TaxTMI 
TaxTMI 
2019 (4) TMI 1220
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....return of income on 1st July, 2013 declaring nil income. During the course of assessment proceedings, the Assessing Officer observed that during the search operations, it was observed that the assessee group has booked substantial expenses under the head 'Advertisement expenses.' He noted that some of the expenses did not appear to be genuine or justified. The A.O. noted that in the proceedings of the post search investigation, vide questionnaire dated 16th April, 2012, the assessee was asked to provide the details of the advertisement expenses. From the various details furnished by the assessee, it was observed that there are number of parties to whom advertisement expenses have been booked, but, no address or PAN have been provided. He, therefore, asked the assessee to explain as to why the advertisement expenses booked from such parties may not be treated as bogus due to the absence of evidence to prove the identity of the parties. Rejecting various explanations given by the assessee, the Assessing Officer made addition of Rs. 44,20,848/- treating the above advertisement expenses as not genuine and, therefore, he treated the sum as unexplained expenditure by invoking the provis....
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.....5% of the average investment and the balance amount was directed to be deleted. 9. Aggrieved with such order of the CIT(A), the Revenue is in appeal before the Tribunal by raising the following grounds:- 1. The order of Ld. CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs. 44,20,848/- made by the Assessing Officer on account of advertisement expenses. 3. On facts and circumstances of the case the Ld. CIT(A) has erred in law in restricting the addition made u/s 14A r. w. Rule 8D of I. T. Rules to Rs. 13,57,488/- out of total addition of Rs. 65,49,093/- thereby allowing relief to assessee of Rs. 51,91,605/- .(The AO had made an addition of Rs. 12,58,73,554/- u/s 14A r. w. Rule 8D of I. T. Rules which was subsequently reduced u/s 154 of IT Act to Rs. 65,49,093/-). 4. The appellant craves leave to add, amend any/all grounds of appeal before or during the course of hearing of the appeal. 10. The ld. counsel for the assessee, at the time of hearing, filed the following legal ground under Rule 27 of the ITAT Rules:- "1. That on the facts and circumstances of case, additions ma....
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.... CIT(A) the ground taken was "That on the facts and in the circumstances of the appellant's case, the assessing officer erred both in fact and in law in making addition of Rs. 14,71,74,622/- under section 153A of the Income Tax Act, 1961 while the case of the relevant assessment year was also assessed under sectionl43(3) of the Income Tax Act, 1961 without bringing in any incriminating material on record which belongs to the appellant pertaining to the relevant assessment year seized during the course of search and seizure operation. Hence,the addition of Rs. 14,71,74,622/- on account of various grounds is bad in law and liable to be deleted." 4. Ld. CIT(A) has rejected this ground by recording at para 4.1.1 of his order as under: " In this ground the appellant is agitating that the assessment has been framed u/s 153A r.w.s 143(3) without bringing any incriminating material on record that belonged to the assessee which has been seized during search & seizure operation. This is a repetitive ground. Similar ground has been raised for A. Y. 2008-09 and other years also. Vide my separate order dated 14.11.14 in the appellant's own case for A.Y 2008-09 (A.No. 357/14- 15), I have....
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.... the one which couldnot be raised earlier for bona fide reasons. (d) Additional ground should have a bearing on the quantification of the taxable income. In the light of the above it is respectfully submitted that additional grounds raised by the assessee may not be admitted." 12.1 She accordingly submitted that the additional ground raised by the assessee be dismissed and the order of the A.O. be restored. 13. We have considered the rival arguments made by both the sides and perused the orders of the authorities below. We have also considered the various decisions cited before us. We find that under identical circumstances, the Tribunal in assessee's own case for assessment year 2008-09 to 2010-11, vide ITA Nos.832,863 & 864/Del/2015 filed by the Revenue, has decided the issue and the appeals filed by the Revenue have been dismissed. The relevant observation of the Tribunal at para 8 of the order is being reproduced as under:- "8. We have considered the rival submissions made by both the sides and perused the material available on record. A bare perusal of the assessment order shows that there is no mention of any incriminating material found during the course of search wi....