Tribunal quashes assessment orders, deletes additions, and allows assessee's appeals for various assessment years.

The Tribunal quashed the assessment order for A.Y. 2011-12 due to invalid reopening. Additions made for A.Y. 2012-13 to 2016-17 without incriminating materials were directed to be deleted. The addition of long-term capital gains for A.Y. 2017-18 was deleted for lack of evidence. Additions based on Settlement Commission application and education cess were also deleted. Unexplained cash expenditure and credit additions for A.Y. 2018-19 were reduced and deleted, respectively. The appeals by the assessee were allowed for earlier years, and partly allowed for later years, while Revenue's appeals were dismissed.

---

---

Issues Involved:
1. Validity of reopening of assessment for A.Y. 2011-12.
2. Validity of additions made in A.Y. 2012-13 to 2016-17 in the absence of incriminating materials.
3. Addition made u/s 68 of the Act in respect of Long term capital gains for A.Y. 2017-18.
4. Addition based on information found in the application filed before Income tax Settlement Commission for A.Y. 2017-18.
5. Charging of Education cess for A.Y. 2017-18 and 2018-19.
6. Addition u/s 69C (unexplained cash expenditure) for A.Y. 2018-19.
7. Addition u/s 68 (cash received from Mr. Sandeep) for A.Y. 2018-19.

Detailed Analysis:

1. Validity of Reopening of Assessment for A.Y. 2011-12:
The assessee challenged the validity of reopening the assessment for A.Y. 2011-12, arguing that the original assessment was completed under section 143(3) and the reopening notice was issued after four years without showing any failure on the part of the assessee to disclose material facts. The Tribunal found discrepancies in the reasons provided by the AO for reopening and concluded that the reopening was based on mere suspicions and not valid. Consequently, the assessment order was quashed.

2. Validity of Additions Made in A.Y. 2012-13 to 2016-17 in the Absence of Incriminating Materials:
The assessee contended that the additions made in these years were invalid as they were not based on any incriminating material found during the search. The Tribunal upheld this argument, citing the legal precedent that in the absence of incriminating material, the AO cannot disturb completed assessments. The Tribunal directed the AO to delete the additions made for these years.

3. Addition Made u/s 68 of the Act in Respect of Long Term Capital Gains for A.Y. 2017-18:
The AO added the sale consideration of Rs. 4.85 crores received on the sale of shares as income, treating it as accommodation entries based on a report from the investigation wing. The Tribunal found that the assessee had provided sufficient documentary evidence to prove the genuineness of the transactions. Following the jurisdictional High Court's decision in the case of Shyam Pawar, the Tribunal directed the AO to delete the addition.

4. Addition Based on Information Found in the Application Filed Before Income Tax Settlement Commission for A.Y. 2017-18:
The AO made an addition of Rs. 25.50 lakhs based on the application filed before the Income Tax Settlement Commission. The Tribunal, citing a similar case, held that additions cannot be made solely based on voluntary disclosures before the Settlement Commission without supporting evidence. The addition was deleted.

5. Charging of Education Cess for A.Y. 2017-18 and 2018-19:
The Tribunal rejected the assessee's claim for deduction of Education Cess, following the retrospective amendment brought by the Finance Act, 2022, which clarified that education cess is not allowable as a deduction.

6. Addition u/s 69C (Unexplained Cash Expenditure) for A.Y. 2018-19:
The AO added Rs. 1,01,94,974/- as unexplained cash expenditure based on expenses found in the assessee's laptop. The Tribunal noted that these expenses were likely incurred in earlier years and estimated that only 10% of the expenses should be disallowed for A.Y. 2018-19. The addition was accordingly reduced.

7. Addition u/s 68 (Cash Received from Mr. Sandeep) for A.Y. 2018-19:
The AO added Rs. 40,75,000/- as unexplained cash credit based on a statement sheet found during the search. The Tribunal found that the transactions related to earlier years and not to A.Y. 2018-19. The addition was deleted.

Conclusion:
The Tribunal allowed the appeals filed by the assessee for A.Y. 2011-12 to 2016-17 and partly allowed the appeals for A.Y. 2017-18 and 2018-19. The appeals filed by the Revenue were dismissed.

---