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2020 (12) TMI 826 - HC - Income TaxAssessment u/s 153A - Whether the Appellate Tribunal has erred in law and on facts in holding that the addition and/or disallowance made during assessment under section 153A should be based on incriminating documents or evidences gathered during a search or from a requisition when the only requirement in section 153A is initiation of a search or making a requisition and not presence of relevant evidences/documents? - Tribunal has placed reliance on the decision of this High Court in the case of PCIT Vs. Saumya Construction [2016 (7) TMI 911 - GUJARAT HIGH COURT] for the purpose of addressing the preliminary issue whether the assessment could have been framed under Section 153A in respect of the concluded proceedings in the absence of incriminating materials found during the course of search HELD THAT:- We are of the view that having regard to the facts of this particular case, the reliance placed on the decision of this Court in the case of Saumya Construction could be said to be justified. In such circumstances, this Tax Appeal fails and is hereby dismissed. Revenue invited our attention to certain observation made by the Appellate Tribunal wherein as observed that there is no differentiation found in the intent of the Legislature to discriminate whether the assessments were originally framed under Section 143(1) or Section 143(3) or Section 147 of the Act. According to Mr. Bhatt, this observation made by the Appellate Tribunal is not the correct proposition of law. Mr. Bhatt tried to explain fine distinction between the nature of the assessment under Section 143(1) and Section 143(3) respectively of the Act. Prima facie, we find substance in what has been pointed out by Mr. Bhatt to us. Section 143(1) and Section 143(3) are quite independent, the nature of assessment also differs. In such circumstances, we may only say that we do not agree with such observation made by the Tribunal.
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