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2017 (7) TMI 1043 - AT - Income TaxValidity of assessment u/s 153A - addition on account of gift - Held that:- In absence of any incriminating material found during the course of search qua the gifts disclosed in the original return of income, no addition can be made in the assessment made u/s 153A. Similarly, in the appeal for the AY 2005-06 admittedly the return of income filed originally had attained finality and in terms of section 153A read with second proviso, hence the assessment for the AY 2005-06 was unabated at the time of search conducted on 28.02.2007. For the said gift also nothing incriminating was unearthed during the search and therefore, in absence of any incriminating material relating to gift found during the course of search, we hold that such an addition cannot be roped in while completing the reassessment u/s 153A. Above finding given in the AY 2004-05 will apply mutatis mutandis and accordingly, appeal for assessment year 2005-06 is allowed in favour of assessee. In the appeal for the AY 2001-02, the addition relates to opening balance as on 01.04.2001 as reflected in Balance Sheet. For this addition also, from the perusal of the assessment order, it is quite apparent that no incriminating material has been found during the course of search that the opening balance as shown in the balance sheet as on 31.03.2001 in the form of cash in hand or bank balance of ₹ 3,03,309/- is an undisclosed income which has been unearthed on the basis of any incriminating material found during the course of search. Moreover, the amount of opening balance cannot be added unless something incriminating is found qua the same amount of closing balance as reflected in the balance sheet of the earlier year. Thus, this addition cannot be made while making reassessment under the provisions of section 153A.
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