Tribunal rules for assessees in appeals against CIT(A) for assessment years 2001-02 & 2002-03

The Tribunal ruled in favor of the assessees in appeals against the CIT(A)'s order for assessment years 2001-02 & 2002-03. In both cases, involving additions under section 69A, the Tribunal deleted the additions as no incriminating material was found during the search, following a Special Bench decision. The appeals of the assessees were allowed.

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Issues involved: Three appeals by two different assessees against the order of CIT(A)-40, Mumbai for assessment years 2001-02 & 2002-03.

Case of Bhagaram P. Mali:
The assessee objected to the addition of Rs. 1,00,002/- u/s 69 of the Act for the assessment years 2001-02 & 2002-03. The AO noted gift receipts but found discrepancies in donor bank statements. The CIT(A) upheld the additions. The assessee argued that original assessments were final and no incriminating material was found during the search. The Tribunal agreed, citing the Special Bench decision, and deleted the additions.

Case of Samrathmal P. Mali:
Similar to the previous case, the assessee contested the addition of Rs. 1,00,002/- u/s 69A during assessment u/s 153A. The AO had not made any additions during the original assessment u/s 143(3). Following the precedent set in the previous case, the Tribunal deleted the additions for this assessee as well.

In both cases, the Tribunal ruled in favor of the assessees, deleting the additions made u/s 69A. The appeals of the two assessees were allowed.

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