TMI Blog2014 (10) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of account, the proceedings u/s 153C will continue and the AO will make the assessment afresh in accordance with law - the Revenue’s appeals do not require any adjudication and they are also deemed to be allowed for statistical purposes - The AO will proceed to make the assessment afresh only in the year where proceedings u/s 153C can validly continue. - I.T.A. Nos. 5430 to 5436/Del/2013, C.O. Nos. 83 to 88/Del/2014 - - - Dated:- 10-9-2014 - Shri G. D. Agrawal And Shri H. S. Sidhu,JJ. For the Petitioner : Dr . Sudha Kumari, CIT(DR) For the Respondent : Mr. Kapil Goel, Adv. ORDER Per Bench:- These are the appeals filed by the Revenue and Cross objections filed by the Assessee emanate out of the separate orders passed by the Ld. CIT(A)-II, New Delhi pertaining to respective assessment years. Since some of the issues involved in these appeals as well as cross objections are common, we are therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. The grounds raised in the Revenue s appeal are more or less same except difference in the figures, hence, we are adjudicating the Revenue s appeal with reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any incriminating material found during search are liable to deleted. 4. That in the absence of any incriminating material found during search, the additions made by the AO while completing assessment uls 153C rws 153A/143(3) are unjust, arbitrary, and bad in law and without jurisdiction. 5. That in view of the facts and circumstances of the case CIT (A) has erred in law and on facts in holding that the audited books and transactions through bank notwithstanding, the book results are required to be rejected, since the entries are artificial, sham and not reflective of actual business I commercial transactions. 6. That the CIT (A) has failed to appreciate that on the facts and circumstances of the case, the various observations and findings of the learned assessing officer in the impugned assessment order are irrelevant and vitiated in the law. 7. That in view of the facts and circumstances of the case, CIT (A) has erred in law and on facts in disregarding the purchase, the sales and the expenses claimed by the appellant. 8. That on the facts and circumstances of the case the interest charged u/s 234A and 234 B has been wrongly and illegally charged and in any case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs initiated u/s. 153C of the Income Tax Act, 1961 being illegal, bad in law and without jurisdiction and as such the assessment order passed in consequence thereof is illegal, bad in law and without jurisdiction, barred by limitation and against the principle of natural justice. Ld. Counsel of the assessee further stated that assessment framed is against the scheme of the Act whereby the reassessment u/s. 153C in such cases is to be confined to the additions and disallowances consequent to the material found during the course of the search. The additions which are not based on any incriminating material found during search are liable to be deleted. He also submitted that the revenue authorities have erred in law and on facts in holding that the audited books and transactions through bank nowithstanding, the book results are required to be rejected, since the entries are artificial, sham and not reflective of actual business / commercial transactions. Ld. Counsel of the assessee filed a Paper Book having pages 1 t 27 containing the assessment records etc. and draw our attention towards the Page No. 1 of the same Paper Book viz. Satisfaction Note dated 5.7.2010 for issuing Notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2 from the premises at F-6/5, Vasant Vihar, New Delhi during the course of search conducted u/s. 132 of the I.T. Act, 1961 on 20.10.2008 in the case of Sh. BK Dhingra, Smt. Poonam Dhingra, M/s Madhusudan Buildcon Pvt. Ltd. have been found to belong to M/s Devi Dayal Petro Chemicals Pvt. Ltd., Lane W-17-A, House NO. 18, Western Avenue, Sainik Farm South, New Delhi which has not been covered u/s. 132 of the I.T. Act, 1961. Accordingly, in terms of provisions of section 143C of the Act, notices u/s. 153C are hereby issued for the A.Y. 2003-04 to 2008 09 in the case of M/s Devi Dayal Petro Chemicals Pvt. Ltd.. The case was centralized in the Central Circle-17, New Delhi vide orders dated 14.12.2009 of CIT-IV, New Delhi. SD/- Dated 5.7.10 DCIT, Central Circle-17, New 9.1 It was contended by the learned counsel that the documents mentioned by the Assessing Officer in the satisfaction note i.e. documents at pages 1 to 25 of Annexure A-5 are only the counterfoil of the cheque book which is duly accounted for in the books of account. He had also contended that the counterfoil belonged to the year 2008-09 and, therefore, the proceedings under Section 153C could not have been in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There would be no justification for continuation of the proceedings under Section 153C to which the seized documents do not belong. Therefore, the Assessing Officer will drop the proceedings initiated under Section 153 of the years to which the seized documents do not belong. For the year to which the seized documents belonged, he will verify whether the transaction reflected by the seized documents are duly accounted for in the books of account. If the transactions are duly accounted for in the books of account, as contended by the learned counsel, the Assessing Officer will drop the proceedings initiated under Section 153C. However, if for the year to which the seized documents belonged, the transaction reflected by the seized documents is not recorded in the books of account, the proceedings under Section 153C will continue and the Assessing Officer will make the assessment afresh in accordance with law. Since we have set aside all the years under appeal, the Revenue s appeals on merits do not require any adjudication and they are also deemed to be allowed for statistical purposes. The Assessing Officer will proceed to make the assessment afresh only in the year where proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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