TMI Blog2021 (7) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... material. Even in the present appeal, the revenue is unable to explain or give us any indication about the same. The findings of facts returned by CIT(A) and ITAT are not be interfered with lightly. The view taken by the tax authorities based on the decision of CIT Vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] cannot be held to be perverse. The questions of law proposed by the Revenue are squarely covered by the aforesaid judgment. - Decided in favour of assessee. - ITA 44/2021 & CM No.6158/2021 - - - Dated:- 20-7-2021 - HON'BLE MR. JUSTICE MANMOHAN AND HON'BLE MR. JUSTICE NAVIN CHAWLA Appellant Through : Mr. Ajit Sharma, Sr.SC with Mr. Anant Ram Mishra, Adv. Respondent Through : Mr. Ved Jain and Ms. Rich ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company. On the basis of the Auditor Report and the response of the assessee, the AO concluded that in the case of member (broker) group companies of the assessee, the Client Code Modification is by and large not for genuine reasons and is rather for extraneous considerations. The net effect of profit and loss shifting in the code of assessee-company has been suppressed in its books of accounts. Accordingly an amount of ₹ 22,16,30,832/- was added to the income on account of Client Code Modification. Further, a sum of ₹ 60,000/- was also disallowed under section 40A(3) of the Act and added to the income of the assessee for expenditure incurred in cash by the assessee beyond the limit prescribed under the Income Tax Act. The tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have perused the record. Both the CIT(A) as well as the ITAT have held in the instant case that the addition is not based on any incriminating material found during the course of search and the assessment was not pending on the date of search. The observations of the assessing officer relied upon by Mr. Sharma do not give us any insight or clue about the incriminating material which is claimed to be in existence. In the proceedings before the CIT(A) as well as the ITAT, the Revenue has not made any attempt so as to disclose the incriminating material. Even in the present appeal, the revenue is unable to explain or give us any indication about the same. 7. The findings of facts returned by CIT(A) and ITAT are not be interfered with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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