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of <h1>ITAT Delhi rules in favor of assessee, directs AO to delete additions of foreign travel expenses</h1> The Appellate Tribunal ITAT Delhi allowed five separate appeals by the assessee against orders of the CIT(A)-27, Delhi for A.Y. 2011-12 to 2015-16. The ... Assessment u/s 153A - incriminating material found at the time of search or not? - HELD THAT:- It is not in dispute that the impugned additions are devoid of any incriminating material whatsoever found at the time of search. There is not even a whisper of any incriminating evidence found at the time of search basis which the AO made the addition. The ratio laid down by the Hon’ble High Court of Delhi in the case of Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] squarely apply on the facts of the case. Appeal of assessee allowed. Issues Involved:Appeals against addition of foreign travelling expenses as unexplained expenditure u/s. 69 C of the Act in Assessment Order framed u/s. 153 A of the Act.Analysis:The Appellate Tribunal ITAT Delhi heard five separate appeals by the assessee against orders of the CIT(A)-27, Delhi for A.Y. 2011-12 to 2015-16. The common grievance in all appeals was the addition made by the AO on account of foreign travelling expenses as unexplained expenditure. The AO estimated the expenses during assessment proceedings post a search and seizure operation in Nayyar Group cases. The assessee challenged the assessment before the CIT(A) unsuccessfully.During the proceedings, the assessee argued that since the search occurred before the assessment years under consideration, any addition under section 153A of the Act should be based on incriminating material found during the search. The DR supported the AO's findings but couldn't establish the additions were based on incriminating material. The Tribunal noted that the assessment years were completed assessments and that the additions lacked any incriminating material found during the search. Citing the legal position from previous judgments, the Tribunal directed the AO to delete the additions in all assessment years, finding parity with the Delhi High Court's decision in a similar case.In conclusion, the Tribunal allowed all the appeals, directing the AO to delete the additions in question.
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