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TMI Blog2021 (8) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case and in law, the Ld.CIT (A) was correct in holding that the scope of section 153A is limited to assessing only search related income, thereby denying Revenue, the opportunity of taxing other escaped income that comes to the notice of the Assessing Officer. 4. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) was correct in holding that information available with the Revenue department as well the information yielded during the post search proceedings and connected to the search and seizure proceedings regarding unsecured loans, in the form of statement recorded on oath is not incriminating material? 5. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was correct in allowing the appeal filed by the assesses and deleting the addition of Rs. 4,56,00,000/- being the addition made u/s 68 of the IT. Act 1961 though the creditworthiness of the parties from whom the share application money was received and genuineness of the said transaction were not proved. 6. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) was correct in allowing the appeal filed by the assessee and deleting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the Appellant: 12.0 During the course of appellate proceedings, the Appellant has filed the copies of the Panchanama dated 28.01.2015 and 26.03.2015 drawn in the name of the Appellant at the time of the search operation. A perusal of the Panchanamas clearly reveal that no incriminating material had been found during the course of search operation, in relation to the unsecured loans or the interest payments, which had been added back by the Assessing Officer in the assessment order passed u/s. 153A of the Act. The Panchanamas along with the attached Annexure makes it apparent that during the course of search operation, only certain cash, jewellery and one brokerage bill was found and seized by the Investigation Wing. 12.1 I have also gone through the assessment order passed by the Assessing Officer u/s. 143(3) r.w.s. 153A of the Act and taken not of the fact that there is not even a whisper about any incriminating document or material, which had been found during the course of search operation. The Assessing Officer, while making the addition on account of unsecured loans and interest had not referred to any incriminating / adverse material being found during the course of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finalized assessments/reassessments do not abate, the appeal revision or rectification pending against finalised assessment/reassessments would not abate. iii. Therefore, the argument of the revenue, that on initiation of proceedings under Section 153A, the assessments/reassessments finalised for the assessment years covered under Section 153A of the Income-tax Act stand abated cannot be accepted. Similarly on annulment of assessment made under Section 153A(1) what stands revived is the pending assessment/reassessment proceedings which stood abated as per section 153A(1)." 13.15 A similar view has been taken by the Hon'ble Bombay High Court (Nagpur Bench) in case of Murli Agro Products Ltd Vs. CIT 49 Taxman.com 172in ITA No 36 of 2009, wherein it has been held that on initiation of proceedings U/s. 153A, it is only the assessment proceedings that are pending on the date of conducting search U/s. 132 or making requisition U/s. 132A of the Act that stand abated and not the assessments already finalized. The relevant excerpts of the judgment are reproduced hereunder:- "9. What Section 153A contemplates is that, notwithstanding the regular provisions for assessment/ reasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, in the facts of the present case, initiation of proceedings under Section 153A would not affect the assessment finalized on 29-12-2000. 12. Once it is held that the assessment finalized on 29.12.2000 has attained finality, then the deduction allowed under section 80HHC of the Income-tax Act as well as the loss computed under the assessment dated 29-12-2000 would attain finality. In such a case, the A.O. while passing the independent assessment order under Section 153A read with Section 143(3) of the IT. Act could not have disturbed the assessment/reassessment order which has attained finality, unless the materials gathered in the course of the proceedings under Section 153A of the Income-tax Act establish that the reliefs granted under the finalized assessment/reassessment were contrary to the facts unearthed during the course of 153A proceedings. 13. In the present case, there is nothing on record to suggest that any material was unearthed during the search or during the 153A proceedings which would show that the relief under Section 80 HHC was erroneous. In such a case, the A.O. while passing the assessment order under Section 153A read with Section 143(3) could not have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer on account of unsecured loans u/s.68 of the Act. This issue is covered in favour of the Appellant by the decision of the Hon'ble ITAT, Mumbai in the case of M/s. Geetanjali Space Pvt.Ltd. reproduced above, which is on similar facts and circumstances. In view of the order of the Hon'ble ITAT in the case of M/s. Geetanjali Space Pvt.Ltd., the various documentary evidences placed on record and after taking into consideration the fact that there is no adverse observation about the Appellant in the statements of Shri Navneet singhania and Shri Praveen Agarwal, the addition made by the AO u/s 68 of the Act needs to be deleted on merits also. Accordingly, Ground of Appeal Nos. 5 to 13 of AY 2012-13 raised by the Appellant are allowed. 9. Against the above order revenue is in appeal before us. 10. We have heard both the parties and perused the records. Ld. Counsel of the assessee contended that issue on validity of jurisdiction is fully covered by Hon'ble Bombay High Court decision in Continental Warehouse Corporation Ltd. 374 ITR 645 and Murali Agro Products Ltd. 49 taxmann.com 172. 11. Per contra Ld. DR could not despite the proposition. 12. Upon careful cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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