2022 (9) TMI 476

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 3. Brief facts in this case are that there was a search on 15.10.2013. For the impugned assessment year, income-tax return was filed on 11.01.2012 and the same was processed u/s 143(1) of the Act on 13.02.2012, hence assessment was completed before the search. In the assessment after the search u/s 153A, AO made certain additions, one of them was addition u/s 68 of Rs.12,00,000/-. In the assessment order, AO had made the addition by noting that bank statement was found during the search which showed that assessee has received Rs.12,00,000/- and when the assessee was asked to provide the source thereof, satisfactory explanation was not received, hence the addition was made by the AO. Assessee made preliminary objections before the ld. C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d upon the orders of the authorities below. She submitted that assessee has not been able to prove the veracity of the lender as the said person was not found at the stated address. She further doubted that said bank account was duly disclosed by the assessee or not in the return earlier filed. 7. We have heard both the parties and perused the record. Upon careful consideration, we find that it is undisputed that the assessment was completed before the date of search. Nowhere it was the case of the authorities below that the said bank was not earlier disclosed. In these circumstances, by referring to the bank statement of said bank which was already disclosed, additions made cannot be said to be based upon incriminating material found du....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 3.15 crores made by the Assessing Officer u/s 68 and confirmed by the ld. CIT(A) thus was not based on any incriminating material found during the course of search and the same, in our opinion, is not sustainable being outside the scope of section 153A of the Act. Similarly, the disallowance made by the AO and confirmed by the ld. CIT(A) u/s 14A read with Rule 8D in both the years under consideration is also not sustainable as the same is not based on any incriminating material found during the course of search. We, therefore, delete the said additions made in both the years under consideration and allow these appeals of the assessee." 8. We find that the aforesaid case law is fully applicable to the facts of the case. In the orders of....