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2022 (1) TMI 478 - ITAT JAIPURValidity of proceedings u/s 153C - incriminating material found during the search or not? - unaccounted capital deployed by the assessee - transactions found on cloud data - addition of unexplained unaccounted capital, advances and interest earned were on the basis of incriminating seized data - HELD THAT:- Pursuant to search action in case of M/s Manglam Group, the action was taken in the hands of the assessee u/s 153C of the Act based on transactions in “N Trading Company” found on cloud data found and seized during the course of search and the assessment was completed u/s 143(3) r/w 153C wherein addition on account of unaccounted capital employed in various projects of the Manglam Group and addition on account of interest earned on such capital employed were made by the AO. The fact that the order of the Settlement Commission has been challenged by the Revenue by way of writ before the Hon’ble Rajasthan High Court and similarly, the fact that another set of writ petitions have been filed before the Hon’ble Rajasthan High Court against the decision of the Coordinate Benches in case of Shri Jugal Kishore Garg [2021 (5) TMI 814 - ITAT JAIPUR] cannot be the basis for not following the decision so passed by the Coordinate Benches in aforesaid case as nothing has been brought on record in terms of the specific grounds basis which the findings in aforesaid orders have been challenged by way of writ petition and secondly, whether the order of the Settlement Commission and that of the Coordinate Benches have been stayed by the Hon’ble Rajasthan High Court or not. Where the decision of the Coordinate Bench is not acceptable to the Revenue, the Revenue is well within its right to pursue the matter before the Courts and however, till such time, the order of the Coordinate Bench is not stayed or overruled by the Courts, the assessee is well within his rights to draw support from the said decision. Where the matter is adjudicated by the Hon’ble Rajasthan High Court in favour of the Revenue, the Revenue is not without recourse and is free to take action as per law. Therefore, following the principle of consistency, where the Coordinate Jaipur Benches have taken a view in the matter under identical set of facts and circumstances of the case and no restriction has been placed by the Courts in terms of effect and operation of the said order of the Coordinate Benches including following the same in other cases as facts and circumstances so justify as in the instant case, we see no justifiable reason to deviate and take a different view in the matter and addition so made in the hands of the assessee is hereby held to be rightly deleted by the ld CIT(A) and we hereby affirm his findings in this regard. The grounds of appeal so taken by the Revenue are thus dismissed.
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