2013 (4) TMI 268

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....s directed to be served through the department. As per the letter dated 05/10/2012 of the ACIT, Circle - 1(1), Tirupathi, accompanied by the acknowledgement slip, which are kept on record, it appears that the notice of hearing of the above said appeals was served on the assessee on 27/09/2012. However, on the date of hearing no one appeared on behalf of the respondent-assessee. Even an adjournment petition was also not filed by the assessee. In these circumstances, we proceed to dispose of the appeals on merit after hearing the learned Departmental Representative. 3. Briefly the facts are, the assessee is a Pvt. limited company engaged in the business of real estates. For the assessment year under dispute a return of income was filed by th....

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....d shown loan of Rs. 16,50,000/- from 5 creditors. As the assessee could not explain the identity of the person, the genuineness of the transaction and the creditworthiness of creditor by producing necessary evidence, the Assessing Officer added the amount of Rs. 16,50,000/- to the income of the assessee. That besides the Assessing Officer also disallowed the following expenses claimed under different heads:     (Amount in Rs.) 1. Salaries and travelling 8,607/- 2. Land development expenses 2,97,550/- 3. Printing and stationery 15,000/- 4. Brokerage 44,000/- The assessee being aggrieved of the assessment order, preferred appeal before the CIT(A). 4. In course of hearing of appeal before the CIT(A), it was contended....

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....8. 5. The CIT(A) accepted the assessee's contention that the share application money, loan creditors and expenses claimed being part of the original return of income which was accepted by the department, the Assessing Officer could not have made the additions while completing the assessment u/s 143(3) read with section 153C of the Act as he did not possess any seized material or evidences to make the additions of share applications money, creditors and other expenses. He,therefore, directed the Assessing Officer to delete the additions made. 6. The learned Departmental Representative relying upon the decision of the Income-tax Appellate Tribunal, Hyderabad Bench in case of ACIT, Central Circle - 3, Hyd. V/s. M/s Ch Marthanda Rao & Co. ITA....

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....s. 585 to 597/Hyd/08 wherein the coordinate bench after considering the decision of Income-tax Appellate Tribunal, Kolkata Bench in case of LMJ International Ltd. (supra) and Income-tax Appellate Tribunal Vizag Bench in case of KGR Exports (supra) held that it is open to the Assessing Officer to compute income u/s 153A on the basis of entire material available on record and it is not required that the Assessing Officer should confine himself only to the material found during the course of search operation. Following the ratio laid down by the Hon'ble jurisdictional High Court in case of Gopal Lal Bhadruka (supra) and the coordinate bench in case of Ch. Marthanda Rao & Co. (supra), we hold that while completing assessment u/s 153C of the Act....