TMI Blog2016 (6) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to any seized material or other material for the year under consideration having being found during the course of search in the case of assessee, leave alone the question of any incriminating material for the year under appeal. Therefore, in our considered opinion, the action of the AO is based upon conjectures and surmises and hence, the additions made on the assessed bogus purchases is not sustainable in the eyes of law, because this issue in dispute is now no more res-integra in view of decision of CIT vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT ] - Decided in favour of assessee - I.T.A. No. 1462 & 1463/DEL/2014 - - - Dated:- 27-5-2016 - Shri H. S. Sidhu, Judicial Member And Shri O. P. Kant, Accountant Member For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the AO on account of alleged bogus purchase is beyond the jurisdiction of provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 2. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of ₹ 1,89,64,850/- made by the AO on account of alleged bogus purchases. The assessee craves leave to add one or more ground of appeal, or to alter / modify the existing ground before or at the time of hearing of appeal. The aforesaid ground are without prejudice to each other. ITA No. 1462/DEL/2014 - ASSESSMENT YEAR (2006-07) 4. The brief facts of the case are that the assessee firm is engaged in the business of manufacturing and export of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer and the case was discussed. Thereupon, the assessment was completed in terms of an order u/s 153A of the Act read with section 143(3) of the Act dated 22.03.2013 at a total income of RS.7,96,50,433/- as against the returned income of ₹ 6,29,87,718/- wherein the Assessing Officer made an addition of ₹ 1,66,62,715/- on account of bogus purchases made through accommodation entries. 5. Against the aforesaid assessment order dated 22.3.2013, assessee preferred an appeal before the Ld. CIT(A), who vide impugned order dated 20.1.2014 has partly allowed the appeal of the asseseee. 6. Aggrieved with the order of the Ld. CIT(A), the Assessee is in appeal before the Tribunal. 7. At the threshold, Ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Nikunj Exmp Enterprises Pvt. Ltd. (Bombay High Court.) 2013 (1) TMI 88 - Punjab Metal Store vs. ITO (ITAT, Delhi) ITA No. 1612/Del/2015 (AY 2006-07) dated 2.12.2015. - Radhey Sham Co. vs. ITO (ITAT Delhi) ITA No. 1429/Del/2015 (AY 2006-07) dated 30.11.2015. - Unique Metal Industries vs. ITO (ITAT Delhi) ITA No. 1372/Del/2015 (AY 2006-07) dated 28.10.2015. 7.1 At the time of hearing, Ld. DR relied upon the order of the authorities below and stated that the provision of section 153A has rightly been applied in the case of the assessee on the material available with them. 8. We have heard both the counsel and perused the relevant records available with us, especially the orders of the revenue authorities and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 709 and 713 of 2014 of decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six Ays immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.On the date of the search the said assessments already stood completed. Since no incriminating material was unearthed during the search, no additions could have been made to the income already assessed. 9. Respectfully following the precedent of the Hon ble Jurisdictional High Court in the case of CIT vs. Kabul Chawla, as aforesaid, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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