TaxTMI 
TaxTMI 
2016 (6) TMI 450
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....of by this common order for the sake of brevity, by dealing with assessment year 2006-07. 2. The grounds raised in ITA No. 1462/Del/2014 for the assessment year 2006-07 read as under:- "1. On the facts and circumstances of the case and in law, the addition of Rs. 1,66,62,715/- made by the AO on account of alleged bogus purchase is beyond the jurisdiction of provisions of section 153A of the Income Tax Act, 1961 and CIT(A) erred in not holding so. 2. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of Rs. 1,66,62,715/- made by the AO on account of alleged bogus purchases. The assessee craves leave to add one or more ground of appeal, or to alter / modify the exis....
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....ferred as the Act) was conducted by the Investigation Wing of the Department in M/s Tegh group of cases on 26.04.2010 and simultaneously the assessee's business premises at 49, Udyog Vihar, phase-IV, Gurgaon, Haryana, was also covered u/s 132(1) of the IT Act, 1961. The case of the assessee was centralized u/s 127 of the IT Act, 1961 vide order F.No.CIT- IXlITO(HQ)/127/2010-11/809 dated 13.08.2010 and the jurisdiction over the assessee's case was assigned to the Assessing Officer, Central Circle-10 New Delhi. Thereafter, a notice u/s 153A of the IT Act, 1961 dated 13.04.2011 was issued and served upon the assessee, in response to which the assessee filed its return on 02.05.2011 declaring a total income of Rs. 6,29,87,718/-. Subsequ....
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....ncriminating material found during search operation, then these additions are not sustainable in the eyes of law. He further stated that the additions have no relation with any incriminating material found and undisclosed income or property discovered in the course of search and as such are bad in law being beyond the scope of jurisdiction u/s. 153A of the I.T. Act. In support of his contention, he filed a Paper Book containing pages 1 to 111 of Compilation of following Case laws by which the issue in dispute is squarely covered . - CIT vs. Kabul Chawal (Delhi High Court) (2015_ 61 taxmann.com 412 (Delhi). - CIT vs. Continental Warehousing Corporation (Nhava Sheva) Ltd. (2015) 58 Taxmann.com 78 (Bombay High Court) ....
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....ding for the year under consideration and the AO was not justified in disturbing the concluded assessment without there being any incriminating material being found in search. In fact, in the entire assessment order, the AO has not referred to any seized material or other material for the year under consideration having being found during the course of search in the case of assessee, leave alone the question of any incriminating material for the year under appeal. Therefore, in our considered opinion, the action of the AO is based upon conjectures and surmises and hence, the additions made on the assessed bogus purchases is not sustainable in the eyes of law, because this issue in dispute is now no more res-integra, in view of the decision ....
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.... the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously an ITA Nos. 707, 709 and 713 of 2014 of assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Ins....