TMI Blog2021 (1) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... but the addition is made only for the reason that the ld. CIT (Appeals) has sustained the above addition in assessee s appeal against order under Section 143(3) - In view of this we direct the Assessing Officer to delete the addition. Addition on violation of the provisions of Section 40A(3) - assessee has found to have paid to various farmers and agriculturists for purchase of land in cash - HELD THAT:- On perusal of the assessment order as well as the order of the ld. CIT (Appeals) we do not find that there is any reference to incriminating material found during the course of search. These are already part of the accounted entries in the books of accounts of the assessee. Therefore, in the absence of any incriminating material, resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee) was not permissible in the present assessment. 2. That without prejudice on the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of ₹ 1,68.63,358/- made on account of alleged unaccounted payment of interest on PDCs in cash outside books of accounts. 3. That on the facts and circumstances of the case and in law the CIT(A) erred in upholding the disallowance of ₹ 1.20,312/- u/s 40A(3) of Income Tax Act. 4. That the orders passed by the Assessing Officer and Commissioner of Income Tax (Appeals)-XXX, New Delhi are bad in law and void ab initio. 5. The appellant craves permission to add, amend, alter or vary all or any grounds of appeal on or before the date of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier assessment order [ in proceedings u/s 143 (3)] should not be made again. The submission of the assessee is that addition made on account of interest paid on PDC has been deleted by the ld. CIT (Appeals) to the extent of ₹ 2,33,58,383/- out of the total addition of ₹ 4,02,21,741/- and the matter is pending before the co-ordinate bench. The learned Assessing Officer, therefore, made once again the addition under Section 153A of the Act to the extent of ₹ 1,68,63,358/-. This addition has already been made in the original assessment proceedings u/s 413 (3) and subject to appeal before CIT (A) and Now pending before ITAT, same could not have been repeated once again in assessment proceedings under Section 153A of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party is also not debited to the profit and loss account. However, the ld. AO held that this amount is in violation of Section 40A(3) of the Act and, therefore, disallowed 20% thereof amounting to ₹ 1,20,312/-. The first contention of the assessee is that the above addition is not made on account of any incriminating material found during the course of search and, therefore, in view of the decision of the Hon ble Delhi High Court in the case of CIT Vs. Kabul Chawla the addition cannot be made. On perusal of the assessment order as well as the order of the ld. CIT (Appeals) we do not find that there is any reference to incriminating material found during the course of search. These are already part of the accounted entries in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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