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2021 (6) TMI 949 - AT - Income TaxAssessment u/s 153A - bogus LTCG on sale of shares - Whether incriminating material was found at the premises of the assessee? - HELD THAT:- We find no cogent document forthcoming from the Revenue controverting such statement made by Shri Shirish Chandrakant Shah. Therefore, nowhere in the material as referred by the Ld. AO in the assessment proceeding practically proves that there was any relation between the said Shri Shirish C. Shah and the appellant - AO’s order that the statement of Mr. Damodar Attal has through been relied upon by him but it is a fact the Shri Damodar Attal has never admitted such transaction of shares of the said company made by the appellant or his group as bogus in nature. Furthermore, neither any incriminating material was found at the premises of the assessee which could prove that the appellant at any stage obtained alleged bogus LTCG on sale of shares of the said company from Shirish Chandra Shah or his group. No such mentioning in any document found during search at the premises of the assessee is available on record which indicates any nexus with transaction carried out by the appellant in such shares of the Chandini Textiles & Engineering Ltd. nor does it suggest accommodative entries ever. Therefore, it is a fact that no documents found during the course of search from the premises of the appellant which could be terms as incriminating in nature as prescribed under Section 153A of the Act as already taken care in SMT. SONAL UDAY VORA AND (VICE-VERSA) [2020 (12) TMI 350 - ITAT AHMEDABAD] The Revenue before us has failed to draw our attention to any material which is incriminating in nature found during such course of search at the premises of the assessee and therefore, respectfully relying upon the judgment passed by the Co-ordinate Bench and the issue involved in the common search proceeding in our considered opinion the assessment order passed under Section 153A is beyond the ambit, scope and purview of Section 153A. Keeping in view of the different pronouncement made by different judicial forums including the Jurisdictional High Court in the case of CIT vs. Saumya Construction Pvt. Ltd. [2016 (7) TMI 911 - GUJARAT HIGH COURT] and the judgment passed by the Hon’ble Delhi High Court in the matter of CIT (Central)-III vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] as already discussed by the Co-ordinate Bench in IT(SS)A No. 179/Ahd/2018, we find no merit in disallowing the claim of exempt long-term capital gain on the count of undisclosed income. The same is not sustainable in the eye of law in the absence of any incriminating documents found during the search which has properly considered by the Ld. CIT(A). - Decided against revenue.
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