TMI Blog2017 (4) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... d any infirmity in the order of the ld CIT(A) in holding that there is no incriminating material unearth during the course of search which related to the addition and then deleting the addition. - Decided in favour of assessee - ITA No. 3639/Del/2014 - - - Dated:- 10-4-2017 - SMT BEENA A PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Revenue : Ms. Nirupama Katru, CIT DR For The Assessee : Sh. Sashi Tulsiyan, Adv ORDER PER PRASHANT MAHARISHI, A. M. 1. The revenue against the order of the ld CIT (A)-XII, prefers this appeal, New Delhi dated 18.03.2014 for the Assessment Year 2005-06. 2. The revenue has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case, the ld CIT (A) has erred in holding that the additions made are without any material found during the course of search is without jurisdiction and bad in law. 2. On the facts and in the circumstances of the case, the ld CIT (A) has erred in holding that when an assessment is to be completed u/s 153/153C of the Act; no addition other than the addition based on the seized documents can be made. 3. The ld CIT (A) failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of any incriminating documents. According to him all these transaction are recorded in the regular books of accounts, which are audited. Therefore, he submitted that current year loss is also available for carry forward. In the end, he supported the order of the d CIT (A) citing the various decisions of Hon Delhi high court and also of various tribunals. 6. We have carefully considered the rival contentions and the orders of the lower authorities. Hon Delhi high court in case of CIT V Kabul Chawla 380 ITR 573 ( Del) has held that :- 37. On a conspectus of section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under : (i) Once a search takes place under section 132 of the Act, notice under section 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six assessment years immediately preceding the previous year relevant to the assessment year in which the search takes place. Page No : 0590 (ii) Assessments and reassessments pending on the date of the search shall abate. The total income for such assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowances made by the ld AO. The satisfaction note recorded by the Assessing Officer that is placed at page No. 2 of the paper book speaks that a search and seizure operation was carried at the business premises as well as residential premises of Today Group of cases on 26.11.2009 and was finally concluded on 25.01.2010. During the course of search, following documents belonging to the assessee were found which are as under:- A search and seizure operation was carried at the business premises as well as the residential premises of Today group of cases on 26. 11, 2009 and was finally concluded on 25.01. 2010. During the course of search and seizure operation at the various premises of Today group of cases following documents belonging to M/s New India City Developer Pvt Ltd were found and seized: PREMISE: 48. FRIENDS COLONY EAST, NEW DKUI1 (Party H-l) Party H-l, ANNEXURE A-l: Page No Description 73` Photocopy of Vijaya Bank cheque of Us.4 lakhs dated 5.3.2009 from M.iyfield Projects lo New India City Developer Pvt. Ltd. Premise: 8 ' Floor. Statesman House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II, Sector-51. Gurgaon (PARTY - H-l 7) PARTY - H-17, ANNEXURE A-4: Page No Description 23-41 Copies of development agreement dated 03-03-2007 between Mordhwaj Singh, Vikramjeet Singh. Ram Narayan Singh, Bheem Singh and New India City Developers Pvt. Ltd B-44, IInd Floor, Jangpura B regarding development of housing/ industrial/ IT Park/ Cyber Park on land admeasuring 35.2062 acres, village Bahrampur, Gurgaon for a sum of ₹ 10 lac per acre totaling ₹ 3,52,05,0007- as non refundable amount and the developer agreed to pay 15 lac per acre totaling ₹ 5,28,09000/- to (he owners as refundable amount. Premise: 311, 3rd Floor, Statesman House, Barakhnmba Road, New Delhi (PARTY - H-22) PARTY - H-22, ANNEXURK A-5: Page No Description 33-38 43-48 113-118 Papers showing list of share holders, directors and minutes of the meeting of directors; provisional balance sheet P L account etc of Ultra Home Construction Pvt. Ltd: New India City Developer Pvt Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of New India City Developers Pvt Ltd, hence the same has been found at the premises of Mr. G.K.Gambhir. The page bearing no 155 Party - H-2 Annexure A-l (A.Y.2008-09) pertains to receipt of demand draft of ₹ 1,33,08,0007- issued by Mr. Mordhwaj Singh. The same has been duly accounted for in the books of account of the company on dated 31.03.2007, statement of account of Mr. Mordhwaj Singh in the books of assessee company showing the said ledger entry is enclosed herewith.The source of these payments is from the company 's own funds as well as advance taken against the project and have been duly reflected in the balance sheet of the assessee company. The said payment was made to Mr Mordhwaj against the land development agreement. The page bearing no 60-78 Party - H-2 Annexure A-2 (A.Y.2007-08) pertains to a development agreement entered into by M/s. New India City Developers Private Limited with the land owners for the development, promotion of real estate project on 35. 2062 acres land @ 10,00,000/- per acre, as per plan approved and sanctioned by concerned authorities. M/s. New India City Developers Pvt Ltd, being a group company, hence papers have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Mordhwaj Singh 2,21,80,000/- Mr Ram Narayan 2,27,96,000/- Mr.Vikramjeet Singh 2,21,83,000/- MrBhim Singh : 2,08,55,000/- The page bearing no 43-44, Annexure A-5, Party H-22 pertains to List of Directors and Shareholders of M/s. Today Homes and Infrastructure Private Limited which is a part of its secretarial record. The page bearing no 50-58, 105-108, Annexure A-5, Party H-22 pertains to a Memorandum of Understanding between the assessee company, THIPL M/s. Ultra Home Construction Pvt. Ltd. to form a consortium to participate in the tender for group housing scheme Noida for the allotment of plot by Noida Authority. The Assessee ccmpany was having the 10% share in the said consortium project and the lead member A3$ M/s Today Homes Infrastructure Pvt Ltd. The assessee company has not made an/ payment or received any payment against this MOA as the role responsibility of the assessee company was to supervise the said project. The page bearing no 113, 116-118 Annexure A-5, Party H-22 pertains to provisional bala ..... X X X X Extracts X X X X X X X X Extracts X X X X
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