TMI Blog2022 (12) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - - - Dated:- 23-12-2022 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER And SHRI ANUBHAV SHARMA , JUDICIAL MEMBER ASSESSEE BY : Dr. Rakesh Gupta , Advocate Shri Somil Agarwal , Advocate REVENUE BY : Shri P. Praveen Sidharth , CIT DR ORDER PER SHAMIM YAHYA , ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the ld. CIT (Appeals)-3, Gurgaon dated 28.03.2019 for the AY 2012 - 13. 2. The grounds of appeal taken by the assessee read as under :- i) Whether on the facts and circumstances of the case the CIT(A) was right in holding that there was a difference in scope of proceedings under section 153A of the Income Tax Act, 1961 for an abated assessment and for a completed assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closed income in the scraped Chapter XIV B for block period in a single assessment. vi) Whether on the facts and circumstances of the case the CIT(A) was right in following Delhi High Court decision in the case of CIT v. Kabul Chawla, 61 taxman.com 412 when the Hon'ble HC itself admits in para 37 (iv) the Although Section 153A does not say that additions should strictly be made on the basis of evidence found in course of search .... there by interpreting the statute in the manner which were never worded or intended by the legislature. vii) Whether on the facts and circumstances on the case the CIT(A)is right in not following the judgments on the issue of additions in search case u/s 153A of the Income Tax Act, 1961 rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le consideration of tainted shares amounting to Rs. 1,46,76,109/- is therefore, added to the income of the assessee as unexplained cash introduced in the garb of Capital Gain. 4. Upon assessee s appeal, ld. CIT (A) held that it is not a case of abated assessment. That no assessment was pending. Hence, he held that addition made de hors any incriminating material found during search is not sustainable. The ld. CIT (A) order in this regard can be referred as under:- I have gone through the assessment order and the submissions filed by the appellant and following observations are made. 1. The appellant filed return u/s 139 for the year on 25.09.2012 and no notice u/s 143 (2) was issued to the appellant for the year under cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial pronouncements, assessment made u/s 153A made by the AO is bad in law, therefore no addition can be made to the income of the appellant and the same may please be deleted and the order u/s 153A may please be annulled. 7. Further, the case is also covered by the recent decision of Hon'ble ITAT, Chandigarh Bench in the case of DCIT vs SCM Fintrade Pvt Ltd in ITA No. 981 and 982/Chd/ 2017 dated 05.01.2018 decided on identical set of facts wherein addition made in assessment framed pursuant to search u/s 153A was deleted by the CIT(A) for the reason that there was no incriminating material found during the search and the assessments had not abated, which order was upheld by ITAT. The findings of the Hon'ble ITAT in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Smt Dayawanti (supra) incriminating material was found during search action, however, in the case of Principal CIT vs Meeta Gutgutia Prop. M/s Ferns N' Petals no incriminating material was found during search action and hence addition made was not justified. In view of the above, we do not find any infirmity in the order of the Ld. CIT(A) while deleting the impugned additions in both the appeals filed by the Revenue. 7. The facts of the above referred case(s) are similar to the present case. As mentioned earlier, the addition made in the cases under consideration are not emanating out of any incriminating material found during the search proceedings nor any proceedings were pending or abated on the date of search, in this c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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