2022 (9) TMI 464 - ITAT RAIPUR

Assessment u/s 153A - Addition of gross profit on unrecorded sales - HELD THAT:- As on the date of search the assessment in the case of the assessee are unabated, then, in absence of any incriminating material surfacing in respect of the said year, no addition could validly be made by the A.O while framing the assessment u/s.153A - See SMT. SANJANA MITTAL [2019 (3) TMI 1757 - ITAT AMRITSAR], KABUL CHAWLA [2015 (9) TMI 80 - DELHI HIGH COURT], M/S. MURLI AGRO PRODUCTS LTD. [2010 (10) TMI 1052 - BOMBAY HIGH COURT] and CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD., ALL CARGO GLOBAL LOGISTICS LTD. [2015 (5) TMI 656 - BOMBAY HIGH COURT] observed, that where as on the date of the initiation of search and seizure proceedings under section 132 of the Act, no assessment proceedings for the year under consideration were pending, then, in the absence of any incriminating evidence found during the course of search and seizure proceedings no addition/disallowance could have been made in respect of the unabated assessment of the assessee for the said year.

Thus we concur with the claim of the Ld. AR that now when as on the date of the initiation of search and seizure proceedings under section 132 of the Act as no assessment or reassessment proceedings for the years under consideration were pending in its case for AY 2006-07 to AY 2010-11, therefore, in the absence of any incriminating evidence found during the course of search and seizure proceedings for the said years, no addition/disallowance could have been made in respect of the unabated assessment of the assessee for the said respective years.

Unexplained cash credits u/s.68 - When the assessee had discharged the onus that was cast upon it as regards proving the identity and creditworthiness of the share applicant companies, as well as the genuineness of the transactions in question, therefore, no addition of the amounts so received from them could have been made by dubbing the same as unexplained cash credits u/s.68 of the Act, uphold his order to the said extent. The Grounds of appeal of revenue dismissed.

Addition on account of initial unrecorded investment for making unrecorded sales - HELD THAT: No infirmity in the view taken by the CIT(A) who by way of a well reasoned order vacated the additions made by the A.O towards unaccounted income arising from the alleged undisclosed sales for AY 2006-07 to AY 2012-13; as well as the addition of the unexplained investment for carrying out undisclosed sales in A.Y.2006-07 to A.Y.2012-13, uphold her order to the said extent.