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2024 (5) TMI 483 - ITAT RANCHIAssessment u/s 153A/153C - Addition u/s 68 - unexplained unsecured loan - assessee had not discharged his onus - additions made are in reference to material found and seized from the premises of the third persons in their respective search operations - CIT(A) deleted addition - HELD THAT:- It will be important to note that section 292C of the Act provides for a presumption that the documents, assets, books of account, etc found at the time of search in the premises of a person is always presumed to be belonging to him/them unless proved otherwise. The presumption derived under this section is a rebuttable presumption. Thus, the person on whom such a presumption is drawn, has got every right to state that the said document does not belong to him/them. AO, if he is satisfied with such explanation, has got recourse to proceed on such a person in terms of section 153C of the Act. In the present case, the seized documents used by the AO for making the additions u/s 153A while making assessment of the assessee were found and seized from the third persons as noted above. Thus, the only legal recourse available to the Revenue is to proceed on the assessee in terms of section 153C of the Act. Whether the addition can be made u/s 153A in an unabated year, in absence of incriminating material found and seized in the course of search conducted on the assessee, for the additions made by the AO? - We take note of the recent decision of Abhisar Buildwell Private Limited [2023 (4) TMI 1056 - SUPREME COURT] wherein the assessment framed u/s. 153A of the Act are liable to be quashed where additions have been made without reference to any incriminating material found in the course of search relating to the addition so made. There is no reference to any incriminating material found and seized during the course of search from the premises of the assessee in his search, in respect of the additions made. It is also undisputed that the year under consideration is an unabated year, considering the date of conduct of search within the meaning of section 153A of the Act. Admittedly, no incriminating material has been referred which was found in the course of search of the assessee for the impugned assessment year, thus no addition could be made. Decided in favour of assessee.
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