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3 orders · Page 1 of 1
The Tribunal held that the assessee should be treated as a firm, allowing deductions for partner salary and interest. It also deleted the addition for unexplained investment after the AO's report clarified the transactions. Furthermore, the disallowance under Section 40A(3) was deleted as there were no cash payments by the firm to partners violating the section.
The Tribunal held that proceedings under Section 263 are not warranted if no incriminating material was found during the search related to the issue being considered for revision. The assessment under Section 153C cannot be deemed erroneous or prejudicial to revenue in such cases.
The Tribunal held that additions under Section 153C cannot be made without incriminating material found during the search. Therefore, the revision order under Section 263 was not sustainable and was quashed.