Assessee wins appeal on assessment order under section 153A; Department's appeal dismissed for 2003-04 assessment.

The Tribunal ruled in favor of the assessee, allowing the appeal on the legal issue related to the assessment order under section 153A and dismissing the department's appeal due to the invalidity of the assessment for the year 2003-04.

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Issues:
1. Disallowance of donation and bonus
2. Additional grounds challenging assessment order under section 153A

Analysis:

Issue 1: Disallowance of donation and bonus
The assessee appealed against the disallowance of a donation and bonus in the assessment order. The grounds raised by the assessee included challenging the confirmation of disallowance without considering documentary evidence and the timing of bonus payment. The assessee also sought allowance of the bonus in the next assessment year if disallowed in the relevant year. Additionally, the assessee raised objections on the basis of the Special Bench decision in the case of All cargo Global Logistics Ltd. The Tribunal admitted the additional grounds raised by the assessee, citing legal issues that did not require fresh investigation. The Tribunal referred to various case laws to support the admission of additional grounds as per the Supreme Court's ruling in National Thermal Power Co. Ltd. vs. CIT.

Issue 2: Additional grounds challenging assessment order under section 153A
The assessee contended that the assessment for the year 2003-04 was invalid as it was outside the scope of provisions under Section 153A(1)(b) of the Income Tax Act, which required assessments for the six years preceding the search year. The Tribunal agreed with the assessee's argument, noting that the assessment for the year 2003-04 was indeed invalid. As a result, the appeal of the department was dismissed, considering the tax effect involved and the CBDT Circular No. 21 of 2015. The Tribunal allowed the assessee's appeal on the legal issue, leading to the dismissal of the department's appeal.

In conclusion, the Tribunal ruled in favor of the assessee, allowing the appeal on the legal issue related to the assessment order under section 153A and dismissing the department's appeal due to the invalidity of the assessment for the year 2003-04.

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