TaxTMI 
TaxTMI 
2017 (5) TMI 1047
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....t correct in law and facts. 2. On the facts and circumstances of the case the Ld. CIT(A) has erred in deleting the addition of Rs. 1,46,38,000/- made by AO on account of deemed dividend u/s. 2(22)(e) of the I.T. Act. 3. On the facts and circumstances of the case the ld. CIT(A) has erred in deleting the addition of Rs. 18,72,000/- made by the AO on account of benefit/ perquisite u/s. 2(24)(iv) of the I.T. Act. 4. The appellant craves leave to add, amend any / all the grounds of appeal before or during the course of hearing of the appeal. 3. The grounds raised in the Assessee's Cross Objection read as under:- 1. On the facts and circumstances of the case and in law, the notice u/s 153A issued in this cas....
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....ovisions of section 2(24 )(iv) of Income Tax Act, 1961. 6. On the facts and circumstances of the case and in law, the addition of Rs. 18,72,000/- made by AO by the assessing officer is beyond the scope of provision of section 153A of Income Tax Act, 1961. The appellant craves leave to add, alter, modify or delete one or more ground before or at the time of hearing of appeal. 4. The brief facts of the case are that a search and seizure operation u/s. 132 of the I.T. Act, 1961 in the Amarpali Group of Cases on 09/09/2010. The assessee was also covered in the search. Return declaring income of Rs. 91,10,630/- was filed on 20.8.2008. Notice u/s. 153A was issued on 20.7.2011, in response to which the assessee filed a letter ....
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....l.) wherein the Hon'ble High Court has held that if the additions are made, but not based on any incriminating material found during search operation, then these additions are not sustainable in the eyes of law. He further stated in the present case the AO has made the addition in a proceeding under section 153A, without there being any incriminating material found during the course of the search in respect of such addition. 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. and therefore, the assessment order passed by the AO, is bad in law and....
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.... the Hon'ble Delhi High Court in the case of Commissioner of Income Tax vs. Kabul Chawla (2016) 380 ITR 573 (Del.) wherein the Hon'ble High Court of Delhi has 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 reassess....
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....ending assessments are concerned, the jurisdiction to make the original assessment and the assessment 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 A....