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2023 (12) TMI 92 - ITAT MUMBAIValidity of assessment made u/s 153C - reliance on statement recorded u/s 132(4) of the Act and without and any incriminating material - addition of unexplained cash credit u/s 68 towards the share premium received from around 17 entities - Share Premium received from different entities was a mere sham transaction as one of the Directors of the company has in his oath during the search proceedings stated that he was not aware of any transaction in the assessee company - AO held that the adverse inference has been drawn as per section 114 of Indian Evidence Act where the assessee has failed to furnish explanation or documentary evidences in support of its claim CIT(A) has deleted the impugned addition made u/s 68 of the Act on the ground that no addition can be made in the absence of any incriminating material found during the course of search in the case of unabated assessment - HELD THAT:- We find no infirmity in the finding of the Ld. CIT(A) in this context. It is also evident that as per the provisions of section 153C it is mandatory that the Ld. AO of the searched person should have recorded satisfaction. In the present case in hand it is evident that AO was unable to conclusively state that satisfaction note was duly recorded. In the case of failure to prove that the AO has recorded satisfaction, we do not find any justification in upholding the addition made by the Ld. AO and hence the assessment order is in itself void abintio. Therefore, the order of Ld. CIT(A) in deleting the impugned addition is upheld. Appeal filed by the revenue is dismissed.
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