2014 (1) TMI 548

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....d Commissioner of Income Tax (Appeals) has erred in law and in facts in passing the order u/s. 250 of the Act. 2. The learned CIT(A) has erred in law and in facts in passing the assessment order in gross violations of principles of natural justice. 3. The learned CIT (A) has erred in law and in facts in not holding that the addition amounting to Rs.5,90,538/- cannot be made in the proceedings u/s. 143 (3) r.w.s. 153A of the Act as the same is not on the basis of evidence found during the course of search and hence beyond jurisdiction. 4. The learned CIT (A) has erred in law and in facts in confirming the addition of Rs. 5,90,538/ u/s. 68 of the Income tax Act on account of gift of SBI Resurgent India Bonds received from Mr. Minesh Shah."....

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....s already been subject matter of scrutiny in the original assessment order passed under section 143(3), then no addition can be made in the assessment order passed under section 153A, without there being any material found in the course of search in connection with such an issue and, hence, no addition can be sustained. In support of his contention, he relied upon the decision of Hon'ble Rajasthan High Court in Jaysteel India v/s ACIT, [2003] 259 CTR (Raj.) 281 and Special Bench decision of the Tribunal, Mumbia, in All Cargo Global Logistics Ltd. v/s DCIT, ITA no.5108 to 5022/Mum./2010, vide order dated 6 th July 2012. 4. On the other hand, the learned Departmental Representative relied upon the decisions of Hon'ble Delhi High Court in Mad....

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....urse of search but not produced in the course of original assessment. In other words, if the material has been considered in the course of original assessment proceedings, then without any further incriminating material, addition cannot be made in the assessment order passed under section 153A. This proposition has been independently discussed and analysed by the Hon'ble Rajasthan High Court in case of Jay Steel (Supra) also, wherein the Hon'ble High Court came to the following conclusion:- 25. In the firm opinion of this Court from a plain reading of the provision along with the purpose and purport of the said provision which is intricately linked with search and requisition under ss. 132 and 132A of the Act, it is apparent that: (a) the....