TaxTMI 
TaxTMI 
2017 (12) TMI 1059
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....r referred to as 'the Act' for short] on 28.12.07 in the case of the assessee. In the appeal filed by the assessee against the said order, Ld. CIT(A) Meerut vide his order dt.29.06.09 deleted both the additions which are under consideration in this appeal. The Revenue challenged the same before this Tribunal being ITA No.3794/D/2009 and the assessee also filed cross objections bearing CO No.365/D/2009. Both the matters were decided by the ITAT vide common order dated 01.07.11. The ITAT, vide Para-34 of its order remitted all legal issues challenging the validity of the notice u/s.153A to the file of the CIT (A) for deciding the same afresh with a direction that the assessee shall be at liberty to raise any other contentions before t....
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....l, hence, outside the scope of examination and addition U/s. 153 A. ii. That under the facts and circumstances, the approval U/s. 153 D being mechanical, without application of mind and without giving an opportunity of hearing makes the impugned Asstt. Order invalid and unsustainable in law. iii. That under the facts and circumstances, addition of Rs. 4 lacs for gift received from Smt. Laxmi Agarwal is un - sustainable in law as well as on merits. iv. That under the facts and circumstances, addition of Rs. 3.50 lacs for gift received from Sh. Kesho Ram Gupta is un - sustainable in law as well as on merits. 5. The Ld. AR, while arguing Ground No.1, submitted that AY 2003-04 was an unabated AY. It has been submit....
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....AVATAR VERMA 395 ITR 252 (DEL.), for the proposition that in the case of an unabated AY, the addition can be made only on the basis of any incriminating material found during search. The Ld. AR also placed reliance on the case of PR. CIT VS. WORLD WINDOW IMPEX INDIA (P) LTD. IN ITA NO.175/2016 decided by Hon'ble Delhi High Court vide order dt.09.03.16 for the proposition that even if the original return was processed u/s.143 (1) and not u/s.143 (3), the legal position as held in Kabul Chawla (Supra), remains unaltered. In view of these submissions, the Ld. AR argued that since both the additions in appeal do not emanate from any seized material found during the course of search and A.Y.2003-04 being an unabated AY, therefore, both the addit....
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....vely, on 22.07.02. No incriminating material was found and seized during search relating to these two gifts. The credits in the bank a/c in respect of these two gifts were noticed by the A.O. during the course of impugned proceedings u/s.153A, while examining the regular bank account of the assessee. The perusal of copies of various panchnamas executed during the course of search as placed before us vide Pgs.1-14 of the paperbook, reveals that cash and jewellery were found during search. From the copy of capital account for AY 2003-04, it is apparent that gifts of Rs. 7,50,000/- appears in the capital account being received in this year through cheques. Thus, all these facts clearly show that firstly, it was an unabated AY and secondly, tha....
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....la (Supra) also covers the situation where, prior to search, no assessment u/s.143 (3) was passed for the year under consideration. In result this ground of appeal stands allowed. 9. Since we have allowed the ground no1, other grounds do not require any adjudication. 10. In result the appeal of the assessee stands allowed. A.Y.2004-05 11. The facts and circumstances as well as the background of appeal of this year are also similar to that of A.Y.2003-04. The concise/consolidated/revised grounds of appeal as taken by the assessee are also similar which are as under:- i. That under the facts and circumstances, this being an unabated year within the meaning of 2nd proviso to Sec. 153 A, both the additions under considerati....
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....as filed in August 2004 and the notice u/s.143 (2) could have been issued on or upto 31.08.05. It is submitted that no notice u/s.143 (2) was issued till that time and no proceedings were pending for A.Y.2004-05 as on the date of search i.e. 27.10.05. It is further submitted that no incriminating material was found and seized for these three gifts totaling Rs. 29,00,000/- during search and the said gifts were received through cheques. Thus it has been contended that it is also an unabated assessment and since the additions for the gifts is not emanating from any seized material found during the course of search therefore, the issue of examination of these three gifts with reference to sec.68 of the Act or otherwise is outside the scope of a....