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2016 (6) TMI 1254 - AT - Income TaxAssessment u/s 153A - addition u/s 40A - Held that:- undisputedly and admittedly, assessment for both the A.Ys. 2007-08 and 2008-09 has been completed on the date of search, i.e before 22.3.2011 and in this situation, as per ratio and summarised legal position laid down by Hon’ble High Court, in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] para 37(vii) completed assessment can be interfered by the AO while making assessment u/s 153A r.w.s 143(3) of the Act only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed by the assessee or made known in the course of original assessment to the AO. Since no incriminating material pertaining to additions made by the AO u/s 40A(3) of the Act was unearthed during the course of search or requisition of documents or any subsequent post search enquiry or investigation and on the date of search assessment for both the A.Ys already stood completed, then no additions could have been made to the income already assessed in the original assessment proceedings. On the basis of foregoing discussion, we are inclined to hold that the assessment orders framed by the AO u/s 153A r.w.s 143(3) of the Act for both the A.Ys and additions made therein u/s 40A(3) of the Act are bad in law and thus the same are not sustainable - Decided in favour of assessee.
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