TMI Blog2019 (3) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... al assessments. Since the impugned assessment year is a completed assessment, therefore, the same, in our opinion, cannot be disturbed without any incriminating material found during the course of search. - decided against revenue - ITA Nos.832, 863 And 864/Del/2015 - - - Dated:- 20-11-2018 - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The Assessee : Shri Akshat jain And Shri Rajat Jain, CAs For The Revenue : Shri B.P. Singh, Sr. DR ORDER PER R.K. PANDA, AM: The above three appeals by the Revenue are directed against the separate orders dated 14.11.2014 of the CIT(A)-31, Delhi relating to Assessment Years 2008-09, 2009-10 2010-11, respectively. Since identical grounds have been raised by the Revenue in all these appeals, therefore, these were heard together and are being disposed of by this common order. 2. First, we will take up ITA No.832/Del/2015 as the lead case. The facts of the case, in brief, are that a search and seizure operation u/s 132 of the IT Act was carried out on M/s Jaipuria group of cases on 27th March, 2012. The case of the assessee was also covered in the said search. In response to noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. The said section is applicable in cases where any expenditure is found to have been incurred and appellant is not able to explain the source of funds used in such expenditure. In the present case it is nobody s case that the appellant did not have sufficient source to explain the advertisement expenditure. The fact that the advertisement expenditure has been duly entered in the books of accounts and payments have been made from the appellant s bank accounts maintained in the regular course of business and also that the expenditure finds its due place in the P L A/c shows that this is not the case which could be covered u/s 69C of the Act. To this extent the AO s action cannot be sustained. 4.2 It is noted that the AO has approached the issue of genuineness of expenditure in a completely incorrect way. At para 4 of the assessment order, he notes that in the details submitted by the assessee no address or PAN were available in some of the cases and that a show-cause notice was issued on 29.06.2012 to the assessee to explain as to why in the absence of any evidence to prove the identity of the parties, advertisement expenses booked from such parties may not be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is reproduced below for ready reference:- During the assessment proceedings, once again the assessee was asked to furnish the details of the advertisement expenses made party wise alongwith their names, addresses PAN, details nature of the advertisement expenses, and whether TDS has been made on such expenses as per the questionnaire dated 23.10.2013. The assessee was also requested to prove the identity, genuineness and creditworthiness of parties along with their reconciliation in the books of accounts. In spite of hearing on various dates, the assessee could not furnish the said details. The assessee was requested to furnish the said details vide summon u/s 131 dated 10.02.2014. The statement of the assessee was recorded on 05.03.2014, but the assessee requested for further time to furnish the same shortly. 4.2.17. I am of the view that the very approach of asking the appellant to prove the identity, genuineness and creditworthiness of the parties to whom advertisement expenses have been paid is incorrect in the given circumstances. The AO has not at all examined the documents which are available with the assessee about the expenses incurred by him. Instead, as if i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2.20 In the present case, the AO has made addition solely on the basis of non- compliance to notices u/s 133(6) by the third parties. This action of the AO cannot be sustained. 4.2.21. There is merit in the arguments of the AR and also his reliance on the case laws cited by him as detailed at para 4.2.8. Therefore, the addition of ₹ 2,03,82,486/- made u/s 69C of the Act is hereby deleted. 4. Aggrieved with such order of the CIT(A), the Revenue is in appeal before the Tribunal by raising the following grounds:- 1. The order of Ld. CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of ₹ 2,03,82,486/- made by the Assessing Officer on account of unexplained advertisement expenses. 3. The appellant craves leave to add, amend any/all grounds of appeal before or during the course of hearing of the appeal. 5. The ld. counsel for the assessee, at the time of hearing, filed the following legal ground under Rule 27 of the IT(AT) Rules, 1963:- 1. That on the facts and circumstances of case, additions made under section 153A of the Income tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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