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2020 (4) TMI 225 - AT - Income TaxProceedings u/s 153A - Exemption u/s.54B denied - Whether incriminating material during search or not? - HELD THAT:- On verification of the detail filed by the assessee, the assessing officer observed that a payment to the amount for ₹ 7 lacs towards purchase of new asset was made before the date of transfer of existing capital asset. The assessee has filed return of income u/s. 153A of the act to the amount of ₹ 14,75,110/- and the same income was declared in the original return of income filed u/s. 139(1) of the act on 27th October, 2010. It is clearly demonstrated from the finding of the assessing officer that as per the return of income the assessee has shown long term capital gain from sale of land against which the assessee has claimed exemption u/s. 54B - It is also clear from the findings of the lower authorities on verification of the submission of the assessee made during the course of assessment proceedings, the assessing officer has noticed that payment of ₹ 7 lacs was made for purchasing of new assets before the date of transfer of capital asset. It is clearly established from the finding of the assessing officer reported in the assessment order that impugned addition was not made on the basis of any incriminating material found during the course of search. After considering the judicial pronouncement referred in the case of Saumya Consturction Pvt. Ltd. [2016 (7) TMI 911 - GUJARAT HIGH COURT]wherein it is held that if no incriminating material during search found no addition can be made on the basis of material collected after search. In the light above facts and decision of Jurisdictional High Court as cited above, we consider that assessing officer has disallowed the claim of deduction to the extent of ₹ 7 lacs on the basis of submission made by the assessee during the course of assessment proceedings and same was not based on any incriminating material, therefore, the impugned addition was bad in law. - Decided in favour of assessee.
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