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2014 (12) TMI 883 - AT - Income TaxAddition of opening balance of cash in hand – Held that:- Search u/s 132 was carried out in Pandey group of cases on 19/04/2006 – as decided in All Cargo Global Logistics vs. DCIT [2012 (7) TMI 222 - ITAT MUMBAI(SB)] - in those AYs where the assessment has not abated, the assessment u/s 153A will be made on the basis of incriminating material found during search - this is not the case of the AO that any incriminating material was found during the course of search for this assessee - The addition has been made on the basis of cash flow statement filed in course of assessment proceedings - such an addition cannot be made in the absence of any incriminating material having been found in course of search because the assessment of this year has not abated – thus, the addition made by the AO is not sustainable – Decided in favour of assessee. Addition on the basis of cash flow statement – Held that:- It is noted by the AO that in response to notice issued u/s 153C, it was submitted by the assessee that original return of income was filed on 31/10/2001, which may be treated as return filed in response to this notice - Hence, in this case also, the assessment has not abated and therefore on the same basis, the addition made by AO is not sustainable – Decided in favour of assessee. Addition of unsecured loans – Held that:- The AO made addition of ₹ 51,000/- in respect of three unsecured loans of ₹ 15,000/- from Ram Babu, ₹ 18,000/- from Shri Surendra Kumar and ₹ 18,000/- from Rajesh Kumar totaling to ₹ 51,000/- on the basis that the assessee could not file confirmation from these persons - the original return was filed on 06/08/2002 - the assessment for this year has also not abated and the addition made by AO is not sustainable because the same is not on the basis of any incriminating material found in search. Addition of amount estimated as cost of boundary wall – Held that:- The AO asked the assessee to explain the source of investment - the basis of making this addition is also not this that any incriminating material was found during the course of search and the same is on the basis of post search enquiry and in such enquiry also, the facts are not brought on record as to whether the flat was purchased along with the boundary wall or the boundary wall was constructed afterwards - the assessment has not abated and no addition can be made except on the basis of any incriminating material found in search - Since no incriminating material was found in search in respect of construction of boundary wall, the addition is not sustainable – decided in favor of assessee.
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