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2019 (1) TMI 393 - AT - Income TaxAssessment u/s 153A - proof of incriminating document found during the course of the search - Held that:- The assessee has filed her return of income for the relevant assessment years only after the issuance of notice U/s.153C r.w.s. 153A of the Act. Hence on the earlier occasions there was no assessments U/s.143(3) of the Act made in the case of the assessee Provisions of Section 153A(b) specifically provides that in the case of search proceedings, assessment as well as re-assessment of the total income of the assessee can be made for six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted. Therefore during the course of reassessment the assessee is bound to produce the requisite documents to substantiate her claim of deduction. Hence the ground raised by the assessee with respect to jurisdiction U/s.153C r.w.s. 153A is devoid of merits. - Decided against assessee. Disallowance of interest earned from pawn broking business - Held that:- From the facts of the case, it is evident that the Ld.AO had made addition based on presumptions. He has not made any independent enquiries to substantiate his presumptions. CIT(A) has also simply endorsed the view of the Ld.AO. We are of the view that this nature of additions made by the Ld.Revenue Authorities cannot be justified - direct the AO to delete the additions made towards excess interest income earned in the hands of the assessee. - Decided against revenue. Addition towards appraiser fee - Held that:- The assessee herself had disclosed excess interest received which she could not disclose due to the Government regulations. Had she not disclosed such interest in her books, her profit would have been reduced and there would have been no necessity to claim deduction towards appraiser fee. However the assessee has disclosed the excess income diligently and also claimed the expense towards appraiser fee. The assessee has also furnished the details submitted by the appraisers before the Ld.AO in his remand proceedings. Revenue has come to the conclusion that the payment made by the assessee towards appraiser fee is not genuine just because on the summons issued by the Ld.AO certain appraisers failed to appear before him. We are not agreement with this action of the Ld. Revenue Authorities. It would have been appropriate to conduct further enquiry on the appraisers before coming to such conclusion. Considering the facts and circumstance of the case, we are of the considered view that the disallowance of appraiser fee is not appropriate. - Decided against revenue. Adhoc disallowance towards salary expense - Held that:- Since we have held the issue with respect to appraiser fee in favour of the assessee on similar circumstance, in the case of disallowance of salary expense also, we are of the considered view that the Revenue was not justified in disallowing the salary expenditure. Therefore we hereby direct the Ld.AO to delete the addition. Decided against revenue. Levy of interest U/s.234A, 234B & 234C are consequential in nature.
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