TMI Blog2019 (7) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... tion laid down in the case of CIT vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] and MEETA GUTGUTIA PROP. M/S. FERNS N PETALS [ 2017 (5) TMI 1224 - DELHI HIGH COURT] no addition can be made in case of unabated assessment if no incriminating material has been found during the course of the search qua that assessment year. Here in this case AO has simply made the addition on the basis of already material available on record during the course of the original assessment proceedings, therefore, the addition made is beyond the scope of section 153A and same is directed to be deleted. Disallowance u/s 14A - HELD THAT:- Fresh proceedings u/s 153(A) was initiated in wake of search and seizure action carried out on 3.3.2011. Thus, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2006-07; and order dated 23.3.2015, passed by CIT(Appeals) for the assessment year 2005-06 for the quantum of assessment passed u/s 153A/143(3). 2. We will first take up the appeal for the assessment year 2006-07, wherein the assessee has challenged the determination of income of ₹ 19,74,515/- as against ₹ 12,43,220/-. 3. The facts in brief are that the assessee has filed its return of income for the assessment year 2006-07 at an income of ₹ 12,43,220/- on 30.03.2007. Thereafter, proceedings u/s 153C was initiated in the case of the assessee in view of search and seizure action taken in the case of Surya Vinayak group of industries carried on 3.3.2011. In the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15/-. 5. Before the Ld. CIT (A) assessee has submitted that the addition of ₹ 5 lacs is beyond the scope of section 153A as no incriminating material whatsoever was found during the course of the search and the earlier assessment order had attained finality and was unabated assessment at the time of search. Therefore, addition of ₹ 5 lacs could not have been made. However, Ld. CIT (A) has confirmed that the said addition on the same reasoning given by the AO. 6. Before us, Ld. Counsel submitted that from a bare perusal of the assessment order it can be seen that there is no reference to any seized material found during the course of search and in fact sum of ₹ 5 lacs was appearing in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to be deleted. 9. In the result appeal of the assessee is allowed. 10. Similarly, in the appeal for the assessment year 2005-06, the only issue raised to disallowance u/s 14A of ₹ 41,631/-. Here in this case also, the return of income for the assessment year 2005-06 was filed on 29.10.2005 at an income of ₹ 17,19,760/- and thereafter assessment order was passed vide order dated 24.12.2009 passed u/s 153C/143 (3) at an income of ₹ 18,03,030/-. Later on, fresh proceedings u/s 153(A) was initiated in wake of search and seizure action carried out on 3.3.2011. Thus, on the date of search, assessment proceedings for the assessment year 2005-06 was not pending and in view of 2nd proviso to sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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