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2024 (2) TMI 1330 - AT - Income TaxCondonation of delay in filing the appeal - delay of 326 days - sufficient cause - misguidance of the former Tax Consultant - HELD THAT:- It is always to be kept in mind that the condonation of delay is always a double edged sword, which has sharp edges on both sides and to be handled carefully by any party. - In our considered view, the assessee has demonstrated a reasonable cause for not filing the appeals within the statutory period of limitation, on the mis-representation of former Tax Consultant resulting in passing exparte orders and filing appeals with delay. - Delay condoned. Assessment u/s 153A - unexplained cash credits - incriminating material found in search or not? - Penalty levied u/s 271(1)(c) - HELD THAT:- When an assessment has to be made in relation to the search or requisition u/s 153A of the Act, namely, in relation to material disclosed during the course of search or requisition, if in relation to any particular assessment year, at the same time when there is no incriminating material found, no addition or disallowance can be made in relation to that assessment year in exercise of powers u/s 153A and the earlier assessment shall have to be reiterated. This legal preposition is now settled in the batch of cases namely PCIT, Central-3 -Vs- Abhisar Buildwell Pvt. Ltd. [2023 (4) TMI 1056 - SUPREME COURT] holding that in respect of completed assessments/unabated assessments, no addition can be made by AO in the absence of any incriminating material found during the course of search u/s 132 or requisition made u/s 132A of the Act. We have no hesitation in deleting the additions made on account of unexplained cash credit made by the AO without any incriminating material found during the course of search from the premises of the assessee. Penalty u/s 271(1)(c) - Since the additions made on the quantum appeals for the above assessment years are already deleted vide paragraphs 10 and 11 of this order, consequently the present penalty appeals has no legs to stand and therefore the penalty levied is hereby deleted. Assessee appeal allowed.
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