Section 153A — Assessment in Case of Search or Requisition
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Live but with a closed window of application. Inserted by the Finance Act, 2003 (w.e.f. 1 June 2003). Where a search is initiated under section 132 or a requisition is made under section 132A on or after 1 June 2003 but before 1 April 2021, the AO must issue notice and assess or reassess the total income of six assessment years (and, in specified high-value cases, the 'relevant assessment year(s)' in the extended block up to ten years) preceding the year of search; assessments pending on the date of search abate.
FA 2026: No amendment by the Finance Act, 2026. Section 153A does not apply to searches initiated on or after 1 April 2021 — for which the reassessment regime (sections 147-151) applies; for searches initiated on or after 1 September 2024 the new block-assessment scheme in Chapter XIV-B (sections 158B onwards, reintroduced by the Finance Act, 2025) applies.
Window: Searches/requisitions from 1 June 2003 to 31 March 2021.
A. SECTION COMMENTARY
Section 153A is the centrepiece of the second-generation search-assessment scheme that replaced the Chapter XIV-B block-assessment regime (the original sections 158B onwards). On a search under section 132 or requisition under section 132A in the qualifying window, the AO must issue a notice requiring the person searched to furnish returns for six assessment years immediately preceding the assessment year relevant to the year of search (extended, by the fourth proviso inserted by the Finance Act, 2017, to the 'relevant assessment year(s)' up to the tenth preceding year where the escaped income, represented in the form of an asset, is or is likely to be fifty lakh rupees or more). The AO then 'assesses or reassesses' the total income of those years. The second proviso provides that any assessment or reassessment pending on the date of search 'shall abate' — so that there is a single, unified proceeding under section 153A for the pending years.
The single most important interpretive question — fiercely litigated for a decade — was whether, for the years whose assessments were already completed/unabated on the date of search, the AO could make additions de hors any incriminating material found in the search, or only on the basis of such material. The Delhi High Court in Kabul Chawla laid down that completed assessments can be interfered with under section 153A only on the basis of incriminating material unearthed in the search; the Supreme Court in Abhisar Buildwell finally affirmed that view, holding that no addition can be made for completed/unabated years in the absence of incriminating material — while preserving the Revenue's remedy to reopen such years under sections 147/148 if the conditions are met. For abated (pending) years, the AO assesses the total income at large.
B. STATUTORY POSITION (verbatim text)
Reproduced from the local Act (base text to the Finance Act, 2025), including the provisos on the extended block and abatement.
153A. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003 but on or before the 31st day of March, 2021, the Assessing Officer shall—
(a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years and for the relevant assessment year or years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139;
(b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made and for the relevant assessment year or years :
Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years and for the relevant assessment year or years :
Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years and for the relevant assessment year or years referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate :
Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso), specify the class or classes of cases in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years:
Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless—
(a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years;
(b) the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and
(c) the search under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017.
Explanation 1.—For the purposes of this sub-section, the expression "relevant assessment year" shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made.
Explanation 2.—For the purposes of the fourth proviso, "asset" shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.
(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Principal Commissioner or Commissioner:
Provided that such revival shall cease to have effect, if such order of annulment is set aside.
Explanation.—For the removal of doubts, it is hereby declared that,—
(i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section;
(ii) in an assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year.
C. AUTHORITIES
The decisive authority is Abhisar Buildwell (SC) affirming Kabul Chawla on the incriminating-material requirement.
1. Incriminating material requirement for completed/unabated years
Court: Supreme Court of India; judgment dated 24 April 2023.
Held: In respect of completed/unabated assessments, no addition can be made by the Assessing Officer under section 153A in the absence of any incriminating material found during the search under section 132 or requisition under section 132A; the AO's jurisdiction to 'assess' in such cases is confined to the incriminating material. For abated assessments (pending on the date of search), the AO can assess the total income taking into account the incriminating material and other material. The Court, however, held that the Revenue is not left remediless: in the absence of incriminating material, it may resort to reassessment under sections 147/148 if the conditions are satisfied.
