2019 (1) TMI 638

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....ears 2007-08 and 2008-09 in the case of Best City Realtors India Pvt. Ltd. 2. The brief facts of the case/s are that search and seizure operation was carried out in the business premises of the Best Group of cases on 15.09.2008. Subsequently, assessment orders u/s 153A of the Income Tax Act, 1961 (hereinafter called the 'Act') were passed. Another search and seizure operation u/s 132 of the Act was carried out on 28.03.2011 at the business premises of the Best Group and assessments u/s 153C of the Act were completed on 28.03.2013 in the following cases: Sl. No. Name of the Assessee A.Y. 1 Best City Infrastructure India Ltd. A.Y. 2005-06 to A.Y. 2008-09 2 Best City Developers India Pvt. Ltd. A.Y. 2007-08 to A....

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....tion in the hands of the assessee/s. Since the legal issue was decided in favour of the assessee, no further appeal/s were preferred by the assessees now in appeal before us and no appeals were filed by the revenue also. 2.4 Thereafter, the assessees filed applications before the AO for giving the appeal effect requesting the AO to give effect to the order/s of the Ld. CIT (A). 2.5 However, the AO disposed of the said applications vide order dated 27.04.2017 stating that the order/s by the Ld. CIT (A) had been passed in the favour of revenue and thus the effect to the application/s of the assesse companies cannot be granted and that the demand/s raised by the AO remained as they were. 2.6 Aggrieved, the captioned assessees approach....

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.... the cases of the above two assessees who are now appeal before us that the Ld. CIT (A) has decided the appeals in favour of the assessee/s by holding that since there was no incriminating material found during the course of search and seizure which could be said to be belonging to the assessee/s, there cannot be any additions in the hands of the assessee/s. On the other hand, the Ld. CIT (A) has confirmed the additions on merits. This is contrary to the settled legal position that if the appeals are allowed on the legal ground, then additions on merits cannot be sustained. The Ld. CIT (A) has, thus, given contradictory findings in the same appellate order. Further, it is also settled law that an order giving effect to the appellate order i....

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....make a fresh order of assessment complying with the directions given by the appellate authority. It is thus clear that what remains as a final order after giving effect to the orders of the appellate authorities is an order of assessment under Section 143 or 144. It cannot be anything else." 5.1 A similar view was taken by the Hon'ble Delhi High Court in the case of CIT Vs. John Tinson & Co. Pvt. Ltd. in ITA 418/2009 wherein the Hon'ble Delhi High Court has referred to and approved the said judgment of the Hon'ble Bombay High Court. Therefore, respectfully placing reliance on the judgment of the Hon'ble Bombay High Court in the case of Caltex Oil Refining (India) Ltd. vs. CIT (supra), we hold that the Ld. CIT (A) was legally incorrect in....