TMI Blog2021 (11) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... emporaneous supportive evidence. We conclude in all these facts that both the lower authorities have erred in law and on facts in making the impugned identical addition of suppressed turnover in lead AY.2010-11 and varying sums in all remaining assessment years. The same stands deleted in all appeals. Disallowance u/s 40A(3) - HELD THAT:- We notice that the assessee appears to have made trip-wise payments only than those involving the transport invoices on whole-sum basis. This is also not the Revenue s case that all of these invoices are well beyond the specified limit of the cash payment in the relevant previous year. We therefore hold that the impugned addition based on mere search statement which goes against the record, is not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 396 to 402/Hyd/20 - - - Dated:- 24-9-2021 - Shri S.S.Godara, Judicial Member And Shri Laxmi Prasad Sahu, Accountant Member For the Assessee : Shri P.Murali Mohana Rao, AR For the Revenue : Shri D.Srinivas, DR ORDER PER S.S.GODARA, J.M. : These assessee s seven appeals for AYs.2010-11 to 2016- 17 arise against CIT(A)-11, Hyderabad s common order dt.31- 01-2020, passed in appeal Nos.306 to 309 and 311, 316, 320/2017-18/CIT(A)-11/Hyd/2019-20, involving proceedings u/s.143(3) r.w.s.153A for the AYs.2010-11 to 2015-16 and u/s.143(3) (for the AY.2016-17) of the Income Tax Act, 1961 [in short, the Act ]; respectively. Heard both the parties. Case files perused. 2. It transpires at the outset th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities have rightly framed Section 153A assessment proceedings followed by the impugned corresponding disallowances/additions or not? Our reply to the same is in assessee s favour and against the department. There can be hardly any dispute that various judicial precedents i.e., i. CIT Vs. Kabul Chawla, (2016) [380 ITR 573] (Delhi) ii. CIT Vs. Continental Warehousing Corporation (2015) [374 ITR 645] (Bom) iii. PCIT Vs. Saumya Constructions (P) Ltd. [387 ITR 529] iv. CIT Vs. IBC Knowledge Park Pvt. Ltd. [385 ITR 346] (Kar) and v. CIT Vs. Veerprabhu Marketing Ltd (2016) [73 taxmann.com 149] (Cal) hold in identical terms that such a search assessment in absence of any incriminating material found or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the regular course of business. We therefore hold that both the lower authorities have erred in law and on facts in framing the impugned assessment(s) in absence of any incriminating material found during the course of search. Learned lower authorities rather committed a fatal error rather in terming the foregoing power bill as incriminating material. 5. The outcome of all the foregoing issues on merits also is no different. This is for the reason that we have already indicated in the preceding paras that the department had not found any material at all; whatsoever, which could even remotely suggest that the assessee had concealed its alleged suppressed turnover in all these assessment years. This itself is the perfect instance wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d varying sums in all remaining assessment years. The same stands deleted in all appeals. 7. Next comes the second issue on merits regarding correctness of Section 40A(3) disallowance of ₹ 8,32,282/- in AY.2010-11 made by the learned lower authorities on the ground that the assessee had deliberately reduced the corresponding payment instances less than the prescribed limit; as the case may be as per its authorised person s statement (supra). 8. Learned departmental representative has placed reliance on the assessee s authorised person s search statement to this effect as well. We notice that the assessee appears to have made trip-wise payments only than those involving the transport invoices on whole-sum basis. This is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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