Significance: The conclusive Supreme Court authority on the scope of section 153A (and 153C); it affirms the Kabul Chawla line nationally, resolving the conflict with the contrary view of some High Courts, and balances the assessee's protection with the Revenue's section 147/148 remedy.
CIT v. Kabul Chawla (2016) 380 ITR 573 (Delhi High Court)
Court: Delhi High Court.
Held: Laid down the now-affirmed propositions: assessments/reassessments pending on the date of search abate; completed assessments can be reopened under section 153A but additions for those years must be confined to, and based on, incriminating material found in the search; in the absence of such material, the completed assessment is not disturbed and only the returned/assessed income stands.
Significance: The foundational High Court statement of the incriminating-material principle, expressly approved by the Supreme Court in Abhisar Buildwell. The locus classicus on section 153A.
2. Abatement and the unified proceeding
Abatement of pending assessments — second proviso
Principle: By the second proviso to section 153A(1), any assessment or reassessment relating to the six (or extended) assessment years that is pending on the date of initiation of the search/requisition abates; the pending proceeding merges into the single section 153A assessment, in which (for the abated years) the AO assesses the total income. Only completed/unabated assessments enjoy the incriminating-material protection.
Cognate authority: Followed in a large body of High Court authority (e.g. CIT v. Continental Warehousing Corporation (Bombay HC) and CIT v. Anil Kumar Bhatia (Delhi HC)); the abated/unabated distinction is now settled by Abhisar Buildwell.
3. The incriminating-material line in the High Courts
Held: Where an assessment has attained finality before the date of search (unabated assessment), the Assessing Officer, while passing the section 153A read with section 143(3) order, cannot disturb it unless incriminating material gathered in the search shows otherwise; only proceedings pending on the date of search abate. Additions de hors incriminating material are impermissible for completed years.
Significance: The Bombay High Court's adoption of the incriminating-material requirement, parallel to Kabul Chawla; later affirmed by the Supreme Court in Abhisar Buildwell.
CIT v. Anil Kumar Bhatia (2012) 352 ITR 493 (Delhi)
Held: Section 153A is triggered by the search and the AO is to assess the total income of the six years; the provision applies even where assessments are completed and even if returns were processed under section 143(1). The Court, however, expressly left open the situation where no incriminating material is found for a completed year — the question later settled by Kabul Chawla and Abhisar Buildwell.
Significance: An early and much-cited decision on the mechanics of section 153A; read in the light of the later incriminating-material rulings which resolved the question it left open.
Pr. CIT v. Meeta Gutgutia (2017) 395 ITR 526 (Delhi) — SLP dismissed
Held: Completed assessments can be reopened/interfered with under section 153A only on the basis of incriminating material found during the search; absent such material, the invocation of section 153A for a concluded year is unjustified. The Revenue's Special Leave Petition was dismissed by the Supreme Court.
Significance: A leading Delhi High Court authority (with the SLP dismissal) firmly applying the incriminating-material requirement; squarely in line with Abhisar Buildwell.
4. Unabated years, statements and the evidentiary base
Pr. CIT v. Saumya Construction (P) Ltd. (2016) 387 ITR 529 (Gujarat)
Court: Gujarat High Court.
Held: For a completed/unabated assessment, an addition under section 153A can be made only on the basis of incriminating material found in the search; in the absence of such material the concluded assessment cannot be disturbed. The assessment under section 153A is, for such years, confined to the search material.
Significance: The Gujarat High Court's articulation of the incriminating-material requirement, parallel to Kabul Chawla and Continental Warehousing; approved in substance by Abhisar Buildwell.
Pr. CIT v. Best Infrastructure (India) (P) Ltd. (2017) 397 ITR 82 (Delhi)
Held: A statement recorded under section 132(4) during the search does not, by itself, constitute 'incriminating material' for the purpose of a section 153A addition in a completed/unabated year; there must be tangible incriminating material unearthed in the search. A retracted or bare statement, without corroborating seized material, cannot sustain the addition.
