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2014 (5) TMI 355 - AT - Income TaxAddition made u/s 68 of the Act – Unexplained cash credits – Loans received from various persons – Admission of additional evidences - Held that:- The assessee has received loans from 47 persons in cash during the financial year – the cash loans aggregated to Rs. 92,59,530 - there were other loans also, which has been accepted by the AO - the documents are quite relevant for the adjudication of the cash credit, therefore they are admitted - the additional evidences have already been filed before the Department in the proceedings u/s 153C - the additional evidences go to the very root of the addition made, which needs to be considered for adjudication of the issue – the documents should be considered for deciding the issue afresh on merits – the documents have not been examined by any of the departmental authorities, thus, the matter is required to be remitted back to the AO for fresh adjudication of the entire addition made u/s 68 of the Act – Decided in favour of Assessee. Proceedings u/s 153C of the Act – Held that:- A search and seizure action u/s 132(1) has taken in the case of the assessee’s husband Mr. Jawahar B. Purohit – proceeding u/s 153C has been initiated in the case of the assessee - it cannot be held that the assessment proceedings for the assessment year 2005-06 were pending on the date of the search - the original assessment order in the case does not get abated - Once the original order does not abate, then whatever is the fate of the addition made u/s 68, in the regular proceedings u/s 143(3), it would be applicable in the proceedings only and that would be final qua the assessment year 2005-06 - No further addition on this count as to u/s 68, pertaining to same creditors can be made again u/s 153C / 153A proceedings – Relying upon CIT v/s Shaila Agarwal [2011 (11) TMI 213 - ALLAHABAD HIGH COURT] - only the assessment proceedings and the re-assessment pending on the date of initiation of search, shall abate under the second provisio to section 153A and if an appeal is pending against a completed assessment before the Tribunal on the date of search, then such completed proceeding do not abate -if any addition on account of provisions of section 68 is called for in the case, it should be examined in the regular assessment proceedings u/s 143(3) and not u/s 153C r/w section 153A - no addition is warranted in the proceeding u/s 153C r/w section 154A – Decided in favour of Assessee.
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