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2020 (9) TMI 908 - AT - Income TaxAssessment u/s 153A - seized material found from the premises of the assessee can be made the foundation of the addition - Unaccounted investment u/s.69 - payments been made by the partners - HELD THAT:- No infirmity in the decision of Id. CIT(A) after placing reliance on the decision of Saumya Construction [2016 (7) TMI 911 - GUJARAT HIGH COURT] wherein it is held that if in relation to any assessment year no incriminating material is found no addition or disallowance can be made in relation to that assessment year in exercise of power u/s. 153A. Addition u/s 69 - During the course of survey u/s. 133 A carried out along with action u/s. 132 of the act a document as banakhat between a seller Shri R. N. Desai and purchaser Shri Suresh R. Patel was impounded from the shop no. 22/23 of Shayona Complex. As stated that in the banakhat that an amount of ₹ 1.8 crores in cash has been paid by Shri Suresh Patel to Shri R.N. Desai at the time of execution of the said banakhat. As per the banakhat the total consideration of the land. AO has added the differential in the case of assessee firm on protective basis u/s. 69 - As finding of CIT(A) it is undisputed fact that the said document was belonged to Shri Sureshbhai Patel which he had executed in individual capacity. There was no mention of making of any payment by the assessee firm. We consider that Id. CIT(A) has correctly deleted this protective addition holding that assessee firm was not a party and completely stranger to the document. Therefore, this ground of appeal of the revenue is also dismissed. Addition u/s 40A(3) - HELD THAT:- CIT(A) in his finding the whole of the purchase price for the land at serial no. 210/2 has been shown in the balance sheet under the head deposits and advances and the amount has not been debited to the P & L account. Therefore, the provision of section 40A(3) has been wrongly applied by the assessing officer. Considering the above facts that land was not stock in trade as the same was shown in the balance sheet therefore we do not find any infirmity in the decision of Id. CIT(A). Therefore this ground of appeal of the revenue is dismissed.
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