TMI Blog2020 (4) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue Department that the assessment proceedings were still alive as on the date of search operation, therefore the case cited by the Ld. CIT DR is distinguishable on facts. Even from the orders passed by the authorities below there is nothing to suggest as to what incriminating material has been found on dated 11.02.2016 during the search u/s 132(1) of the Act from the assessee possession or his premises, on the basis of which the additions have been made. As the issue involved in the instant case is squarely covered by the decisions of Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] and Pr. CIT vs., Meeta Gut Gutia [ 2017 (5) TMI 1224 - DELHI HIGH COURT] - Decided in favour of assessee. - ITA Nos.272 & 273/Asr/2019, ITA Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch operation at the residential premises of Sh. Prem Singh on dated 11.202.2016, his statement was recorded on oath in which he stated that some investment in purchase of land was made by him out of funds provided by M/s Guru Nanak Milk Products, Village-Mallanwala. On verifying the trail of funds, it was noticed that M/s Guru Nanak Milk Products had raised loans from M/s Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Ferozepur. It was further noticed that the assesse and his son Sh. Gurmeet Singh were partners in M/s Guru Nanak Milk Products with 50% share each and also substantive shareholders in M/s Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Fereozepur with shareholding of 22.38% and 30.55% respectively. Therefore, the firm in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance to section 153A of the Act. 6. On the contrary, the Ld. DR relied upon the various judgments and submitted that though the incriminating material was recovered during the search operation, however in law there is no necessity of any incriminating material for initiating the proceedings u/s 153 of the Act as held by various High Courts and the addition can be made without any incriminating material qua the years covered by Sec.153A. The Ld. DR finally argued that the conclusion drawn by Delhi High Court in the case of CIT vs. Kabul Chawala (supra) is contrary to the principles laid by the same High Court in the case of Anil Kumar Bhatia ( 24 taxmann.com 98) and Chetan Das Lachman Das ( 25 taxmann.com 227) and various decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition that the Department has to unearth some incriminating material to conclude some method against the assessee in events where the assessment is triggered by a notice under Section 153(1)(a) of the Act. 8. The question involved in the instant case relates to the issue , where no assessment proceedings for the year under consideration are pending, in that eventuality, in the absence of any incriminating material found during the course of search and seizure proceedings, whether addition can be made qua unabated assessment for the said year. 9. There are many judgments against the assessee s contention but we are quoting few on which the Revenue Department relied:- (i) E.N. Gopal Kumar vs. CIT (Central) reported 390 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment which favours the assessee should be followed, we do not have hesitation to follow the judgment of Hon ble Delhi High Court rendered in the case of CIT(Central-3) vs. Kabul Chawla (supra) wherein clearly held that if on the date of search, the assessment proceedings already stood completed and no incriminating material unearthed during the search, then no addition can be made to the income already assessed . The said dictum of the Hon ble High Court confirmed by the Hon ble Apex Court vide order dated 2nd July, 2018 in the case of Pr. Joint CIT vs. Meeta Gutgutia (supra) by dismissing the SLP filed against the judgment of Delhi High Court, wherein the same dictum has been laid down by the Hon'ble Court as laid down in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions of Delhi High Court in the case of CIT vs. Kabul Chawla (supra) and CIT vs. Meeta Gutgutia (supra) and by the co-ordinate bench at Amritsar {Jalandhar Camp} in the case of Smt. Sanjana Mittal Vs. DCIT {ITA no. 487/ASR/2018 decided on dated 11th March, 2019} wherein also the dictum laid down in Kabul Chawla case has been followed , hence respectfully following the same, we are inclined to delete the addition made by the AO and sustained by the Ld. CIT(A). Consequently, the appeal i.e. ITA no. 272/ASR/2019 is liable to be allowed. Ordered accordingly. 13. In the result of ITA no. 272/ASR/2019, all the appeals under consideration filed by the assessee stands allowed. Order pronounced in the open Court on 01/01/2020. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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