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2021 (7) TMI 447 - AT - Income TaxAssessment u/s 153A - incriminating material found during the course of search or not? - HELD THAT:- Considering the latest judgement in the case of Pr. CIT & Ors. Vs. Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT] come to the conclusion that since the assessment orders in question were concluded and non-abated assessments no addition can be made in the assessment proceedings u/s 153A of the act unless there is any incriminating material found during the course of search. We find no inconsistency in the finding of Ld. CIT(A) quashing the assessment proceedings u/s 153A of the Act since the additions were not made on the basis of any incriminating material found during the course of search. - Decided in favour of assessee. Addition for the pay-in from NBOT - HELD THAT:- So far as first contention of assessee that profit and loss has been shown by the respective clients in their Income Tax returns and the transactions are confirmed by them, we do not find any merit and the same is not accepted at our end because when any new client is added by a member of NCDX/NBOT, complete KYC is done and all the documentary evidence in support of identity, PAN No., Address are taken. Details of bank account are also available. Yearly confirmation also taken from the clients since the accounts of the members of such exchange are subject to audit by the exchange also. Second contention of assessee that Ld. AO should have taken the figures of Pay-in and pay-out from NBOT, in entirety, certainly has a merit in it. When the Ld. Assessing Officer was not able to lay hand on the documentary evidence to satisfy himself about the fact that profit and loss earned by various clients are genuine and have been shown in their regular return of income, he resorted to complete the assessment on the basis of the figures of pay-in from NBOT. AO however did not considered the figure of pay-out. This action of the Ld. Assessing Officer was not justified as he cannot pick and choose the figures at his/her pleasure. Once it was decided to make the addition on the basis of gross transactions with NBOT then Ld. Assessing Officer was bound to consider both the figures of pay-in and pay-out. Cumulative amounts for the years under appeal are negative and thus, no addition was called for A.Ys. 2007-08 & 2008-09 based on the transactions with NBOT as observed in the assessment order. Similar finding has been given by the Ld. CIT(A) in this regard which thus needs no interference and the same stands confirmed. Accordingly grounds of appeal raised by the Revenue dismissed.
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