TMI Blog2018 (2) TMI 1779X X X X Extracts X X X X X X X X Extracts X X X X ..... during the course of search, whereas the addition made in the present case is without having any incriminating material/seized document is not sustainable. - Decided in favour of assessee. - ITA No. 460/Del. /2016 - - - Dated:- 26-2-2018 - Shri Bhavnesh Saini, Judicial Member And Shri L.P. Sahu, Accountant Member Revenue by Ms. Rachna Singh, CIT/DR Assessee by Sh. Raj Kumar, CA ORDER Per L.P. Sahu, A.M.: This is an appeal filed by the Revenue against the order of ld. CIT(A)- XXIX, New Delhi dated 26.11.2016 for the assessment year 2010-11 on the following grounds : 1. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 75,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory notices were issued to the assessee from time to time. In the assessment proceedings, the Assessing Officer observed that the assessee had received an amount of ₹ 75.00 lacs towards share application money from M/s. Rufell Mercantile Pvt. Ltd. and ₹ 1.30 crores from M/s. Purshottam Vinimay Pvt. Ltd. In support this, the assessee produced their confirmations, bank statement, copies of balance sheets alongwith relevant schedules showing investments. The Assessing Officer issued show cause notice dated 20.03.2015. In response, the assessee submitted the detailed reply. Notices u/s. 133(6) were also issued to both the companies who replied the notices. The Assessing Officer was not satisfied with the reply of assessee and enhanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conducted on 23.08.2012, but the case relates to the assessment year 2010-11. We observe from the assessment order that the assessing officer has not referred any incriminating material found in the search. During the course of appellate proceedings before the ld. CIT(A), the ld. CIT(A) specifically asked the Assessing Officer for clarifying the status of assessment on the date of search for the impugned assessment year. The Assessing Officer vide his reply dated 16.10.2015 mentioned after perusal of record, it is observed that as on the date of search, assessment in this case was not pending, hence, it was unabated . The case law relied by the assessee, as noted above is fully applicable. The ld. CIT(A) has made a reasoned order. The find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore these additions are outside the scope of assessment under section 153A of the Act, since the proceedings for the AY 2010-11 stands completed and unabated at the date of search. 10.2 Search was conducted in this case on 23.08.2012. Original return was submitted by the appellant on 15.10.2010, declaring nil income. This was processed under section 143(1) of the Act. 10.3 Looking to the argument put forth by the appellant that assessment proceedings were complete and unabated the AO was specifically asked to clarify the status of assessment on the date of search. Vide his reply dated 16.10.2015 it has been mentioned by the AO i.e. ACIT, Central Circle-27 that:- Y ' . After perusal of records, 'it is observed that as on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunities were provided to the assessee to explain the transactions. On examination of the bank statement submitted by the assessee, it was observed that funds were transferred M/s Landcraft Developers P. Ltd. after the receipts of funds from another entity within a few days of deposit During the course of assessment proceedings, it was observed by the AO that M/s Raffle Mercantile P. Ltd. was registered in Kolkata and it was observed by the AO that M/s Reffle Mercantile P, Ltd. used to arrange bogus entries for the different companies. Notices under section 133(6) were issued in M/s Raffle Mercantile P.' Ltd. for the AY 2011-12. However, the reply was not found satisfactory. Since the company involved is same, it was held by the AO th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant. 10.10 From the above discussions it is clear that there is no material or evidence found or seized during the course of search proceedings of the appellant nor any evidence found for generation of unaccounted income nor any undisclosed/unaccounted asset, cash, jewellery and investment etc. has been discovered. 10.11 Therefore, looking to the facts of this case where the assessment proceedings were already completed and unabated and. no such incriminating material or evidence found/seized during search to conclude the generation of' undisclosed income of the appellant, the decision ,of Hon'ble Delhi High Court relied upon by the appellant in the case of Kabul Chawla vs. CIT dated 28.08.2015 is applicable in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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