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2022 (3) TMI 296 - AT - Income TaxAssessment u/s 153C - Whether material seized during the course of search show undisclosed income? - HELD THAT:- All documents cannot be considered as incriminating materials on the facts of the case. Insofar as the contention that balance sheet filed for assessment years 2004-2005 and 2005-2006 (as comparative) is different from the balance sheet filed before the AO is concerned, it is relevant to state that whenever there is a change in accounting policy followed by the assessee, the assessee is required to disclose the same in accordance with the Accounting Standard-1 `Disclosure of Accounting Policies’ issued by the Institute of Chartered Accountants of India (ICAI) as applicable then and also required to regroup /reclassify the figures of the previous year so as to make them comparable with current year figures in the financial statements. It is pertinent to state that, the assessee had offered capital gains even after reclassification and it was not disputed by the Assessing Officer in the order dated 28.12.2007. There is no incriminating materials seized during the course of search, which can be linked to the three additions made in the assessment completed u/s 143(3) r.w.s. 153A of the I.T.Act. Hence, in view of the Hon’ble jurisdictional High Court judgment in the case of CIT v. IBC Knowledge Park (P) Ltd. [2016 (5) TMI 372 - KARNATAKA HIGH COURT] and Pr.CIT v. Delhi International Airport Pvt. Ltd. [2021 (11) TMI 928 - KARNATAKA HIGH COURT] these additions cannot be sustained. - Decided in favour of assessee.
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