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2021 (10) TMI 1147 - AT - Income TaxAssessment u/s 153C - Whether no addition/disallowance can be made in absence of any incriminating material found as a result of search and seizure operation? - HELD THAT:- As on the date of search and seizure operation, assessments for the impugned assessment years have not abated. A perusal of the assessment orders would reveal that the various additions/disallowance made by assessing officer, such as, disallowance of depreciation, cash credits, 14A disallowance, etc. are not based on any incriminating material found as a result of search. At least, in the body of the assessment orders the assessing officer has not made any observation to demonstrate that the additions/disallowances made are with reference to incriminating material found as a result of search. On a specific query from the bench, learned departmental representative while accepting that the assessing officer has not referred to any incriminating material for making additions also could not bring to our notice any incriminating material on record which can be even remotely connected to the additions made by the AO. As per the ratio laid down in case of CIT vs Continental Warehousing Corporation and Another [2015 (5) TMI 656 - BOMBAY HIGH COURT] in a case where on the date of search and seizure proceedings the assessment has not abated, no addition can be made in absence of any incriminating material - No infirmity in the decision of Commissioner (Appeals) in deleting the additions made by the assessing officer - Decided in favour of assessee.
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