TMI Blog2017 (3) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... PER H.S. SIDHU : JM This Appeal is filed by the Assessee against the Order dated 24.12.2013 of the Ld. CIT(A)-XXXIII, New Delhi relevant to assessment year 2006-07 on the following grounds:- 1. That having regard to the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in confirming the action of AO in making disallowance of a sum of ₹ 14,19,644/- under provisions of the section 40A(3) of the Income Tax Act, 1961. 2. That having regard to the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in assuming jurisdiction to pass impugned assessment order under section 153A, more so in making impugned disallowance which ought n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, exchange, lease, mortgage, hire, lands or immovable or movable property and real estate promotion. During the FY 2006-07, the assessee company has made purchases of land aggregating to ₹ 3,28,05,140/- from various persons. Out of the said payment, an amount of ₹ 18,50,000/- has been paid to various persons in cash. Since, the payments in cash have been made in excess of the limit prescribed u/s. 40A(3) of the Income Tax Act, the explanation of the assessee was sought and the in response to the same, assessee filed the written explanation on 31.12.2012. After considering the same, AO observed that since the assessee made the payments aggregating to ₹ 18,50,000/- to various persons in cash during the FY 2006-07, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a copy of ITAT, E Bench, New Delhi decision dated 8.8.2016 in the case of M/s Manas Dwellers Pvt. Ltd. vs. DCIT for the AY 2006-07 passed in ITA No. 2405/Del/2014 by which the issue in dispute is squarely covered. 6. 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. Hence, the appeal of the Assessee may be dismissed. 7. We have heard both the counsel and perused the relevant records available with us, especially the orders of the revenue authorities and the cases referred by the Ld. Counsel of the Assessee in the shape of Paper Book. We find that the additions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 8. Respectfully following the precedent of the Hon ble Jurisdictional High Court in the case of CIT vs. Kabul Chawla, as aforesaid, we allow the appeal of the Assessee, because AO has completed the assessment and made the addition in dispute without any incri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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