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2021 (12) TMI 258 - AT - Income TaxAssessment u/s 153A - Disallowance of interest - HELD THAT:- Disallowance was made by the ld. AO without making any reference to seized documents found during the course of search. Infact, the ld. AO himself of his order admits that “in the course of assessment proceedings, it is observed that assessee has claimed expenses towards interest expenses and loan processing charges on loan borrowed from M/s. India Bulls Housing Finance Ltd.,” This observation clearly goes to prove that the ld. AO had only sought to re-examine the existing material already available on record while framing the search assessment for A.Y.2011-12 (being the unabated assessment year). The law is now very well settled that unless there is incriminating material found during the course of search, an unabated assessment shall not be disturbed in the search assessment. Reliance in this regard is placed on the decision of the Hon’ble Jurisdictional High Court in the case of Continental Warehousing Corporation [2015 (5) TMI 656 - BOMBAY HIGH COURT] and on the decision in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] In view of the above, we are inclined to allow the additional ground raised by the assessee and direct the ld. AO to delete the disallowance made in respect of interest paid on loan from India Bulls Housing Finance Ltd., Accordingly, the additional ground raised by the assessee is allowed
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