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The Tax Publishers2020 TaxPub(DT) 0370 (Guj-HC) INCOME TAX ACT, 1961
Section 153A
Where proceedings were initiated under section 153A and nothing incriminating was found or recovered from assessee, and source of the loan was also explained by assessee before Tribunal, therefore, appeal of Revenue was dismissed.
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Search and seizure - Assessment under section 153A - No incriminating material found -
A search was undertaken and proceedings were initiated under section 153A. In the course of assessment proceedings, AO took notice of the fact that assessee had obtained a loan of Rs. 7.30 Crore from a company for which no explanation was provided by assessee. Thus, AO made addition under section 68 on account of unexplained cash credit. Held: Proceedings were initiated under section 153A and nothing incriminating was found or recovered from assessee, and in the course of assessment proceedings, AO took notice of fact that assessee had obtained a loan from a company. AO got the matter inquired through the Investigating Wing and the inquiry revealed that loan was, in fact, advanced. The source of loan was also explained. Tribunal also noted that no incriminating document was found and seized from the premise of the assessee during assessment proceedings. Therefore, appeal of Revenue was dismissed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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