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2017 (6) TMI 774 - AT - Income TaxAssessment u/s 153A - unexplained share applications - reference to incriminating material - Held that:- Perusal of the assessment order reveals that the AO has not referred to any incriminating material while making the additions but has rather relied on the statement of Mr SK Gupta and has doubted the genuineness of the transaction as well as the creditworthiness of the share applicants. CIT (appeals) has also not made any linkage of the impugned addition to any incriminating material found during the course of search but has rather confirmed the addition relying on preponderance of probabilities as espoused in the case of Sumati Dayal(1995 (3) TMI 3 - SUPREME Court). This action could have been upheld if it was a regular assessment under section 143 (3) of the Act but provisions of section 153A, restrict the ambit of assessment to incriminating material unearthed during the course of search. Thus, respectfully following case CIT Central –III vs. Kabul Chawla ( 2015 (9) TMI 80 - DELHI HIGH COURT) we find that the addition has been wrongly added to the income of the assessee. - Decided in favour of assessee.
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