Significance: Important qualification on what counts as 'incriminating material' — a section 132(4) statement alone is not enough; relevant to the Abhisar Buildwell / Kabul Chawla framework.
Dayawanti (Smt.) v. CIT (2017) 390 ITR 496 (Delhi)
Held: Where the search yielded incriminating material — including the assessee's own admissions and the absence/discrepancy of books — additions under section 153A for the block were sustainable; block additions must rest on material found in, or relatable to, the search, but where such material exists the additions are valid (and reasonable estimation is permissible).
Significance: Illustrates the 'pro-revenue' side of the incriminating-material rule: where genuine search material exists, section 153A additions stand. (To be read with Best Infrastructure on the limited weight of a bare 132(4) statement; the decision was carried to the Supreme Court — verify current status before independent reliance.)
5. Tribunal authority — the Special Bench and the abated/unabated distinction
All Cargo Global Logistics Ltd. v. DCIT (2012) 137 ITD 287 (ITAT, Mumbai) [Special Bench]
Tribunal / Bench: Income-tax Appellate Tribunal, Mumbai, Special Bench.
Held: In assessments that have abated (pending on the date of search), the Assessing Officer can make additions in the section 153A assessment even without incriminating material; but in assessments that have not abated (completed/unabated), an addition under section 153A can be made only on the basis of incriminating material — i.e. books/documents found in the search and not produced earlier, or undisclosed income/property disclosed during the search.
Significance: The foundational Special Bench ruling on the scope of section 153A and the abated/unabated distinction; its incriminating-material rule was adopted by the Bombay High Court (Continental Warehousing) and ultimately approved by the Supreme Court in Abhisar Buildwell.
LMJ International Ltd. v. DCIT (2008) 119 TTJ 214 (ITAT, Kolkata)
Held: Where nothing incriminating is found in the course of the search relating to a particular assessment year, the completed assessment for that year cannot be disturbed in the section 153A proceeding; additions for such years must be based on material found in the search.
Significance: An early Tribunal articulation of the incriminating-material requirement, consistent with the later Special Bench (All Cargo) and the Supreme Court (Abhisar Buildwell).
Gurinder Singh Bawa v. DCIT (ITAT, Mumbai) [affirmed: CIT v. Gurinder Singh Bawa (Bombay HC)]
Tribunal / Bench: Income-tax Appellate Tribunal, Mumbai (the decision was affirmed by the Bombay High Court).
Held: Once the time limit for issuing a notice under section 143(2) has expired, a return processed under section 143(1) attains finality and the assessment is 'unabated'; an addition under section 153A for such a year can be made only if incriminating material is found in the search. A bare statement is not enough.
Significance: Applies the unabated-assessment / incriminating-material rule where the original return was only processed under section 143(1); frequently relied on. (Confirm the exact ITA No./reported citation.)
Ideal Appliances Co. (P) Ltd. v. DCIT (ITAT, Mumbai)
Held: Considering whether an assessment made/processed under section 143(1) can be said to have 'abated', and whether a section 153A assessment can be made in the absence of incriminating material, the Tribunal held that for an unabated assessment no addition can be made without incriminating material found in the search.
Significance: A representative Tribunal application of the incriminating-material rule to section 143(1) cases. (Confirm the exact ITA No./reported citation.)
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the local Act (base text amended up to the Finance Act, 2025), with the publisher footnote apparatus and amendment-marker brackets removed; Finance Act, 2026 changes are flagged in the commentary. Citations are stated as reported; Tribunal / AAR / High Court orders are flagged. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.
