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TMI Blog2024 (5) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... his common order for the sake of convenience and brevity. 2. The sum and substance of the grievance of the Revenue is that the ld. CIT(A) erred in deleting the addition made by the Assessing Officer on account of the same being devoid of any incriminating material found during the course of search, rendering the assessment order bad in law. 3. The challenge before us is that whether the impugned assessment orders are devoid of any incriminating material found at the time of search and therefore, the ratio laid down by the Hon'ble Jurisdictional High Court of Delhi in the case of Kabul Chawla 380 ITR 573 affirmed by the Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt Ltd 454 ITR 212 squarely apply making the impugned ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of any incriminating material. The incriminating material found in the course of search pertained to AYs 2013-14, 2017-18, 2018-19 and 2019-20. As there was no reference to seized material nor any statement recorded during the search or during the proceedings for the A.Ys under consideration, the CIT(A) held that the Assessing Officer was not justified in assuming jurisdiction u/s 153C of the Act and therefore the proceedings initiated u/s 153C was void ab initio and held as under: "5.2.2 In view of the above, it has been seen that the addition made by the assessing officer is without incriminating material/evidence found during the search proceedings, The additions have been made on the basis of certain documents pertaining to A.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al error in the findings of the ld. CIT(A). The ld. DR, however, heavily relied on the decision of the Hon'ble Delhi High Court in the case of Chetan Das Laxman Das order dated 07.08.2012 to buttress the point that extrapolation on the basis of seized documents can be made in A.Ys where no seized material was found. 9. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. The ld AR pointed out to the order of the Assessing Officer to show that AO himself admits in his order that the seized incriminating material pertained to AY 2013-14, 2017-18, 2018-19 and 2019-20 only. The ld AR further contended that the seized documents pertaining to different AYs was utilized for making addition in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods under assessments". We find that the AO has made the additions on the basis of assumption and inference when he further writes that "it can be safely inferred that assessee is engaged in suppression of sales since AY 2013-14 and it cannot be said that for AY 2014-15,2015-16 and 2016-17 the assessee has not suppressed sales." (emphasis supplied).The ld. DR could not rebut this pertinent fact that there is a total absence of reference to any incriminating material for the impugned AYs. The fact that emerges, therefore, is that the additions were made without any reference to incriminating material in the impugned A.Ys of 2014-15, 2015-16 and 2016-17. 12. The Hon'ble Supreme Court has set at rest the entire quarrel revolving around th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 costs." 13. The ratio laid down by the Hon'ble Supreme Court in the case of Abhisar Buildwell 454 ITR 212 (SC), [supra] squarely apply to the facts and circumstances of the instant case. The impugned addition is not based on any incriminating material found relevant to the A.Ys under consideration. Therefore, we do not find any reason to interfere with the findings of the ld. CIT(A) and consequently the action of the CIT(A) in quashing the orders of the AO is confirmed. However, it is pointed out that the CIT(A) has held that Assessing Officer was not justified in assuming j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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