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2020 (2) TMI 1481 - AT - Income TaxValidity of initiation of proceedings u/s.153A - Addition u/s 14A - HELD THAT:- It is not in dispute that as on the date of assumption of jurisdiction by the Assessing Officer u/s. 153A, the assessment for the assessment year 2008-09 was a concluded one and therefore, it does not get abated. It is settled principle of law that in terms of decision of Hon’ble jurisdictional High Court in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT], Chintels India Ltd vs. DCIT [2017 (7) TMI 746 - DELHI HIGH COURT], PCIT vs. Best Infrastructure (India) Ltd. [2017 (8) TMI 250 - DELHI HIGH COURT], PCIT Vs. Meeta Gutgutia, [2017 (5) TMI 1224 - DELHI HIGH COURT], Ld. PCIT vs. Ms Lata Jain, [2016 (5) TMI 1273 - DELHI HIGH COURT] the assessments and reassessments pending on the date of the search shall abate and the total income for such assessment years will have to be computed by the Assessing Officers as a fresh exercise; and that although Section 153A of the Act does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously, an assessment has to be made under this Section only on the basis of seized material. In the absence of any material to the contrary, it is not possible for us to find fault with the findings of the ld. CIT(A) while following the decision of Hon’ble Jurisdictional High Court in the case of Kabul Chawla (supra) to reach a conclusion that the addition made u/s. 14A read with Rule 8D cannot be sustained in the absence of any incriminating material un-earthed during the search proceedings. We, accordingly find the grounds of appeal as devoid of merits and the same are liable to be dismissed and are accordingly dismissed.
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