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2020 (10) TMI 86 - AT - Income TaxAssessment u/s 153C - Addition based on some incriminating material found during the course of search or not? - disallowance on account of additional payment and disallowance u/s 40A(3) - HELD THAT:- When an assessment is initiated u/s 153C of the Act it is necessary that already assessed income can be tempered only when there is some incriminating material which has a capacity of upward assessment of already assessed income. Such is the mandate of the decision of CIT Vs Sinhgadh Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] as well CIT Vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT]. Addition on account of disallowance of additional payment is made without any incriminating material found during the course of search. Same is the case of disallowance u/s 40A(3) - Decided in favour of assessee. Whether the assessment order should have been passed by AO u/s 153C on it has been correctly passed by the assessing officer u/s 143 (3) of the act? - Admittedly, no notice u/s 153C of the Act was issued to the assessee for this assessment year. Instead notice u/s 143(2) of the Act was issued and assessment order was passed u/s 143(3) of the Act. Therefore merely mentioning that order as been passed u/s 153A of that without issuing any notice u/s 153C of the act we are not in a position to hold that the learned assessing officer has passed the assessment order u/s 153A of the act. - Decided in favour of assessee.
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