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2017 (12) TMI 1394 - AT - Income TaxAssessment u/s 153A - disallowance u/s 69C - Held that:- CIT(A) has not specified as to what incriminating material was discovered in the search conducted on 21.07.2011. In our considered view, the addition in the unabated assessment can only be made only on the basis of incriminating material for a particular year. Since no incriminating material was seized during the search for the year under consideration, thus, no addition in the unabated assessment can be made. Hence, the assessment order passed by AO by making addition on account of disallowance u/s 69C of the Act in the assessment order passed under section 143(3) rws 153A is invalid. Bogus purchases - estimation of profit - Held that:- Keeping in view of any possibility of the revenue leakage which is very thin in the present case, the disallowance of purchases of steel for Surat- Dahisar and Kolhapur project at 5% of the impugned (disputed) purchases would meet the end of justice. Similar view was taken by Hon’ble Gujarat High Court in CIT Vs Simit P Seth [2013 (10) TMI 1028 - GUJARAT HIGH COURT] Disallowance of depreciation on certain steel material - Held that:- We have noted that we have already held that the assessment order for AY 2008-09 and 2009-10 passed under section 143(3) read with section 153A as invalid, thus any consequence arise thereon has also become invalid. Even otherwise there is no material on record that the information on record that said machine or equipment for which depreciation was claimed is not put to use. The disallowance of depreciation on steel material under consideration is based on the addition on account of said alleged bogus purchase, which we have already deleted. Hence, the disallowance of depreciation is also to be deleted. Addition on ex-gratia payment made to Mr Madhav Hari Kale in cash - Held that:- We have seen that despite explaining the fact that Mr. Madhav H Kale was not in their employment, the assessing officer has not bring any material on record the facts to prove it otherwise. Even before us no contrary material is placed before us or any contrary law is brought in our notice. We have seen that the learned Commissioner (Appeals) granted relief to the assessee after considering the contention of the assessee and the material placed before him. In our view the finding of learned Commissioner (Appeals) is based on record, reasoned one and does not require any further interference at our end. In the result the ground of appeal raised by revenue is dismissed
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