TaxTMI 
TaxTMI 
2019 (4) TMI 764
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....y stated, search operation u/s 132(1) of the Act was carried out on the Mittal group of cases on 16.1.2009 in which the residential premises of the assessee was also covered. Thereafter notice u/s 153A of the Act was issued to the assessee in response to which return declaring income of Rs. 2,08,940/- was filed by the assessee. Notices were issued thereafter for assessing the income of the assessee u/s 142(1) and 143(2) of the Act alongwith detailed questionnaire. Meanwhile it was seen that the accounts of the group concern and the seized documents were complex in nature and hence in the interest of revenue the case of the group including the assessee was referred to the special auditor u/s 142(2A) of the Act. The audit report u/s 142(2A) w....
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....ome (Appeal) (Central), Gurgaon grossly erred and his action is unjustified and illegal in addition of Rs. 5,00,000/- on account of unexplained cash credit u/s 68 on the basis of Bank statement. As in replied by the assessee that section 68 did not apply to assessee, along with bank statement did not constitute any books of accounts and that the cash deposit in bank account by all three joint holders, but Ld. CIT (A) ignored it. So, this addition is highly unjustified. Therefore, the addition of Rs. 5,00,000/- is prayed to be deleted. 4. That the Ld. Commissioner on Income (Appeal) (Central), Gurgaon grossly erred and his action is unjustified and illegal in addition of Rs. 5,00,000/- on account of unexplained cash credit u/s 68 on....
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....n marked A-2 was found and seized, pages 82 to 89 of which pertained to a sale deed in respect of land purchased by the assessee in village Dhakoli alongwith the other co-owners. The Ld. DR also pointed out that the assessee has made disclosure of Rs. 1,63,400/- on account of the same. 8. Having heard the rival contentions, we agree with the Ld. counsel for assessee that the additional ground raised before us is a legal ground and since no fresh facts need to be considered for adjudication of the same, we have no hesitation to admit the same for adjudication. The objection of the Ld. DR is only an argument for the purpose of adjudicating the issue raised in the additional ground and, therefore, cannot be considered at the stage of admiss....
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....quiry when the copies of bank accounts were submitted and it was noted therefrom that there were cash deposits and unsecured loans taken by the assessee in the bank accounts, the explanation of which was sought from the assessee and found to be unsatisfactory. The Ld.Counsel for the assessee thereafter pointed out that there was no pending assessment relating to the impugned year as on the date of search and, therefore, in view of the above facts and in view of various judicial decisions in this regard, no addition unconnected with any material seized during the course of search could have been made in the hands of the assessee. Our attention was drawn to paras 6, 7 and 8 of the assessment order wherein the additions on account of cash depo....
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....which the assessee had contended that the payment was made out of the very same bank account in which there were unexplained cash deposits. In these facts and circumstances, therefore, the Ld. DR contended that the addition made on account of unexplained cash deposits in the bank could not be seen in isolation but were related to the investment found to have been made by the assessee from earlier undisclosed cash credits during the course of search and, therefore, it could not be said that the addition was not based on any incriminating material found during the course of search. 12. We have heard the rival contentions and perused the orders of the authorities below. The assessee ,in its additional ground has challenged the addition made....
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....ot found during search but the information was obtained in the course of special audit conducted u/s 142(2A) of the Act. 15. In the light of the above facts we find merit in the contention of the Ld.Counsel for the assessee that the addition u/s 68 of Rs. 13,70,000/-was not based on any incriminating material found during search and since admittedly the assessment for the impugned year had not abated, no addition therefore could have been made on account of the same. 16. We do not find any merit in the argument of the Ld.DR that that the addition made on account of unexplained cash deposits in the bank could not be seen in isolation but were related to the investment found to have been made by the assessee during the course of search ....