CHAPTER XIV — PROCEDURE FOR ASSESSMENT
Section 153A — Assessment in Case of Search or Requisition
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Status: Live but with a closed window of application. Inserted by the Finance Act, 2003 (w.e.f. 1 June 2003). Where a search is initiated under section 132 or a requisition is made under section 132A on or after 1 June 2003 but before 1 April 2021, the AO must issue notice and assess or reassess the total income of six assessment years (and, in specified high-value cases, the 'relevant assessment year(s)' in the extended block up to ten years) preceding the year of search; assessments pending on the date of search abate.
FA 2026: No amendment by the Finance Act, 2026. Section 153A does not apply to searches initiated on or after 1 April 2021 — for which the reassessment regime (sections 147-151) applies; for searches initiated on or after 1 September 2024 the new block-assessment scheme in Chapter XIV-B (sections 158B onwards, reintroduced by the Finance Act, 2025) applies.
Window: Searches/requisitions from 1 June 2003 to 31 March 2021.
A. SECTION COMMENTARY
Section 153A is the centrepiece of the second-generation search-assessment scheme that replaced the Chapter XIV-B block-assessment regime (the original sections 158B onwards). On a search under section 132 or requisition under section 132A in the qualifying window, the AO must issue a notice requiring the person searched to furnish returns for six assessment years immediately preceding the assessment year relevant to the year of search (extended, by the fourth proviso inserted by the Finance Act, 2017, to the 'relevant assessment year(s)' up to the tenth preceding year where the escaped income, represented in the form of an asset, is or is likely to be fifty lakh rupees or more). The AO then 'assesses or reassesses' the total income of those years. The second proviso provides that any assessment or reassessment pending on the date of search 'shall abate' — so that there is a single, unified proceeding under section 153A for the pending years.
The single most important interpretive question — fiercely litigated for a decade — was whether, for the years whose assessments were already completed/unabated on the date of search, the AO could make additions de hors any incriminating material found in the search, or only on the basis of such material. The Delhi High Court in Kabul Chawla laid down that completed assessments can be interfered with under section 153A only on the basis of incriminating material unearthed in the search; the Supreme Court in Abhisar Buildwell finally affirmed that view, holding that no addition can be made for completed/unabated years in the absence of incriminating material — while preserving the Revenue's remedy to reopen such years under sections 147/148 if the conditions are met. For abated (pending) years, the AO assesses the total income at large.
B. STATUTORY POSITION (verbatim text)
Reproduced from the local Act (base text to the Finance Act, 2025), including the provisos on the extended block and abatement.
153A. (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003 but on or before the 31st day of March, 2021, the Assessing Officer shall—
(a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years and for the relevant assessment year or years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139;
(b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made and for the relevant assessment year or years :
Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years and for the relevant assessment year or years :
Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years and for the relevant assessment year or years referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate :
Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso), specify the class or classes of cases in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years:
Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless—
(a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years;
(b) the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and
(c) the search under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017.
Explanation 1.—For the purposes of this sub-section, the expression "relevant assessment year" shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made.
Explanation 2.—For the purposes of the fourth proviso, "asset" shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.
(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Principal Commissioner or Commissioner:
Provided that such revival shall cease to have effect, if such order of annulment is set aside.
Explanation.—For the removal of doubts, it is hereby declared that,—
(i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section;
(ii) in an assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year.
C. AUTHORITIES
The decisive authority is Abhisar Buildwell (SC) affirming Kabul Chawla on the incriminating-material requirement.
1. Incriminating material requirement for completed/unabated years
PCIT v. Abhisar Buildwell (P) Ltd. (2023) 454 ITR 212 (SC)
Court: Supreme Court of India; judgment dated 24 April 2023.
Held: In respect of completed/unabated assessments, no addition can be made by the Assessing Officer under section 153A in the absence of any incriminating material found during the search under section 132 or requisition under section 132A; the AO's jurisdiction to 'assess' in such cases is confined to the incriminating material. For abated assessments (pending on the date of search), the AO can assess the total income taking into account the incriminating material and other material. The Court, however, held that the Revenue is not left remediless: in the absence of incriminating material, it may resort to reassessment under sections 147/148 if the conditions are satisfied.
