THE issue before the court is - Whether additions can be made in relation to a particular AY without having any incriminating materials qua that AY. NO is the answer.
Facts of the case
The High Court decided the additions are not valid as Revenue failed to bring out incriminating material qua each of the Assessment Years in question and additions would be justified only if such material is available separately for each year. The Court also categorically stated that in terms of Section 153A Revenue can re-open at least six years of assessments earlier to the year of search only if incriminating material was found during the course of search in respect of the issue. After undertaking detailed discussions on the Kabul Chawlal case and Dayawanti Gupta case the Court held that the invocation of Section 153A by the Revenue for the AYs 2000-01 to 2003-04 was without any legal basis as there was no incriminating material qua each of those AYs