TMI Blog2011 (6) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... d of by way of remand - ITA No.1115 of 2009 with ITA No.1122 of 2009 - - - Dated:- 3-6-2011 - MR. JUSTICE A.K. SIKRI, MR. JUSTICE M.L. MEHTA, JJ. For Appellant: Ms. Prem Lata Bansal, Sr. Advocate with Mr. Deepak Anand, Advocate. For Respondent : Mr. Ajay Vohra with Ms. Kavita Jha and Mr. Somnath Shukla, Advocates. A.K. SIKRI, J. 1. On 18.05.2001, ITA No.1115 of 2009 was admitted on the following substantial question of law: Whether order passed by ITAT is perverse in law and on facts when it deleted the addition of ₹ 92,29,561/- ignoring the material fact that said concern was a dummy concern and that the money was reflected in the regular books of accounts though found during the course of search and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various evidences listed in detail in the case of Shri Rajesh Khurana. In the said order, passed on 27.02.2004, it was held that M/s Globe Meditech is, in fact, a dummy concern of Shri Mukesh Luthra, but operated in the name of Shri Rajesh Khurana. The AO reproduced the entire assessment order of Shri Rajesh Khurana in the assessment order for the present two assessment years in the name of the assessee. The AO added the income of ₹ 92,29,561/- in Assessment Year 2001-02 and ₹ 66,87,523/- in Assessment Year 2002-03 in the hands of the assessee on substantive basis which were added in the hands of Shri Rajesh Khurana on protective basis. The assessee carried the matter in appeal before the CIT (A) in both the years. 5. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id findings of the CIT (A) deleting the addition for both the assessment years. The Tribunal has repelled the challenge laid by the Department concurring with the opinion of the CIT (A) that the matter could be gone into and examined in the course of block assessment and addition could be made in those proceedings if the AO was in a position to establish that M/s Globe Meditech was a dummy concerned of the assessee. For this reason, the Tribunal did not go into the merits. 7. It is in this backdrop the issue that has arisen for consideration is whether addition could be made in the regular assessment proceedings as done by the AO or it could be the subject matter of block assessment proceedings alone. 8. In an endeavour to demonstrate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 141], wherein it is held that the block assessment under Chapter XIV of the Act is not intended to be a substitute for regular assessment. It was also contended that unless and until the transactions were examined in the hands of M/s Globe Meditech, the AO could not have made any additions in the hands of the present assessee, Shri Mukesh Luthra. She argued that in a sense, in the case of the present assessee, the AO has only lifted the veil and found out that M/s Globe Meditech actually belonged to the assessee and not Shri Rajesh Khurana. Otherwise, all the entries have been recorded in the books of account maintained in a regular manner by M/s Globe Meditech. Therefore, the AO was justified in making the additions in the regular assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not the real, viz., that M/s Globe Meditech is not owned/controlled by Shri Rajesh Khurana but is a dummy concern of the respondent assessee. Such an allegation raised by the Revenue is sought to be substantiated by documents alleged to be found during the course of search at the premises of the respondent assessee. In that view of the matter, such addition, if otherwise sustainable, could only be made in the block assessment proceedings. 11. We have considered the respective submissions. 12. We are of the firm view that the view taken by the Tribunal is not proper in law. Learned Counsel for the Revenue is right in her contention that it is not a case where any evidence was unearthed during the course of the search. In fact, it was d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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