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2019 (4) TMI 675 - AT - Income TaxAssessment u/s 153A - assessment was not pending on the date of search - proof of incriminating material unearthed during the course of search and seizure u/s 132 - Addition u/s 68 - HELD THAT:- AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A. Therefore, even if the information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure u/s 132 in case of the assessee. The requirement for making the addition u/s 153A in the assessment year where the assessment was not pending on the date of search and the proceedings are in the nature of reassessment is essentially the incriminating material disclosing undisclosed income which was not disclosed by the assessee. In the case in hand, the AO himself has not claimed any incriminating material found during the search and seizure in the case of the assessee. Additions made by the AO while passing the assessment order under section 153A for the impugned assessment year cannot be sustained and liable to be set-aside. Coming to the merits of the additions sustained by the ld CIT(A) u/s 68 it is noted that the assessee company has received share application money of ₹ 8 lacs and ₹ 10.35 lacs as unsecured loan from M/s Jalsagar Commerce Pvt Ltd during the financial year relevant to impugned assessment year. As relying on M/S. KOTA DALL MILL VERSUS THE DEPUTY COMMISSIONER OF INCOME-TAX AND VICE-VERSA [2019 (1) TMI 344 - ITAT JAIPUR] the addition made u/s 68 towards share application money and unsecured loan from M/s Jalsagar Commerce Pvt ltd is hereby directed to be deleted. - Decided is favour of assessee.
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