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2020 (8) TMI 718 - AT - Income TaxAssessment u/s 153A - Addition on account of unexplained sundry creditors - treated as income of the assessee u/s 68 - HELD THAT:- The said amount was received by the assessee from different parties which have duly been reflected in assessee`s books of accounts. During the assessment proceedings the assessee submitted monthly summary ledger for all the parties from whom payments were received. All the credit balances have been duly reflected in assessee`s books and amounts were received in due course of business. As mentioned, the assessee is a property developer and agent engaged in buying, selling and developing of the plots and properties. The payments received by the assessee were the advance from the parties. Complete detail of the same was filed before Ld. AO during the course of assessment. AO while making this addition u/s 153A has nowhere referred to any seized or incriminating material or document. We rely on the judgment of CIT vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] and therefore we are of the view that no addition can be made in an unabated assessment in absence of any incriminating material seized as a result of search.That being so, we decline to interfere in the order passed by the ld. CIT(A), his order, on this issue, is hereby upheld and ground no. 1 raised by the revenue is dismissed. Admission of additional evidence - CIT-A admitting certain fresh evidence or materials produced by the assessee in contravention of the provisions of Rule 46A of I. T. Rules, 1962 - HELD THAT:- Two additional grounds, the ld CIT(A) had rejected the ground No.1 and did not admit it, hence there is no question of additional evidence. Ground No.2 raised by the assessee during the appellate proceedings relates to charging of interest under section 243A and 234B of the Act. Since it is a legal issue and emanated from assessment order, hence it can not be treated as additional evidence. Taking into account the factual position narrated above there is no any violation of the provisions of Rule 46A of the Income Tax Rules, therefore we dismiss ground No.2 raised by the Revenue. Disallowance of expenses claimed under the head “Purchases & Payment made for plots, lands & building” - HELD THAT:- Copy of audited profit and loss account was filed in which the purchase price of the plots purchased was duly disclosed. The details of purchases and payment details thereof were furnished. The assessee also incurred expenses of₹ 45,90,000/- and claimed under land leveling expenses and a sum of ₹ 51,51,293/- claimed as Boundary Expenses. We note that this being assessment u/s 153A of the Act therefore the addition shall only be made on the basis of incriminating material found or seized. We have mentioned our detailed reasoning in para No. 9 of this order stating that in case of unabated assessment addition should not be made without any incriminating material. That being so, we decline to interfere in the order passed by the ld. CIT(A), his order on this issue is hereby upheld and ground no. 3 raised by the revenue is dismissed.
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