basis for making tax additions. The Assessing Officer must possess actual incriminating material discovered during search and seizure operations to substantiate any such additions. Simply relying on disclosures made during settlement proceedings, especially if the application was rejected due to lack of conclusive proof, is insufficient.

Court :
Jaipur Tribunal

Brief :
It is clear that confidential information submitted before Settlement Commission cannot be basis of addition in the assessment proceedings. The AO must have with him some incriminating materials in hand to substantiate addition made on the basis of information before the Settlement Commission during search and seizure process.

Citation :
ACIT v. Renu Sehgal (Smt.) (2019) 75 ITR 178 (Jaipur)(Tribunal)

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