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2019 (1) TMI 530 - AT - Income TaxAssessment u/s 153A - Deduction u/s 80IB (10) denied - order passed on the non-existing entity - firm on which the order was passed was M/s Nahar Enterprises which stands closed with effect from 20.11.2011 and the business was taken over by “M/s Nahar Builders Limited” and therefore the assessment order passed on non-existing entity - Held that:- Search action was a strict action taken against the privacy of any person and therefore the aforesaid powers bestowed upon the authorities were to be exercised with utmost precaution and only after conducting detailed enquiries & investigation. Therefore, non-mentioning of correct name of the entities could not be termed as mere clerical or procedural mistake particularly when the assessee had already intimated the fact of dissolution of the firm to the department much before the date of the search. Therefore, the issue of Panchnama in the name of dissolved firm could not be said to be valid. When the search u/s 132 was conducted and to be valid, the warrant and notice should be issued in the name of the successor only whereas these, in the present case, had been issued in the name of Nahar Enterprises, a non-existent entity which could not be said to be mere clerical mistake. Similar facts exist in the given year. No contrary judgment has been placed on record by the revenue. Therefore, material facts and circumstance being the same, respectfully following the view of the coordinate bench of the Tribunal, we hold that the assessment proceedings were bad in law and therefore, could not be sustained in the eyes of law. We order so. The issue on merits has also been decided in assessee’s favor by holding that service area, window area, window projections and cupboard projections were not to be included while computing the builtup area. - Decided in favour of assessee.
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