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2012 (11) TMI 714 - AT - Income TaxDisallowance of Interest Paid - Assessment after search and seizure - AO observed that the assessee failed to prove with evidence like books of account and bank statement about the nexus between he interest claim and interest received. He also observed that assessee’s claim that interest paid on loans were utilized for earning income is not acceptable in the absence of evidence. - held that:- In the present case, there is no incriminating material found during the course of search to frame assessment u/s 143(3) read with section 153C of the Act. The determination of undisclosed income consequent to search action and framing assessment under section 153C of the Act is different from regular assessment or it is not substitute for regular assessment. Being so, the AO shall frame assessment on the basis of incriminating material found during the course of search action under sec. 153C of the Act. The Assessing Officer was not justified in making additions by way of disallowance of interest without any specific incriminating material on hand. - Decided in favor of assessee. Decision case of Vijaybhai N. Chandrani Vs. ACIT [2010 (3) TMI 770 - GUJARAT HIGH COURT], followed.
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