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Commissioner Of Income Tax (Central) ... vs Kabul Chawla on 29 March, 2016

5.0 We have heard the rival submissions and perused the material available on record. The only question requiring consideration is whether the AO could have made any addition de hors the material found during the course of the search in an assessment year which have not abated. In the present case, it is 5 ITA No. 4134/D/2016 ASSESSMENT YEAR 2008-09 an admitted fact that on the date of the search i.e. on 19th November, 2010 the assessment for the year under consideration was not pending. It is also an admitted fact that nothing incriminating was found during the course of the search which could be related to the disallowance made by the AO u/s 14A of the Act. The Assessment Order does not make any reference to any incriminating material found and seized during the course of search which could establish some kind of nexus with the 14A disallowance. At this juncture, reference may be made to the judgment of the Hon'ble Delhi High Court in the case of Kabul Chawla (Supra). In Para 37 of this judgement, the Hon'ble Delhi High Court have summarized the legal position as under:
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