TMI Blog2022 (11) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... ome from business income to income from other sources and this has not been done by reference to any seized incriminating material. Accordingly there is no infirmity in the order of the Ld. CIT(A). Hence, we uphold the same. Before parting we may refer to the pleading of the Ld. counsel for the assessee that in the case of the assessee the MAT provisions were applicable and in that view of the matter the tax effect is below the limit of CBDT circular for filing appeal before the Tribunal - Appeals of the Revenue stand dismissed. - I.T.As. No.8494 & 8495/DEL/2019 - - - Dated:- 31-10-2022 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER And SHRI NARENDER KUMAR CHOUDHRY , JUDICIAL MEMBER Appellant by : Shri M. P. Rastogi Adv Shri Rajeev Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 143(3) of the Income tax Act, 1961. 4. The order of the CIT(A) is erroneous and not tenable in law and on facts. 3. For the sake of reference, we are referring to the orders of Revenue's Authorities for Assessment Year 2003-04. 4. Pursuant to search and seizure operation in M/s. Flex Group of companies, assessment under Section 153C r.w. Section 143(3) was initiated against the assessee. The assessee is engaged in the business of investment in shares and securities, sale/purchase of shares and securities and other related financial activities. The Assessing Officer noted upon perusal of the profit and loss account of the assessee company that assessee has received Rs. 70,55,640 on account of commission from M/s. Akshay Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to have been received. 2) During the year, the assessee has debited negligible/nominal amounts on account of administration and other expenses (Rs. 67,081/- only), the highest expenditure being on account of audit and legal expenses. Salary and wages expenditure too, is a paltry sum @ Rs. 3,750/- p.m. 3) There is no expenditure by the assessee during the year, which could be directly or indirectly attributed to generation of income from commission and consultancy charges. 4) The express nature of business or profession declared by the assessee in Form No. 3CD is investment in shares securities, sale/purchase of share securities. 5) No evidence has been furnished by the assessee so as to prove that the receipts in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this regard, the assessee referred to the judgment of Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla, 380 ITR 573 (Delhi). Considering the above, the Ld. CIT(A) accepted the submission that addition has not been made by reference to any incriminating material found during search. He held as under: 4.2. It was also noticed that the special leave petition before the Hon'ble Apex Court against the above judgment of Delhi High Court had also been rejected. (S.L.P.(C) No.-34554 of 2015 [2016] 380 ITR (st) 64-Ed). In the instant case, it was found that the additions made by the AO are not on the basis of material seized during the course of search. As held by Hon'ble Delhi High Court in the above 2 judgments that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad 'business income to income from other sources'. Hence, the Ld. counsel for the assessee pleaded that the assessment so framed is not sustainable in law. 8. Upon careful consideration, we note that in this case the Assessing Officer pursuant to search and seizure has only changed the head of income from business income to income from other sources. In doing so, he has not referred to any incriminating material found during the search. In this view of the matter, the Ld. CIT(A) is correct that addition is not sustainable on the touchstone of the decision referred hereinabove. The Revenue in its grounds of appeal also mentioned that the decision of Hon'ble Delhi High Court in the case of Kabul Chawla (supra) has not been acce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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