Significance: The conclusive Supreme Court authority on the scope of section 153A (and 153C); it affirms the Kabul Chawla line nationally, resolving the conflict with the contrary view of some High Courts, and balances the assessee's protection with the Revenue's section 147/148 remedy.
CIT v. Kabul Chawla (2016) 380 ITR 573 (Delhi High Court)
Court: Delhi High Court.
Held: Laid down the now-affirmed propositions: assessments/reassessments pending on the date of search abate; completed assessments can be reopened under section 153A but additions for those years must be confined to, and based on, incriminating material found in the search; in the absence of such material, the completed assessment is not disturbed and only the returned/assessed income stands.
Significance: The foundational High Court statement of the incriminating-material principle, expressly approved by the Supreme Court in Abhisar Buildwell. The locus classicus on section 153A.
2. Abatement and the unified proceeding
Abatement of pending assessments — second proviso
Principle: By the second proviso to section 153A(1), any assessment or reassessment relating to the six (or extended) assessment years that is pending on the date of initiation of the search/requisition abates; the pending proceeding merges into the single section 153A assessment, in which (for the abated years) the AO assesses the total income. Only completed/unabated assessments enjoy the incriminating-material protection.
Cognate authority: Followed in a large body of High Court authority (e.g. CIT v. Continental Warehousing Corporation (Bombay HC) and CIT v. Anil Kumar Bhatia (Delhi HC)); the abated/unabated distinction is now settled by Abhisar Buildwell.
3. The incriminating-material line in the High Courts
CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015) 374 ITR 645 (Bombay)
Court: Bombay High Court.
Held: Where an assessment has attained finality before the date of search (unabated assessment), the Assessing Officer, while passing the section 153A read with section 143(3) order, cannot disturb it unless incriminating material gathered in the search shows otherwise; only proceedings pending on the date of search abate. Additions de hors incriminating material are impermissible for completed years.
Significance: The Bombay High Court's adoption of the incriminating-material requirement, parallel to Kabul Chawla; later affirmed by the Supreme Court in Abhisar Buildwell.
CIT v. Anil Kumar Bhatia (2012) 352 ITR 493 (Delhi)
Held: Section 153A is triggered by the search and the AO is to assess the total income of the six years; the provision applies even where assessments are completed and even if returns were processed under section 143(1). The Court, however, expressly left open the situation where no incriminating material is found for a completed year — the question later settled by Kabul Chawla and Abhisar Buildwell.
Significance: An early and much-cited decision on the mechanics of section 153A; read in the light of the later incriminating-material rulings which resolved the question it left open.
Pr. CIT v. Meeta Gutgutia (2017) 395 ITR 526 (Delhi) — SLP dismissed
Held: Completed assessments can be reopened/interfered with under section 153A only on the basis of incriminating material found during the search; absent such material, the invocation of section 153A for a concluded year is unjustified. The Revenue's Special Leave Petition was dismissed by the Supreme Court.
Significance: A leading Delhi High Court authority (with the SLP dismissal) firmly applying the incriminating-material requirement; squarely in line with Abhisar Buildwell.
4. Unabated years, statements and the evidentiary base
Pr. CIT v. Saumya Construction (P) Ltd. (2016) 387 ITR 529 (Gujarat)
Court: Gujarat High Court.
Held: For a completed/unabated assessment, an addition under section 153A can be made only on the basis of incriminating material found in the search; in the absence of such material the concluded assessment cannot be disturbed. The assessment under section 153A is, for such years, confined to the search material.
Significance: The Gujarat High Court's articulation of the incriminating-material requirement, parallel to Kabul Chawla and Continental Warehousing; approved in substance by Abhisar Buildwell.
