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2018 (1) TMI 1487 - AT - Income TaxAssessment u/s 153A - disallowances u/s 40(a)(ia) and 36(1)(va) - disallowance made by the AO without referring to any incriminating material found and seized during the course of search and seizure action - HELD THAT:- The scope and jurisdiction of the AO to reassess the total income of the assessee u/s 153A is limited only to the extent of the income disclosed by the incriminating material found and seized during the search and seizure action. AO has reassessed the income of the assessee by making the disallowance u/s 40(a)(ia) as well as u/s 36(1)(va) of the Act without making any reference to any incriminating material found. Therefore, the disallowance/addition made by the AO for these 3 assessment years completed u/s 153A is undisputedly not based on any incriminating material found or seized during the course of search and seizure action u/s 132 of the Act. Once, the Assessing Officer has completed the reassessment u/s 153A without any reference to the incriminating material found then, no addition cannot be made to the returned income of the assessee. See KABUL CHAWLA [2015 (9) TMI 80 - DELHI HIGH COURT] - Decided in favour of assessee.
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