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Since no incriminating material was unearthed by AO during the course of search operation under section 132, therefore no addition could be made during the relevant assessment year under section 153A. Mona Agarwal & Anr. v. ACIT
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Moreover, addition was made only on statement of Sh. VK without providing copy of same and without providing any opportunity to assessee to cross examine same, which was in violation of principle of natural justice and against law laid down by Supreme Court of India in case of Andaman Timber vs. CIT—Therefore, in present case, addition made by AO on basis of statement of Sh. VK was deleted
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Unless corroborative evidence is found during course of survey, search & seizure, addition cannot be made merely on statement recorded.
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the assessments which have already attained finality and does not get abated, then they have to be assessed on the basis of the incriminating material found during the course of search. The reason being that the assessments which are pending and get abated, the entire income has to be determined which includes material already on record and also the material found as a result of search. DCIT v. United Stock Exchange of India Ltd.
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If a decision is challenged before the first appellate authority both on the issue of validity of jurisdiction as well as merits of the case, the adjudication on validity of reopening can by no stretch of imagination be liable for rejection on the ground that the assessment has been decided in favour of the assessee on merits. If the order is not so kindly take the ground in the appeal / cross objection to higher authority so that the higher authorities will have the benefit of the decision on other points also, if the necessity arises as otherwise
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If any information belonging to an assessee found during course of search at another party and Ld AO initiated proceedings u/s 147/148 then the re-assessment proceedings passed u/s 148 shall not stand and assessment framed by AO is null and void as the correct course of initiation of proceedings is 153C and not u/s 147/148
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For the purpose of carrying forward the loss in terms of section 72 read with section 80 of the Act, in a case where search operations have been conducted under section 132 of the Act, the time to file the return within the meaning of section 139(3) of the Act has to be regarded as the reasonable time afforded by the consequent notice under section 153A(1)(a) of the Act.
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When search operations are conducted under section 132 of the Act, the obligation of the assessee to file any return remains suspended till such time that a notice is issued for such purpose under section 153A(1)(a) of the Act. If the return is filed by the assessee within the reasonable time permitted by such notice under section 153A(1)(a) of the Act, such return would then be deemed to have been filed within the time permitted under section 139(1) of the Act for the benefit under section 139(3) of the Act to be availed of by the assessee.
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The consideration that the loss in any year may be carried forward to the subsequent year and set off against the profits and gains in the subsequent year is a question that has to be determined by the assessing officer who deals with the assessment of the subsequent year.
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Income—Unexplained cash credits— Assessee raised share capital and share premium during year under consideration- There cannot be any addition u/s 68 merely because assessee could not produce directors of share subscribing companies -If all necessary ingredients of s. 68 had been duly complied with by assessee and notices issued u/s 133(6) have been duly complied with. Revenue’s appeal dismissed