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2022 (9) TMI 1031 - AT - Income TaxAssessment u/s 153A - Scope of unabated assessment proceedings - Proof of incriminating material found during the course of search or not? - HELD THAT:- As there is no incriminating material found during the course of search and therefore the addition made cannot be construed as made using material found during search u/s.132. If the contention of revenue is to be accepted that the material i.e. the show cause notice issued by the DRI can be used as basis for making the addition, then the assessing officer out to have requisitiond for such material u/s.132A which is not the case here. Revenue has not brought on record of having complied with the procedure u/s.132A and therefore we see merit in the argument of the ld AR. Further the document relied on by the AO is a show cause notice alleging the removal of marble slabs into DTA and is not a concluded finding that the marble slabs are sold without recording it in the books. We are unable to appreciate that the AO has not conducted any further enquiry on the allegations contained in the show cause notice of DRI but has proceeded to consider the same as incriminating material warranting the addition. There can be no presumption based on a document has come to the notice of the AO since nothing incriminating is found during the course of search in support of the alleged removal of marble slabs into DTA. We hold that the addition made by the assessing officer towards unaccounted sales is not sustainable and therefore delete the said additions. This issue is allowed in favour of the assessee.
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