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2014 (2) TMI 810 - AT - Income TaxSustainability of the additions for completed assessments - Assessments made u/s 153 A r.w section 143(3) of the Act – Addition made u/s 68 and 14A of the Act - Held that:- In the assessment u/s 153A, the AO made Addition u/s 68 on account of artificially inflated investment in house duly disclosed in the balance sheet of the assessee and disallowance u/s 14A - there is no incriminating material before the AO to support the above additions - The valuation report, which is garnered by the authorities constitutes mere estimates and the provisions of section 132 is not required to obtain such report from the DVO - for making additions AO has not used even the valuation report and the AO disallowed what is reported in the books - Similar is the case with the additions u/s 14A of the Act – thus, the additions are made merely based on the entries in the accounted books and certainly not based on either the unaccounted books of accounts of the assessee or books not produced to the AO earlier or the incriminating material gathered by the investigation wing of the revenue – thus, the assessments or additions are unsustainable in law. Relying upon Gurinder Singh Bava vs. DCIT [2014 (2) TMI 731 - ITAT MUMBAI] In the absence of any seized material which are incriminating in nature to back the additions u/s 68 or 14A of the Act made in the assessment made u/s 153A of the Act for the AY under consideration - Regarding the DVO’s report gathered during the search action, the report suffers from certain deficiencies quacost of construction of residential property and the land obtained thereto - This is merely a presumption rather conclusion based on any evidences - Such additions are unsustainable in law in the assessments made u/s 153A r.w.s 143(3) of the Act – notice u/s 153A of the Act and (2) in disapproving the making of the impugned additions u/s 68 and 14A of the Act, which are not backed by the incriminating materials - In the absence of incriminating material, the role of the AO is only to reiterate the returned income filed in response to the notice u/s 153A of the Act - Decided partly in favour of Assessee.
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