Search and seizure operation was conducted upon the assessee. Pursuant to the search action, notice was sent to the assessee under S. 153A of the Act, requiring the assessee to submit its return. In reply to the said notice, assessee declared a net income of Rs. 84,740 as against the returned total income of Rs. 74,831. The Assessing Officer noted that the assessee had received share application money and premium totaling to Rs. 1,11,00,000 from three companies but the required documents evidencing creditworthiness, genuineness and identity of the investors were not furnished. The assessment was completed at an income of Rs.1,11,84,740 after making an addition of Rs. 1,11,00,000 under section 68 on account of bogus share capital. The CIT (A) deleted  the addition on the ground that the additions made by the AO were  beyond the scope of S. 153C because no incriminating material or evidence had been found during the course of search so as to doubt the transactions. In the entire assessment order, the Assessing Officer had not referred to any seized material or other material for the year 2009-10 having being found during the course of search in the case of the assessee. Therefore the action of the AO was based upon conjectures and surmises and the addition made was not sustainable in the eyes of law. (AY.2009-10)