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2016 (4) TMI 855 - AT - Income TaxAssessment under Section 153 - addition u/s 50C - Held that:- AO has made addition by invoking deeming provision of section 50C of the Act and addition for A.Y 2005-06 has been made on the basis of facts and evidence which was already available with the AO at the time of original assessment proceedings as well as subsequent assessment proceedings which were completed on 26.12.2007 u/s 143(3) r.w.s. 153A of the Act. It is pertinent to note that the AO has not made any addition in the other A.Ys which fall within the block of A.Ys as well as in the A.Y wherein search and seizure operation was conducted. In this situation, when there was no incriminating material with the AO, found during the course of search and seizure action u/s 132 of the Act on 19.1.2009 which was second search operation in sequence, then no addition can be held as sustainable de hors incriminating material found during the course of search. On the basis of foregoing discussion, we are inclined to held that the addition made for the year under consideration, which is not based on any incriminating material found during the course of search is not sustainable and respectfully following the precedent laid down by the Hon'ble High Court, in the case of Kabul Chawla [supra] addition made by the AO and upheld by the ld. CIT(A) is demolished. - Decided in favour of assessee
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