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TMI Blog2018 (4) TMI 1822X X X X Extracts X X X X X X X X Extracts X X X X ..... sment years 2009 - 10, 2010 - 11, 2011 - 12 and 2012 - 13 respectively whereas ITA numbers 4455 and 4456 are the Department's appeals for assessment years 2009 - 10 and 2010 - 11 respectively. All these appeals emanate from assessment proceedings subsequent to a search and seizure action u/s 132 (1) of the Income Tax Act, 1961 on 10.01.2012 at the residential premises of the Minda Group. All these appeals were heard together and are being disposed of by this consolidated order for the sake of convenience. 1.1 The four assessment years under appeal are now being taken up one by one. 2. Assessment Year 2009-10: ITA No. 4297/DEL/15 is assessee's appeal relating to assessment year 2009 - 10. Ground numbers 1 to 5 in this appeal are agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar addition had been adjudicated earlier in favour of the assessee by the ITAT in assessee's own case. It was submitted that the issue in dispute is fully covered in favour of the assessee by virtue of the earlier order of the ITAT. 3. In response, the Ld. CIT DR placed extensive reliance on the concurrent findings of both the lower authorities and submitted that the additions/disallowances deserve to be upheld. 4. With reference to the Department's appeal bearing ITA No. 4455/DEL/15, the Ld. authorised representative submitted that the issue being challenged by the Department pertains to the deletion of disallowance under section 14A of the Act read with Rule 8D of the Income Tax Rules, 1962. It was submitted that this issue is also co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the earlier orders of the Tribunal in the assessee's own case as aforementioned we allow these grounds raised by the assessee. 6.1 As far as the issue of disallowance of professional charges paid for feasibility study is concerned, it is seen that no new fact or incriminating material was unearthed during the course of search with respect to this issue and no new material fact has been brought on record even during the course of proceedings before us. We find that this issue has been earlier settled in favour of the assessee in assessee's appeal for assessment year 2009 - 10 in the original assessment proceedings wherein it had been held that the expenditure on feasibility study pertained to expansion of business by way of acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erfere with the findings of the Ld. CIT (Appeals) in this regard and we deem it fit dismiss the grounds raised by the Department. 8. In the result the appeal of the assessee bearing ITA No. 4297/DEL/2015 has allowed whereas the Department's appeal bearing ITA No. 4455/DEN/2015 is dismissed. 9. Assessment Year 2010-11: In this year the assessee's appeal bearing ITA No. 4298/Del/2015 raises the sole issue of confirmation of ad hoc disallowance to the extent of 5% of the total foreign travelling expenses by the Ld. CIT (Appeals). Ground No. 1 of the Department's appeal in ITA No. 4456/Del/2015 is the cross ground of appeal by the Department on this issue. The facts pertaining to this issue are that the assessing officer had disallowed 10% ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der passed under section 153A of the Act. The Ld. authorised representative submitted that during the course of search, certain documents pertaining to scrap sale were seized. These documents indicated that the assessee was billing the scrap at rates lower than the rates at which the scrap was actually being sold. The AO made addition by extrapolating these transactions for the remaining period of the year. On the assessee approaching the Ld. first appellate authority, the Ld. CIT (Appeals) allowed the impugned relief by coming to the conclusion that extrapolation of the figures by Rs. 45,89,679/- was not warranted and further that the addition had been made on conjectures and surmises and, therefore, needed to be restricted to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile allowing the relief, the Ld. CIT (Appeals) has also accepted the assessee's reliance on the judgment of the Hon'ble Delhi High Court in the case of Kulwant Rai reported in 291 ITR 36 (DEL). Although the Ld. CIT DR has contested the deletion of addition by the Ld. CIT (Appeals), she could not point out any legal infirmity or factual infirmity on this adjudication by the Ld. CIT (Appeals). The Department also could not point out any judgment to the contrary and in favour of the Department in this regard. It is settled law that there is no scope for extrapolation in assessment framed under section 153A of the Act and the additions can be made only with reference to incriminating material found during the course of search. This view suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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