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2019 (7) TMI 753 - HC - Income TaxAssessment u/s 153A - Addition u/s 41(1) - Cessation of liability - as alleged assessee had not been able to produce sufficient supporting evidence to prove genuineness of the creditors - HELD THAT:- The findings of fact recorded by the tribunal that no material was recovered during the search as per the provisions of section 153(C), which could have been treated as incriminating material and which have been made as a base for supporting the action of the department. Under the circumstances, the addition on account of Cessation of liability u/s 41(1) is illegal, in valid and not sustainable in the eye of law. If such course is permitted it would amount to reopening assessment order without any new material. Similar view has been taken by the Apex Court in the case of CIT Versus Sinhgad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] held as in absence of any incriminating material which was seized as per the provisions of section 153(C), notice u/s 153(C) cannot sustain. - Decided against revenue
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