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2018 (1) TMI 391 - AT - Income TaxValidity of assessment u/s 153A - addition u/s 68 - Held that:- In the present case, is an admitted fact that no recovery has been made from the possession of the assessee-company. The department’s belief is that some material found during the course of search in Aryan Sainik Group of cases. The A.O. on examining the books of account of the assessee-company found that assessee has received share application money of ₹ 1.25 crores in assessment year under appeal which were already disclosed to the Revenue Department prior to the date of search. Therefore, its books of account could not be treated as incriminating material against the assessee-company. No evidence was found during the course of search that any money (cash credit) belongs to the assessee- company. No evidence was found during the course of search or otherwise to prove that assessee-company has received any accommodation entry. The A.O. has not referred to any seized document or material in the assessment order on the basis of which, addition on merit have been made. Therefore, the conditions of Section 153C are not satisfied in this case. Therefore, there were no justification for the A.O. to make addition of ₹ 1.25 crores against the assessee in proceeding under section 153C of the I.T. Act, 1961. We, accordingly, set aside the orders of the authorities below and quash the proceedings under section 153C of the I.T. Act. Since, we quash the proceedings under section 153C of the Act, therefore, there is no need to decide the addition on merit - Decided in favour of assessee
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