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2019 (5) TMI 1156 - AT - Income TaxAssessment u/s 153C - disallowance u/s 14A r.w.r. 8D - whether the AO could have made any addition de hors the material found during the course of the search in an assessment year which have not abated? - HELD THAT:- Thus, as per judgment in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT], the existence of the seized material found during search is a must for making addition in those assessment years which have not abated. Although the judgment of the Hon’ble Delhi High Court was rendered in a case falling u/s 153A, but essentially the provisions of sections 153A and 153C are identical and pari materia and the ratio of the judgment of the Hon’ble Delhi High Court will apply equally to a case u/s 153C also. In the present case, it is an admitted fact that on the date of the search i.e. on 19th November, 2010 the assessment for the year under consideration was not pending. It is also an admitted fact that nothing incriminating was found during the course of the search which could be related to the disallowance made by the AO u/s 14A. The Assessment Order does not make any reference to any incriminating material found and seized during the course of search which could establish some kind of nexus with the 14A disallowance. in absence of any incriminating material being found during the course of the search, AO will be without jurisdiction in making such an addition. It is the incriminating material found during search which gives jurisdiction to the AO to make additions in the assessment proceedings in respect of assessments which have not abated. In the absence of incriminating material in such cases, as held in the case of Kabul Chawla (supra)the completed assessment is not to be disturbed. - Decided in favour of assessee.
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