https://www.taxtmi.com/caselaws?id=775593 The ITAT Chennai held that the AO's disallowance of interest on borrowed capital under section 153A r.w.s. 143(3) was unsustainable due to the absence of any incriminating material found during the search under section 132. Since no such material was cited to justify the addition, the AO acted without jurisdiction, rendering the assessment order invalid. Relying on Supreme Court and HC precedents, the tribunal affirmed that in an unabated assessment, additions under section 153A must be based on incriminating material discovered during the search. Consequently, the appeal was allowed, and the disallowance was set aside. en-us Tue, 03 Jun 2025 00:00:00 +0530 Mon, 28 Jul 2025 08:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775593 The ITAT Chennai held that the AO's disallowance of interest on borrowed capital under section 153A r.w.s. 143(3) was unsustainable due to the absence of any incriminating material found during the search under section 132. Since no such material was cited to justify the addition, the AO acted without jurisdiction, rendering the assessment order invalid. Relying on Supreme Court and HC precedents, the tribunal affirmed that in an unabated assessment, additions under section 153A must be based on incriminating material discovered during the search. Consequently, the appeal was allowed, and the disallowance was set aside. Case-Laws Income Tax Tue, 03 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775593