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2013 (4) TMI 268 - AT - Income TaxUnexplained share application money - notice u/s 153C - as contested by assessee that the share application money was brought forward from the previous year, therefore, what is appearing in the balance sheet is only opening balance - Held that:- It appears from the order of CIT(A) that he has proceeded on the footing that an assessment u/s 153C has to be made only on the basis of materials found as a result of search operation. As per the CIT(A), AO while completing the assessment order u/s 153C has to confine himself to the seized material and cannot examine any other material relying on case of Vijaybhai N. Chandrani V/s ACIT (2010 (3) TMI 770 - GUJARAT HIGH COURT). However, as find that in the case of Gopal Lal Bhadruka V/s. DCIT,[2012 (6) TMI 657 - ANDHRA PRADESH HIGH COURT] it is held that while completing assessment u/s 153C AO will not be confined to the seized materials only but can consider all the material as may be available before him. In this view of the matter, the conclusion arrived at by the CIT(A) is not to be accepted. However, it appears from the order of the CIT(A) that the assessee has raised a specific contention that Rs.5,00,000/- which was added on account of unexplained share application money are only opening balances as they continued from previous year. Similarly, the CIT(A) has also not gone into the merits of the addition made on account of loan creditors and disallowance of expenses on the basis of evidences produced before him or as may be available on record as he has deleted the additions only on the ground that the assessment u/s 153C has to be on the basis of seized material. Therefore, considering the totality of the facts and circumstances remit the matter back to the file of the AO, who shall reconsider the issue afresh on the basis of all the materials available on record including the seized material.
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