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2020 (12) TMI 111 - AT - Income TaxAssessment u/s 153C - HELD THAT:- As relying on Shri. Panati Vittalnath Reddy Vs DCIT [2020 (3) TMI 572 - ITAT BANGALORE] uphold the validity of assessment u/sec 153C of the Act and dismiss this ground of appeal of the assessee. Estimation of business income by the AO @12% of gross receipts - AR’s contentions are that the assessment has not abetted since the time limit for issue of notice under section 143(2) of the Act expired before date of search - HELD THAT:- There is no addition made under section 153C of the Act as the assessment is not abated on the date of search and partly allow the appeal of the assessee. Restrict the estimation of income @ 8% of gross receipts and partly allow the grounds of appeal of the assessee. Addition being 1/3rd of the cash seized at the time of search - HELD THAT:- As assessee has cash withdrawals prior to the date of search. Therefore, the AO is not justified in making addition - we direct the AO to delete the addition and allow this ground of appeal of the assessee. Addition being 1/3rd of the gold seized at the time of search - HELD THAT:- In the present case, the assessee has disclosed 329 grams jewellery purchased in A.Y. 2011-12 and 60 grams of jewellery received during marriage and the total aggregating to 379 grams. We find the coordinate bench of tribunal has dealt in the case of Shri Panati Vittalnath Reddy VS DCIT [2020 (3) TMI 572 - ITAT BANGALORE] has deleted the addition - The assessee is owning the jewellery aggregating to 389 grams and supported with the evidence. We are of the view that no addition can be sustained.
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