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2021 (11) TMI 533 - AT - Income TaxValidity of Assessment u/s 153C - Addition on account of forfeited amount of customers. - HELD THAT:- The undisputed fact is that return u/s 139 of the Act was filed on 15.10.2010 and notice u/s 153C of the Act was issued on 05.02.2015. This means that the assessment for A.Y 2010-11, which is the year under consideration, has attained finality and did not abate. The ratio laid down by the Hon'ble Jurisdictional High Court of Delhi in the cases of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] and Meeta Gutgutia [2017 (5) TMI 1224 - DELHI HIGH COURT] squarely apply which means that the addition could be made only in respect of the issue in respect of which incriminating material was found. Even if we consider the list of allottees whose bookings were cancelled as mentioned elsewhere, the date of advance received mentioned therein do not pertain to the A.Y under consideration. We are of the considered view that the decision of the Hon'ble Supreme Court in the case of Singhad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] also apply on the facts of the case wherein it has been held that if there is no incriminating material relating to a particular year, assessment of that year could not be reopened. This view has been reiterated by the Hon'ble Jurisdictional High Court in the case of PCIT Vs. SMC Power Generation Ltd. [2019 (7) TMI 1393 - DELHI HIGH COURT] Assuming that there is a substantial time gap between the date of advance received and date of cancellation of the bookings, this fact may raise a strong presumption on cessation of liability, but even this presumption cannot justify the assessment u/s 153C of the Act which has to be based upon incriminating material found at the time of search as per the ration laid down by the Hon'ble Supreme Court and the Hon'ble Jurisdiction High Court of Delhi [supra]. We, therefore, do not find any error or infirmity to interfere with the findings of the ld. CIT(A). Ground raised by the Revenue stand dismissed.
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