ITAT Dismisses Revenue’s Appeals in Absence of Incriminating Material in Unabated Assessments, Upholds Deletion of S.68 Additions of ₹ 2.71 Cr [Read Order]
ITAT held that no additions can be made in unabated assessments without any incriminating Material and upheld the CIT(A) Deletion of ₹2.71 Cr s.68 Additions
![ITAT Dismisses Revenue’s Appeals in Absence of Incriminating Material in Unabated Assessments, Upholds Deletion of S.68 Additions of ₹ 2.71 Cr [Read Order]](https://images.taxscan.in/h-upload/2025/08/15/2076875-itat-directs-ao-itat-taxscan-3.webp "ITAT Dismisses Revenue’s Appeals in Absence of Incriminating Material in Unabated Assessments, Upholds Deletion of S.68 Additions of ₹ 2.71 Cr [Read Order]")
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the Revenue’s appeals for three assessment years and held that in the absence of any incriminating material found during the search, no additions can be made in unabated assessments under section 153A of the Income Tax Act, 1961. The assessee-respondent, Uniglobal Papers Pvt. Ltd., had filed...
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the Revenue’s appeals for three assessment years and held that in the absence of any incriminating material found during the search, no additions can be made in unabated assessments under section 153A of the Income Tax Act, 1961.
The assessee-respondent, Uniglobal Papers Pvt. Ltd., had filed returns under Section 139(1) for the Assessment Year (AY) 2011-2012, declaring a loss of ₹3,15,69,270.
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A search under section 132 was conducted on the Uniglobal Group, of which the assessee was a related entity. On the date of search, there were no pending proceedings and the time limit for issuing notice under section 143(2) had expired, making the assessments “unabated” as per section 153A.
The Assessing Officer (AO) made additions of ₹2,71,00,000 under section 68 in respect of share application money based on post-search enquiries and statements, without referring to any incriminating material seized during the search.
On appeal, the Commissioner of Income Tax (Appeals) ( CIT(A) ) deleted the additions both on legal grounds and on merits, holding that the additions were not based on search material and therefore impermissible in an unabated assessment, and the assessee had proved the necessary ingredients under section 68.
The bench comprising Pradip Kumar Choubey (Judicial Member) and Rajesh Kumar (Accountant Member) agreed with the CIT(A)’s findings and relied on the Supreme Court’s ruling in Pr. CIT v. Abhiser Buildwell (2023), where the court reiterated that in non-abated/completed assessments under section 153A, no addition can be made without incriminating material found during a search.
Since the issues in the other two appeals for AYs 2012–13 and 2013–14 were similar, the decision would apply mutatis mutandis.
Accordingly, all the appeals of the Revenue and the cross objections of the assessee were dismissed.
The assessee was represented by S. Jhajharia, while Sanjay Mukherjee represented the revenue.
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