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2020 (12) TMI 393 - AT - Income TaxAssessment u/s 153A - Deemed dividend addition u/s 2(22)(e) - HELD THAT:- In a case where no assessment proceedings are pending on the date of the search and seizure proceedings, the assessment under section 153A can be carried out only on the basis of seized material. In a case where no incriminating material is unearthed during the course of search proceedings and the assessment proceedings remain unabated as on the said date, no additions can be validly made in the hands of the assessee. Our aforesaid view is fortified by the judgment of the Hon’ble High Court of Delhi in the case of CIT vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT]. As on the date of the search and seizure proceedings no assessment proceedings were pending in the case of the assessee before us, therefore, in the absence of any incriminating material having been found in the course of such proceedings no addition could have been validly made in the hands of the assessee. Accordingly, respectfully following the aforesaid judgments in the case of M/s Mala Builders Pvt. Ltd. [2016 (11) TMI 1046 - ITAT CHANDIGARH] we find no infirmity in the view taken by the CIT(A) who had rightly quashed the addition made by the A.O u/s 2(22)(e) of the Act. - Decided against revenue.
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