TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 270
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....ively. Since the issues involved in these appeals and cross objections are common, hence, the appeals and cross objections were heard together and are being disposed of by this common order for the sake of brevity, by dealing with Revenue's Appeal for AY 2009-10 and Assessee's Cross Objection for AY 2009-10. 2. The grounds raised by the Revenue in ITA No. 4666/Del/2016 (2009-10) read as under:- 1. The order of Ld. CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case, the CIT(A) has erred in quashing the order u/s. 153A of the Act. 3. On the facts and circumstances of the case, the CIT(A) has erred in relying on the order of Hon'ble Delhi High Court in case of Mr. Kabul Chawla as Section 153A does not ....
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.... b) Because the addition was made merely on the basis of statement of Sh. Pankaj Jain, GM (Marketing and Administration), whereas the transactions mentioned in the statement are not relevant for the proceedings of the current assessment year. c) Because AO has ignored the fact that the assessee had discharged the onus placed on it in respect of identity of contractee, genuineness of the transaction by way of deduction of TDS and payment made through banking channels. It is, therefore, prayed that the CO be allowed and revenue's appeal be dismissed." 5. In other Cross Objection of the Assessee, the grounds are exactly identical, hence, the grounds of other Cross Objection are not reproduced for the sake of brevity. REVENUE'S APPEAL ....
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...., assessee preferred an appeal before the Ld. CIT(A), who vide his impugned order dated 28.6.2016 has partly allowed the appeal of the asseseee. 8. Aggrieved with the order of the Ld. CIT(A), Revenue is in appeal and assessee is in Cross Objection before the Tribunal. 9. During the hearing, Ld. CIT(DR) relied upon the order of the AO and stated that the action of the Ld. CIT(A) for quashing the order u/s. 153A of the Act was not tenable. She further stated that Ld. CIT(A) has erred in relying on the order of the Hon'ble Delhi High Court in case of 'Kabul Chawla' as Section 153A does not restrict the assessment to incriminating documents. She further stated that Ld. CIT(A) also ignored the fact that the assessee has not been able to establ....
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....awla reported (2016) 380 ITR 573 (Del.) and Principal CIT, Delhi-2 vs. Best Infrastructure (India) P. Ltd. 397 ITR 82 (Delhi) 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 dispute in a proceeding under section 153C of the Act without there being any incriminating material found during the course of the search in respect of such addition. 11. 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 hereinabove. We f....
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....s and reassessments pending on the date of the search shall abate. The 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 co....