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2018 (9) TMI 869 - AT - Income TaxAssessment u/s 153A - Held that:- It is undisputed fact that the assessment for impugned AY was non-abated assessment since no proceedings were pending for the same on the date of search i.e. 30/03/2012. The original return of income was filed by the assessee on 07/05/2010 and the time limit for issuance of scrutiny assessment notice u/s 143(2) had already expired which was a statutory requirement to scrutinize the return of income of the assessee. The impugned additions are not based on any incriminating material found during the search operations since the expenditure as claimed by the assessee has been disallowed by placing reliance on Section-3 since AO opined that the business was not set-up by the assessee during impugned AY. However, it is noteworthy that the genuineness of the expenditure is also not in question since Ld. AO himself has treated the same as capital expenditure. Another point to be noted is that impugned order record a finding that majority of these expenditure have already been disallowed by the assessee while filing the original return of income which could not be controverted by the revenue - no addition can be made in respect of assessments which have become final if no incriminating material is found during search or during 153A proceedings - See CIT Vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT]. - Decided in favour of assessee
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