2012 (10) TMI 1050

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....ompany belongs to the Thapar Group of cases. Action u/s 132 of the Income Tax Act, 1961 was carried on in the case of Sh. B.K.Dhingra, Smt. Poonam Dhingra & M/s Madhusudan Buildcon Pvt. Ltd. on 20.10.2008. On the basis of documents found during the course of search, proceedings were initiated in the case of assessee company u/s 153C. The AO made additions on account on unexplained purchases, disallowance on expenditure, among other additions/disallowances. The First Appellate Authority in his order has deleted these additions on merits. 3. Aggrieved, the revenue is on appeal on the following grounds for the AYs 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 & 2008-09:- "(1) That the Commissioner of Income Tax (Appeals) erred in law and o....

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.... same were part of working papers of the C.A Sh. B.K.Dhingra in whose office the search was conducted. Hence, the notice issued U/s 153C, based on said documents, is illegal, bad in law and without jurisdiction. (3) That admittedly, as recorded in the satisfaction note, no seized documents related to the relevant assessment year was found and the seized paper referred in the said satisfaction note were duly reflected in the regular books of A/c and no incriminating material was found. Hence the notice issued U/s 153C is illegal, bad in law & without jurisdiction. (4) That in view of the facts & circumstances of the case the CIT(A) has erred on facts and in law in holding that the assessment has been framed in conformity with statut....

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....ee that the finding of the Tribunal in the case of M/s Blue Luxury Index Pvt. Ltd, (supra) cover the issue on hand.   6. The Tribunal at para 6 to para 8 of that order in ITA No.-5495- 5500/Del./2011, its held as follows:- "6. We have heard the learned DR and have gone through the facts of the case. Indisputably & as pointed out by the ld. CIT(A), the entire purchases added by the AO are accounted for in the books of account. The AO, without rejecting the books results added the entire purchases, source of which, according to learned CIT(A), was duly explained. Likewise, the learned CIT(A) found that sales had been made by account payee cheques and duly reflected in stock registers and supported by sales and purchase vouchers.....

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....enditure incurred in purchases is obviously explained. In the light of view taken in the their aforesaid decision by the Hon'ble jurisdictional High Court ,especially when the Revenue did not place any material before us, controverting the aforesaid findings of facts recorded by the ld. CIT(A) so as to enable us to take a different view in the matter, we have no basis to interfere. In view thereof, ground nos.1 & 2 in the appeal are dismissed.   7. As regards disallowance of expenses in these six assessment years, the ld. CIT(A) found that in the assessment of the assessee for AY 2002-03, no disallowance of expenses was made while the AO ,in the years under consideration, did not point out any item of expenditure, warranting dis....