TMI Blog2019 (4) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... e dismissed at the threshold as the action of the AO itself suffers from lack of jurisdiction. - Decided in favour of assessee. - I.T(SS).A. Nos. 177 And 178/Ahd/2015 With Cross Objection Nos. 132 And 133/Ahd/2015 - - - Dated:- 11-2-2019 - Shri Pradip Kumar Kedia, Accountant Member And Shri Mahavir Prasad, Judicial Member For the Assessee : Shri S. N. Soparkar, Sr. Advocate with Shri Nishit Shah For the Revenue : Shri O. P. Sharma, Sr. D.R. ORDER PER PRADIP KUMAR KEDIA - AM: The captioned appeals have been filed by the Revenue concerning Assessment Years (AYs) 2008-09 2009-10 against the respective orders of the Commissioner of Income Tax(Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making certain additions and disallowances on re-appreciation of facts already disclosed/available with the department prior to search. It was further vehemently asserted that the adjustments made in the search assessments are possibly subject matter of regular assessment and do not resonate with the scheme of search assessment under s.153A of the Act de hors reference to any incriminating material in this regard. The Ld.AR further emphasized that both these assessments stood concluded on the date of search and were not pending for assessment and hence in the absence of incriminating material, no adjustment in the returned income is permissible under section 153A of the Act. The learned AR thereafter submitted that the law is well settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. We have carefully perused the rival submissions. The first and foremost controversy that arises for adjudication is on the scope and ambit of assessment proceedings under s.153A of the Act. The case propounded on behalf of the assessee that additions/disallowances made in Section 153A proceedings has no rational connection with incriminating material, if any, found as a result of search remains undisputed. It is also not dispute that assessment pertaining to the assessment years in question viz. AYs. 2008-09 2009-10 stood concluded either under s.143(1) or under s.143(3) of the Act and were not pending at the time of search. In the backdrop of these facts, we straightway notice that the scope of assessment under s.153A of the Act in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded either under s.143(1) or under s.143(3) and not pending at the time of search in the absence of any incriminating material unearthed as a result of search. 6.1. On a bare perusal of assessment years in appeals and the composite order of the CIT(A) discussing issues connected with various additions/disallowances, we find total absence of reference to any incriminating material which may have any bearing to impugned additions/disallowances. As a corollary, it is manifest that additions/disallowances have been made without reference to any specific incriminating material/document found as a result of search and seizure action under s.132 of the Act and is based on re-appreciation of facts unconnected to search. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.4. In view of long line of judicial precedents governing the field, we hold that additions/disallowances made without any nexus to incriminating material found, if any, as a result of search operations are not sustainable in the eyes of law in section 153A of the proceedings. Hence, the additions/disallowances made by the AO in all the captioned appeals require to be quashed. Thus, we find merit in the legal ground raised by the assessee. In this view of the matter, we do not intend to adjudicate various additions/disallowances on merits. 6. In the light of the judicial fiat, the position of law is explicitly clear. In the absence of any connection with the incriminating material, the additions/disallowances in res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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