TaxTMI 
TaxTMI 
2017 (12) TMI 661
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....appeal. 2.1 Assessee has also raised the issue on the admission of additional grounds of Appeal vide its Application in which the assessee has stated that in view of the settled decision in the case of NTPC 229 ITR 383 (SC), (legal ground can be raised for first time in collateral and second round also). He further stated that the following additional grounds are purely legal and do not require fresh investigation of facts and therefore, the same may be admitted. "That Ld. CIT(A) as well as AO erred in law as well as on facts in sustaining or making addition u/s. 153A which was based on no search material. 4. It is well settled that the assessee can raise a legal ground or even fresh legal pleas or such legal questions at any stage of appellate proceedings. In support the appellant seeks to rely on the judgments of the Apex court in the case of CIT vs Varas International Pvt. Ltd. reported in 284 ITR 80(SC) and National Thermal Power Co Ltd vs CIT reported in 229 ITR 383 (SC). Recently Hon'ble ITAT Special Bench, Mumbai in the case of M/s All Cargo Global Logistics Ltd vs DCIT, ITA Nos 5018 to 5022 & 5059/M/10 has held that "If pure question of law arises for w....
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....Sanjay Jain and his brother Sh. Rajiv Jain, resident of I-42, Ashok Vihar, Phase-I, New Delhi. The main allegation against this group was that they had taken a large number of accommodation entries in various group companies by paying cash to the various entry operators. After recording the satisfaction note, a notice u/s. 153A of the Act was issued on 25.9.2009 to the assessee requiring it to file the return of income in the prescribed form. In response thereto, the assessee company vide letter dated 07.10.2009 submitted that the previous return declaring income at Rs. 790/- filed on 29.10.2005 may kindly be deemed as the return of income submitted in response to notice u/s. 153A of the Act. Notice u/s. 143(2) dated 25.9.2009 was issued to the assesse fixing the case for 08.10.2009. In response to the statutory notices u/s. 142(1) & 143(2) of the Act and questionnaire, the A.R. of the assessee attended the proceedings from time to time and filed the details. Thereafter the case was assessed at an income of Rs. 3,76,080/- after making certain disallowances vide his order dated 24.12.2009 passed u/s. 153A/143(3) of the I.T. Act, 1961. 7. Against the aforesaid assessment order dat....
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.... - PCIT v Nau Nidhi Overseas Pvt. Ltd.(ITA no. 58/2017)(Delhi) - SSP Aviation Ltd v DCIT (20 taxmann.com 214) (Delhi) - KamleshbhaiDharamshibhai Patel v CIT (2013) 31 taxmann.com 50 (Gujrat) - Rajesh Sunderdas Vaswani v ACIT(2016) 76 taxmann.com 311 (Gujarat) - CIT v Classic Enterprises 35 taxmann.com 244 (Allahabad) 10. We have heard both the counsel and perused the relevant records available with us, especially the orders of the revenue authorities and the cases referred by the Ld. Counsel of the Assessee as well as by the Ld. CIT(DR). We find that the additions made by the AO are beyond the scope of section 153A of the Income Tax Act, 1961, because no incriminating material or evidence had been found during the course of search so as to doubt the transactions. It was noted that 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. We also find that the case laws cited by the Ld. CIT(DR) are not relevant to t....
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....e total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in 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....