TMI Blog2021 (1) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... isement expenses - There is only reference to some post-search investigation and assessee was asked to furnish the details of advertisement expenses, which was furnished. However, the address and PAN of the parties were not provided and, therefore, these expenses were held to be bogus and disallowed by the ld. Assessing Officer. We do not find any reference to any material, which is incriminating in nature found during the course of search, which has been used by the ld. AO for making this disallowance. Disallowance under Section 14A - As noted that assessee has made an investment of ₹ 119 crores during the year and, therefore, he made the disallowance under that section. In that case, also we do not find any reference to any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee with respect to the validity of the notice under Section 153A of the Income Tax Act, 1961 (the Act) rather than remitting it back to the ld. CIT (Appeals). 4. Therefore, the question of law was framed by Hon ble High Court that whether ITAT was justified in remanding the assessment back to the CIT (Appeals) in respect of the aforesaid assessment years. 5. The Hon ble High Court set aside the order passed by the co-ordinate bench dated 2.04.2019 with a direction to the Tribunal to proceed to decide these appeals and the Cross Objections filed before it on its own. Thus, these appeals are restored to the co-ordinate bench and the rights and contentions of the parties are left open to be considered. Thus, the appeals decided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de it to the file of ld. CIT (Appeals). It directed ld CIT (Appeals) to decide the additional ground as per law. However, now the Hon ble High Court has directed the co-ordinate bench to decide this issue also. 10. The facts can be seen from the assessment order that a search and seizure operation under Section 132 of the Act was carried out on M/s. Jaipuria Group of cases on 27th March, 2012. Warrant of authorization under Section 132 of the Act was also issued in the name of the company. Therefore, notice under Section 153A of the Act for AY 2009-10 was issued on 8.04.2013. The return was filed on 11.07.2013 at ₹ 11,75,90,460/-. An addition of ₹ 11,27,042/- as well as disallowance under Section 14A of ₹ 7,08,92,279 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The first disallowance of ₹ 11,27,042/- was not based on any incriminating material found during the course of search. There is only reference to some post-search investigation and assessee was asked to furnish the details of advertisement expenses, which was furnished. However, the address and PAN of the parties were not provided and, therefore, these expenses were held to be bogus and disallowed by the ld. Assessing Officer. We do not find any reference to any material, which is incriminating in nature found during the course of search, which has been used by the ld. AO for making this disallowance. 15. Coming to the second disallowance under Section 14A, the Assessing Officer noted that assessee has made an investment of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s passed on 28th March 2014. The only dispute is also on account of unexplained advertisement expenditure and disallowance under Section 14A of the Act. The facts are pari materia similar to the facts in Assessment Year 2009-10. 21. The present assessment year is also a concluded assessment year i.e. not pending as on the date of search i.e. 27th of March 2012. The disallowance on advertisement expenditure of ₹ 22,68,806/- was made in a similar manner as it was made in Assessment Year 2009-10. There is no reference of any incriminating material found during the course of search. Similarly disallowance under Section 14A of the act of ₹ 9,65,39,770/- was also made which does not have any reference of incriminating material. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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