2016 (1) TMI 1093

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....addition to the extent of Rs. 2,10,000/- on account of house hold withdrawals u/s 69C of Income Tax Act, 1961. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in not deleting the adhoc addition to the extent of Rs. 2,10,000/- fully as made by Ld. AO is bad in law and against the facts and circumstances of the case and in any case impugned addition is beyond the scope and jurisdiction of the impugned assessment order. 3. Without prejudice to the above grounds, additions/disallowances could not have been made in the present appeal because no incriminating material has been found as a result of search. 4. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time o....

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....earch and multiple government agencies like CBI, Enforcement Directorate, Delhi Police etc. were investigating the alleged fraud done by them during Common Wealth Games, New Delhi, 2010 by getting the contracts directly or indirectly for organizing, construction or conduction or any activity relating to the Common Wealth Games, 2010 and the Modus Operandi of almost all the companies was inflation of expenditures, showing investment and claiming expenditure by taking the help of Accommodation Entry Operators, etc. It was further stated that after considering bank statement found during the course of search, it was noticed by the AO that no withdrawals were made for house hold expenses. Therefore, the addition was rightly made by the AO and t....

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....Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla passed in ITA No. 707, 709 and 713/2014 held has under:- "37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned ITA Nos. 707, 709 and 713 of 2014 of decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six Ays immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for su....

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....t under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.On the date of the search the said assessments already stood completed. Since n....