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2022 (5) TMI 152 - AT - Income TaxAssessment u/s 153A pursuant to search - Additional income as offered before settlement commission - subsequent to search action assessee has disclosed additional income before ITSC - AO observed that Assessing Officer he is entitled to use all the material filed before ITSC for the purpose of completing the assessment and even without incriminating material, addition can be made since assessee has offered additional income before ITSC - CIT(A) sustained the additions made by the Assessing Officer by applying the provisions of section 245HA - HELD THAT:- It is fact on record AO relied on the informations submitted before ITSC which in fact is only voluntary disclosure of adhoc expenses in order to avoid unnecessary verification and cumbersome exercise of following up with the Tax Authorities. Since settlement commission has rejected the application of the assessee, now assessee retracts the submissions made before settlement commission. The Assessing Officer now relying on the adhoc disclosure before settlement commission in order to make additions, which in our considered opinion is not proper. As Assessing Officer can use all the material which is submitted before settlement commission and Assessing Officer can make the addition based on the proper evidences on concealment of income or any evidences which proves that assessee has not disclosed its proper income. In the given case, it is also fact on record that in the search, no incriminating material was found and no other material available before the Assessing Officer to sustain the addition except relying on the voluntary disclosure before ITSC. As relying on Anantnadh Constructions and Farms (P.) Ltd. [2017 (5) TMI 1692 - ITAT MUMBAI] we are inclined to delete the additions made by the Assessing Officer by solely relying on the information submitted before ITSC without there being any material in support of proposed addition. Accordingly, ground No. 1 and 2 are allowed. Deduction on account of education cess on the tax payable by the assessee - HELD THAT:- We observe that the Hon'ble Jurisdictional High Court has considered this issue in detail in the case of Sesa Goa v. JCIT[2020 (3) TMI 347 - BOMBAY HIGH COURT] and held in favour of the assessee.
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