For recomputing income correctly u/s 153A no incriminating material necessary and AO can make corrections after giving opportunity to the assessee.
ABCAUS Case Law Citation:
ABCAUS 2712 (2019) (01) ITAT
In this case, the assessee had filed additional ground along with petition for admission of additional ground.
The contention of the assessee for admission of the additional ground was that the assessment in his case was made u/s 153A consequent to search u/s 132 of the Income Tax Act, 1961 (‘Act’) and the addition was made not on the basis of seized material, thus, the addition made by the Assessing Officer (AO) without having the seized material was unsustainable and required to be deleted.
The Tribunal admitted the additional ground as it was purely related to the legal issue and no enquiry was required to be made.
The Tribunal noted that the AO had not made any addition and only recomputed the income correctly.
The Tribunal opined that for recomputing the income correctly no incriminating material is necessary and the AO is permitted to make the corrections during the proceedings after giving opportunity to the assessee.
Accordingly, the additional ground was dismissed.