TMI Blog2023 (7) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A. Also in M/s U.K Paints (OVERSEAS) LTD. [ 2023 (5) TMI 373 - SC ORDER ] had observed that as found by the High Court in none of the cases any incriminating material was found during the search either from the Assessee or from third party. In that view of matter, as such, assessments u/s 153-C of the Act are rightly set aside by the High Court. Appeal of assessee allowed. - I.T. A. Nos. 161 to 163/Asr/2022 - - - Dated:- 12-5-2023 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : Sh. Joginder Singh, CA For the Respondent : Sh. S. R. Kaushik, CIT- DR ORDER PER BENCH: These three appeals have been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-5, Ludhiana even dated 21.07.2022 in respect of Assessment Years 2014-15, 2015-16 and 2019-20. 2. The assessee has raised the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. That on the facts and circumstances of the case, the order passed by the Ld. CIT(A)-5, Ludhiana is bad both in the eye of law and on facts. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A)-5 Ludhiana has confirmed the additions made by the Ld. AO in the Assessment Order passed in absence of seizure of any incriminating document belonging to the appellant. Neither any addition or disallowance was made on the basis of alleged seized documents nor any reference to seized material was made in connection with additions/ disallowances and also ignored the judgment of Hon'ble Delhi High Court in the case of Kabul Chawla (2016) 380-ITR-573 (Del). 3. That on the facts and in the circumstances of the case, the Ld. CIT(A)-5, Ludhiana has erred in confirming the addition of Rs. 2,50,000/- on merit as complete source of cash deposit have been explained. 4. The appellant craves leave to add, amend, alter or otherwise raise any other ground of appeal. 5. The appellant has filed following common and specific Additional Legal Ground in all the three captioned appeals, duly supported with an affidavit dated 25.04.2023 as under: 1. On the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year under the provisions of section 139 of the Income tax Act, 1961. 2. That on the basis of search and seizure action u/s 132 of the Income tax Act, 1961 which were conducted in the case of Mrs. Deepshikha Jamwal, being one of the partners of M/s Simula Group on 27.06.2019, certain books of account/ documents were seized and on the basis of satisfaction note it was recorded that the documents seized have a bearing on the determination of the total income and thus notices u/s 153C of the Income tax Act, 1961 were issued for different assessment years on 25.02.2021. 3. That the assessments have been completed for different assessment years, without appreciating the fact that no incriminating material/ documents were pertains to me and assessments have been completed u/s 153C of the I.T. Act, 1961 on routine matter, therefore, the assessment made are without any jurisdiction. 4. That specific additional ground of appeal is being raised to challenge the validity of assessment made u/s 153C of the Income tax Act, 1961 in absence of incriminating documents, in view of the recent judgment of the Hon'ble Supreme Court in the case of PCIT, Central-3 v/s Abhisar Buildwel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question involved in the present set of appeals and review petition is answered accordingly in terms of the above and the appeals and review petition preferred by the Revenue are hereby dismissed. No. Cost. 7. The additional ground raised in these three appeals are being requested to be admitted and adjudicated on merits in view of the discretion vested with the Tribunal under Rule 11 of the Income Tax Appellate Tribunal Rules, 1963, and also in view of the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Limited v/s CIT-229 ITR 383 and the decision of the Delhi High Court in the case of DCM Benetton India Ltd. v/s CIT-173 Taxman-283. Since, in the present appeals, the additional ground raised by the appellant involve, purely a legal issue, in relation to the facts on record, and hence, it is accordingly, admitted to be adjudicated first. 8. At the outset, the counsel for the assessee submitted that on the basis of search and seizure action 132 of the Income Tax Act, 1961 was conducted in the case of Simula Group of cases on 27.06.2019, the case was centralized and the jurisdiction of the case was transferred to the Central Circle, Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n submission and case law cited before us. Admittedly, there was no incriminating document/ material found and seized against the appellant assesse, as it is further evident from the assessment order itself where addition has been made without referring to any incriminating documents. The Ld. AR contended that during the course of the assessment proceedings as well as appellate proceedings, that no notice u/s 153C can be issued in absence of any incriminating material. In our view, the issue of notice u/s 153C of the Income Tax Act, for the year under consideration is absolutely unjustified in the absence of incriminating document/ material. 12. The Ld. CIT(A) failed to appreciate the facts on record that there was no incriminating document seized and that the assessment was completed vide order dated 15.03.2022 passed u/s 143(3)/153C of the Income Tax Act, 1961, whereby assessing total income at Rs. 13,09,870/- after making addition of Rs. 7,40,000/- u/s 69A of the Income Tax Act, 1961 in a routine manner in respect of unabated assessment without referring to incriminating documents is illegal and unjustified. In our view, the impugned order of the CIT(A) are perverse to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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