Pr. CIT v. Best Infrastructure (India) (P) Ltd. (2017) 397 ITR 82 (Delhi)
Held: A statement recorded under section 132(4) during the search does not, by itself, constitute 'incriminating material' for the purpose of a section 153A addition in a completed/unabated year; there must be tangible incriminating material unearthed in the search. A retracted or bare statement, without corroborating seized material, cannot sustain the addition.
Significance: Important qualification on what counts as 'incriminating material' — a section 132(4) statement alone is not enough; relevant to the Abhisar Buildwell / Kabul Chawla framework.
Dayawanti (Smt.) v. CIT (2017) 390 ITR 496 (Delhi)
Held: Where the search yielded incriminating material — including the assessee's own admissions and the absence/discrepancy of books — additions under section 153A for the block were sustainable; block additions must rest on material found in, or relatable to, the search, but where such material exists the additions are valid (and reasonable estimation is permissible).
Significance: Illustrates the 'pro-revenue' side of the incriminating-material rule: where genuine search material exists, section 153A additions stand. (To be read with Best Infrastructure on the limited weight of a bare 132(4) statement; the decision was carried to the Supreme Court — verify current status before independent reliance.)
5. Tribunal authority — the Special Bench and the abated/unabated distinction
All Cargo Global Logistics Ltd. v. DCIT (2012) 137 ITD 287 (ITAT, Mumbai) [Special Bench]
Tribunal / Bench: Income-tax Appellate Tribunal, Mumbai, Special Bench.
Held: In assessments that have abated (pending on the date of search), the Assessing Officer can make additions in the section 153A assessment even without incriminating material; but in assessments that have not abated (completed/unabated), an addition under section 153A can be made only on the basis of incriminating material — i.e. books/documents found in the search and not produced earlier, or undisclosed income/property disclosed during the search.
Significance: The foundational Special Bench ruling on the scope of section 153A and the abated/unabated distinction; its incriminating-material rule was adopted by the Bombay High Court (Continental Warehousing) and ultimately approved by the Supreme Court in Abhisar Buildwell.
LMJ International Ltd. v. DCIT (2008) 119 TTJ 214 (ITAT, Kolkata)
Tribunal / Bench: Income-tax Appellate Tribunal, Kolkata.
Held: Where nothing incriminating is found in the course of the search relating to a particular assessment year, the completed assessment for that year cannot be disturbed in the section 153A proceeding; additions for such years must be based on material found in the search.
Significance: An early Tribunal articulation of the incriminating-material requirement, consistent with the later Special Bench (All Cargo) and the Supreme Court (Abhisar Buildwell).
Gurinder Singh Bawa v. DCIT (ITAT, Mumbai) [affirmed: CIT v. Gurinder Singh Bawa (Bombay HC)]
Tribunal / Bench: Income-tax Appellate Tribunal, Mumbai (the decision was affirmed by the Bombay High Court).
Held: Once the time limit for issuing a notice under section 143(2) has expired, a return processed under section 143(1) attains finality and the assessment is 'unabated'; an addition under section 153A for such a year can be made only if incriminating material is found in the search. A bare statement is not enough.
Significance: Applies the unabated-assessment / incriminating-material rule where the original return was only processed under section 143(1); frequently relied on. (Confirm the exact ITA No./reported citation.)
Ideal Appliances Co. (P) Ltd. v. DCIT (ITAT, Mumbai)
Tribunal / Bench: Income-tax Appellate Tribunal, Mumbai.
Held: Considering whether an assessment made/processed under section 143(1) can be said to have 'abated', and whether a section 153A assessment can be made in the absence of incriminating material, the Tribunal held that for an unabated assessment no addition can be made without incriminating material found in the search.
Significance: A representative Tribunal application of the incriminating-material rule to section 143(1) cases. (Confirm the exact ITA No./reported citation.)
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the local Act (base text amended up to the Finance Act, 2025), with the publisher footnote apparatus and amendment-marker brackets removed; Finance Act, 2026 changes are flagged in the commentary. Citations are stated as reported; Tribunal / AAR / High Court orders are flagged. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.