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The Tax Publishers2019 TaxPub(DT) 7599 (Del-Trib) INCOME TAX ACT, 1961
Section 153A
CIT(A) had rightly deleted the addition made in the assessment order framed under section 153A on the ground that when assessment was not abated and no incriminating evidences were found in search and seizure operation conducted under section 132, no addition could be made.
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Search and seizure - Assessment under section 153A - Claim of exemption under section 54F -
A search was conducted on assessee and his associated concerns and notice under section 153A was issued. AO noticed that assessee had shown LTCG on account of surrender of tenancy right in favour of M/s I which was claimed as exempt under section 54F on the ground that the same was invested in a residential property. AO accordingly made addition on account assessee's income from other sources. CIT(A) proceeded to delete the addition by quashing the assessment on the ground that assessment in this case was not abated no incriminating evidences were found in the search and seizure operation conducted under section 132. Held: It is a well settled law that in case of unabated assessment, if no incriminating material was found or seized during the course of search, then no addition can be made merely based on information already available on record. AO himself in assessment order had not referred to any seized documents or incriminating material found during the course of search albeit had proceeded on the perusal of the computation of income filed. No addition can be roped in the assessment made under section 153A in absence of any incriminating found during the course of search, especially in the case of unabated assessment.
REFERRED : Pr. CIT v. Best Infrastructure (India) Pvt. Ltd. (2017) 84 taxmann.com 287 (Del.) : 2017 TaxPub(DT) 3839 (Del-HC); Pr. CIT v. Meeta Gutgutia (2017), 395 ITR 526 (Del) : 2017 TaxPub(DT) 1767 (Del-HC); CIT v. Kabul Chawla (2016) 380 ITR 573 (Del.) : 2015 TaxPub(DT) 3486 (Del-HC); CIT v. Anil Kumar Bhatia (2013) 352 ITR 0493 (Del) : 2013 TaxPub(DT) 0245 (Del-HC) and ACIT v. Shri Gobind Gulati [I.T.A. No. 5967/Del/2014 Order, dated 30-5-2018].
FAVOUR : In assessee's favour.
A.Y. : 2005-06
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