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TMI Blog2017 (4) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... oney from non-descript companies. 2. The Commissioner of Income tax (Appeal) erred in law and on facts in deleting an addition of Rs. 41,500/- made by the AO w.r.t. commission paid @ 5% for procurement of accommodation entries through share application money from non-descript companies. 3. The Commissioner of Income tax (Appeal) erred in admitting additional evidence under Rule 46A. 4. (a)The order of the CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all the grounds of appeal before or during the course of the hearing of the appeal." (B). The assessee filed original return of income on 21.03.2007 declaring NIL income. Later, search u/s 132 of the I.T.Act, 1961 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). At the time of hearing before us, Ld. Counsel for the assessee contended that the matter is covered in favour of the assessee by order of Jurisdictional Delhi High Court in the case of CIT vs Kabul Chawla 380 ITR 573 (Delhi) and sought to support the order of the Ld.CIT(A) vide application under Rule 27 of the Income Tax Appellate Tribunal Rules, 1963, the relevant portion which is reproduced below:- "The appellant seeks your kind permission to move application under Rule 27 of the Appellate Tribunal Rules 1963 to support the order under appeal. The Ld CIT (A) has allowed the relief to the respondent assessee on merits deleting the additions of Rs. 83,41,500/- after considering the facts of the case. The Ld CIT (A), however, has not al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Delhi High Court." (B.1.1). Ld. counsel for the assessee also supported the order of Ld.CIT(A) on merits. Ld.CIT (Departmental Representative), (in short "CIT DR") who appeared on behalf of the Revenue supported the order of the AO. He also relied on the precedents in the cases of E.N.Gopakumar vs CIT [2016] 75 taxmann.com 215 (Kerala); CIT vs Raj Kumar Arora [2014] 52 taxmann.com 172 (Allahabad)/ [2014] 367 ITR 517 (Allahabad); CIT vs Kesarwani Zarda Bhandar Sahson Alld. [ITA No.270 of 2014] [Allahabad]; Cit vs St.Francis Clay Décor Tiles [385 ITR 624]; and Smt. Dayawanti vs CIT [75 taxmann.com 308]. The Ld. counsel for the assessee replied with the submission that the order of Jurisdictional High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kabul Chawla 380 ITR 573 (Delhi) provides better guidance than the case of Dayawanti vs CIT (supra). In the case of CIT vs Kabul Chawla (supra) the Hon'ble jurisdictional High Court held as under:- "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 ITA Nos. 707, 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 reasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with 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." (C.1). In the instant case, the additions have been made by the AO despit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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