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2014 (10) TMI 778 - ITAT DELHIProceedings u/s 153A - Search and seizure operation u/s 132 Relevant details for verification of genuineness of expenses submitted or not – partial expenses deleted – Held that:- Following the decision in M/s ALL CARGO GLOBAL LOGISTICS LTD Versus DEPUTY COMMISSIONER OF INCOME TAX [2012 (7) TMI 222 - ITAT MUMBAI (SB)] – revenue have not disputed the fact that assessment proceeding for the year was not pending on the date of search - The AO made disallowance and addition out of total expenses claimed by the assessee without any incriminating material said to be found during the course of search and on the estimate and ad hoc basis - CIT(A) deleted the addition with an observation that when the AO himself has failed to invoke the relevant provisions of the Act to ensure compliance of the directions by the assessee, it may not be a strong basis to make a random estimated disallowance out of expenses debited to the P&L account - The CIT (A) was also justified in holding that no defect or even doubt has been pointed out by the AO with regard to any particular expense to which disallowance could have been pegged and under these circumstances, ad hoc disallowance being without any basis is not sustainable - there was no incriminating material before the AO which was found during the course of search to support the ad hoc disallowance and addition – AO made disallowance and addition during the reassessment proceedings u/s 153A of the Act without any basis and justified cogent reason - CIT(A) rightly deleted the disallowance and addition as per letter and spirit of the relevant provisions of the Act – Decided against revenue.
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