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2020 (9) TMI 909 - AT - Income TaxDisallowance u/s. 14A - assessee had earned share of profit from the firms which was exempt u/s. 10(2A) - AO disallowed expenses incurred towards earning exempt income from the investment made in the partnership firm - HELD THAT:- As observed that assessee's own fund as well as interest free fund were more than investment made in partnership firm, therefore, disallowance on account of interest u/s. 14A is not sustainable in view of the decision of SHRI SURESHBHAI RANCHHODBHAI PATEL VERSUS ACIT, CIRCLE-12, AHMEDABAD [2015 (6) TMI 1208 - ITAT AHMEDABAD] we set aside the issue to the file of assessing officer for re-computing the disallowance of interest after excluding owned funds and interest free funds as directed above in the finding of Co-ordinate Bench in respect of disallowance u/s. 14A for the A.Y. 2012-13 to 2014-15. Assessment u/s 153A - incriminating material found during search in the case of unabated assessment u/s. 153A(l)(b) - HELD THAT:- In the case of DCIT Central Circle Agra vs. Gupta Academic Pvt. Ltd. [2010 (6) TMI 883 - ITAT AGRA] has held that the documentary evidences were seized in the case of the search but in fact they were impounded in the course of survey in the premises of the assessee hence the very basis assuming jurisdiction r.w.s. 153C becomes untenable, therefore, the very order passed u/s. 153A is held to be void. In the light of the above facts and findings and judicial pronouncements, we consider that addition of ₹ 1.8 crores made in the unabated assessment u/s. 153A of the Act on the basis of document impounded during the course of survey at the associated premises of the firm is not valid, therefore, we set aside the order of ld. CIT(A) on this issue and allow the appeal of the assessee. Since we have quashed addition made in the assessment framed u/s. 153A of the Act based on the document found and impounded during survey u/s. 133 A of the Act, therefore, we do not find any need to adjudicate the remaining grounds of appeal on merit. - Decided in favour of assessee.
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