TMI Blog2017 (5) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 is not sustainable in the eyes of law. See CIT vs. Kabul Chawla (2015 (9) TMI 80 - DELHI HIGH COURT ) - Decided in favour of assessee. - I.T.A. No.4838/DEL/2014, C.O. No. 157/DEL/2015 - - - Dated:- 19-5-2017 - Shri H.S. Sidhu, Judicial Member And Shri Prashant Maharishi, Accountant Member Revenue by : Sh. S.S. Rana, CIT(DR) Assessee by : Sh . Amit Goyal, CA ORDER Per H. S. Sidhu : JM The Revenue has filed the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer is not in accordance with the provisions of law and accordingly the assessment order passed is liable to be quashed. 3. On the facts and circumstances of the case and in law, the addition of ₹ 1,46,38,000/- made by AO by applying provisions of section 2(22)(e) of Income Tax Act, 1961 is totally erroneous. On the facts and circumstances of the case and in law, the assessing officer has misapplied the provisions of section 2(22)(e) of Income Tax Act, 1961. 4. On the facts and circumstances of the case and in law, the addition of ₹ 1,46,38,000/- made by AO by the assessing officer is beyond the scope of provision of section 153A of Income Tax Act, 1961. 5. On the facts and circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. Against the aforesaid assessment order dated 26.3.2013, assessee preferred an appeal before the Ld. CIT(A), who vide impugned order dated 18.6.2014 has allowed the appeal of the asseseee for statistical purposes. 6. Aggrieved with the order of the Ld.CIT(A), Revenue is in appeal and assessee is in Cross Objection before the Tribunal. 7. At the threshold, Ld. Counsel of the assessee has stated that the Cross Objection filed by the assessee has involved the legal issue and therefore, the same may be first decided. Hence, we first deal with the Assessee s Cross Objection and adjudicate upon the legal issue. 8. At the threshold, Ld. Counsel of the assessee stated that the issues in dispute relating to upholding the validity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scope of section 153A of the Income Tax Act, 1961, because no incriminating material or evidence had been found during the course of search so as to doubt the transactions. It was noticed that as on the date of search i.e. 09.9.2010, no assessment proceedings were pending for the year under consideration and the AO was not justified in disturbing the concluded assessment without there being any incriminating material being found in search. In fact, in the entire assessment order, the AO has not referred 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an ITA Nos. 707, 709 and 713 of 2014 of assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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