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2017 (4) TMI 1555 - AT - Income TaxAssessment u/s 153A - Addition of remission of foreign currency term loan - whether there is scope of assessment u/s. 153A of the Act in respect to completed assessment which is limited only to undisclosed income and undisclosed assets found during the course of search or not? - HELD THAT:- The regular assessment under s. 143(3) of the Act had been completed as per order dated 22.03.2007 of the AO. Therefore, it follows that as on the date of search, there was an assessment completed on the assessee under section 143(3) of the Act and in the said order there is no addition/ disallowance regarding the remission of foreign currency term loan, subsequently, the A.O. initiated proceedings under s. 153A. As in the assessment completed under s. 143(3) r.w.s 153A, the A.O. has brought to tax a sum being the principal amount of loan waived by the lender without any incriminating material found during the course of search. Once this is the position the issue is clearly covered in favour of assessee and against the Revenue by the decision of Continental Warehousing Corporation (Nhava Sheva) Ltd.[2015 (5) TMI 656 - BOMBAY HIGH COURT]. Respectfully, following the same and in the given said of facts, we are of the view that this principal amount waived by the lender could not be added. Accordingly, we confirm the order of CIT(A) deleting the addition and dismiss this issue of Revenue’s appeal.
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