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2016 (11) TMI 1296 - AT - Income TaxDeemed dividend addition u/s 2(22) - additions made u/s 153A - Held that:- A.O. had no jurisdiction to make additions u/s 153A of the Act, for the assessments which are not pending as on the date of search. The assessment for the assessment years 2005-06 to 2009-10 were not pending as on the date of search. The time limit for issue of notice under sec. 143(2) has been expired. Therefore, the A.O. has no jurisdiction to reassess the income for the assessment year 2005-06 to 2009-10 in the absence of any incriminating materials. The CIT(A) has rightly deleted the additions. We do not see any reason to interfere with the order of CIT(A). Hence, we inclined to uphold CIT(A) order and direct the A.O. to delete the additions made towards deemed dividend for the assessment year 2005-06 to 2009- 10. Even where there is no pending proceedings and no incriminating material has been found, the assessing officer is still required to pass an order u/s 153A of the Act, despite the fact that the assessed income will be remaining the same as that was originally assessed income, since there was no incriminating material. Therefore, we direct the A.O. to delete the additions made towards deemed dividend u/s 2(22)(e) of the Act, for the A.Y. 2010-11 and 2011-12. The transaction between the assessee and his company are not coming within the meaning of loans and advances as defined u/s 2(22)(e) of the Act. The facts remain unchanged. The revenue has failed to brought on record any evidences to prove that the findings of the fact recorded by the CIT(A) is incorrect. Therefore, we are of the view that the CIT(A) has rightly deleted additions made towards deemed dividend under the provisions of section 2(22)(e) of the Act. We do not see any reason to interfere with the order of the CIT(A). - Decided in favour of assessee
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