TMI Blog2017 (4) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Kabul Chawla (2015 (9) TMI 80 - DELHI HIGH COURT) In the absence of any incriminating material unearthed during the course of search, the AO had no jurisdiction to initiate proceedings u/s 153A of the Act when no assessment proceedings were pending for this. Assessment Year on the date of search. Accordingly, we hold that the assessment order dated 29.12.2011 u/s 143(3) r.w.s. 153A of the I.T.Act and the additions made therein were without jurisdiction. - Decided in favour of assessee. - I.T.A .No.-52/Del/2014 - - - Dated:- 21-4-2017 - Sh. H.S.Sidhu And Sh.Anadee Nath Misshra, JJ. Assessee by Sh.S.S.Rana, CIT DR Revenue by Sh.Suresh K.Gupta, Adv. ORDER Anadee Nath Misshra, (A). The present appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be treated as filed in response to notice issued u/s 153A of the I.T.Act. Assessment order dated 29.12.2011 was passed u/s 143(3) r.w.s. 153A of I.T.Act wherein the following additions, totaling ₹ 83,41,500/-were made:- i). on a/c of share application money ₹ 83,00,000/- ii). on a/c of commission ₹ 41,500/- Totaling ₹ 83,41,500/- (B.1). The aforesaid addition of ₹ 83,00,000/- was made by the Assessing Officer on the ground that the assessee had taken accommodation entries towards share application money. Moreover, the aforesaid addition of ₹ 41,500/- was made by the AO on the account of estimated commission paid by the assessee @ 0.5% of the aforesaid ₹ 83,00,000/-. The assessee file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration of the Hon'ble Bench under Rule 27 of the appellate Tribunal Rules 1963 That on the facts and circumstances of the case, the Commissioner of Income Tax (Appeals) has erred both in law and on facts in confirming the proceedings initiated under Section I53A of I.T. Act, which Is bad in Jaw in the absence my incriminating material belonging to the assessee being found during the course of search . The respondent assessee seeks to support the order of the Ld CIT(A) under above Rule as this ground has been decided by the Ld CIT (A) against the into pages 6 to 10 of the order of Ld CIT (A) in Appeal for AY 2006-07 which is the order followed by the Ld CIT(A) in the assessment year under consideration. The appellant reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial or evidence (whether by way of statement or document or asset etc.) against the assessee unearthed as a result of search u/s 132 of I.T.Act relevant for any of the assessment years. The Ld.CIT DR did not dispute the fact that there was no incriminating material or evidence (whether by way of statement or document or asset etc.) against the assessee as a result of search u/s 132 of I.T.Act relevant for any of the assessment years. (C). We have heard both sides patiently. We have also perused all materials carefully. We have considered all the precedents brought to our attention. On perusal of paragraph 4.1 of the impugned appellate order dated 25.10.2013 of Ld.CIT(A), we find that no proceedings were pending for this assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he '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 assessment order in 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 Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that the matter is squarely covered in favour of the assessee by precedent of Hon ble Jurisdictional High Court in the case of Kabul Chawla (supra). Respectfully following the decision of the Hon ble Jurisdictional High Court in the case of Kabul Chawla (supra), we hold that in the absence of any incriminating material unearthed during the course of search, the AO had no jurisdiction to initiate proceedings u/s 153A of the Act when no assessment proceedings were pending for this. Assessment Year on the date of search. Accordingly, we hold that the assessment order dated 29.12.2011 u/s 143(3) r.w.s. 153A of the I.T.Act and the additions made therein were without jurisdiction. Hence, we annul the assessment order dated 29.12.2011 u/s 143( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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