TMI Blog2021 (7) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... cases has to be made only on the basis of incriminating material found during the search and completed assessments cannot be interfered with arbitrarily. In such circumstances, the finding of the ld. CIT(A) cannot be interfered with. - Decided against revenue. - ITA No. 7773/Del/2017 - - - Dated:- 16-7-2021 - Prashant Maharishi, Member (A) And K. Narasimha Chary, Member (J) For the Appellant : Satpal Gulati, CIT/DR ORDER K. Narasimha Chary, Member (J) Aggrieved by the order dated 17/10/2017 passed by the learned Commissioner of Income Tax (Appeals)-279, New Delhi ( Ld. CIT(A) ) in the case of Alchemist Capital Ltd. ( the assessee ) for the assessment year 2009-10, the Revenue filed this appeal. 2. Brief facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost of fund received as preferential share @ 7.87% per annum on redemption; that the assessee has deliberately under-recovered the income from its associate companies to the extent of 5.61% as against the cost accrued to the assessee company at 7.87%, thereby the under-recovered interest @5.61% on the average advance recoverable from the associate companies at ₹ 1,56,54,10,699/- which comes to ₹ 8,78,19,540/-. The Assessing Officer added such amount to the income of the assessee. Assessing Officer also made addition of ₹ 6,95,82,594/- and ₹ 40,64,627/- on account of loss on shares/derivatives and also u/s. 14A of the Act read with Rule 8D. 3. Assessee preferred appeal before the CIT(A) and argued that no incrimina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case took place on 20.06.2014, by which date the time period to issue notice u/s. 143(2) for assessment year 2009-10 stood expired. There is also no dispute that no incriminating material was found during the search and seizure operation to base any addition qua this assessment year. 7. In CIT vs. Kabul Chawla (supra), Hon'ble Delhi High Court held that the assessment cannot be made arbitrarily without any relevance or nexus with the seized material and the assessment in such cases has to be made only on the basis of incriminating material found during the search and completed assessments cannot be interfered with arbitrarily. In such circumstances, the finding of the ld. CIT(A) cannot be interfered with. 8. In the result, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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