TaxTMI 
TaxTMI 
2019 (6) TMI 350
X X X X Extracts X X X X
X X X X Extracts X X X X
....been filed by the Revenue explaining the reasons for condonation of delay. After perusing the condonation application and hearing both the sides, we condone the delay in filing the appeal of the revenue. 3. At the outset itself, it has been brought to our notice that this case is covered in assessee's own group cases for AYs 2009-10 to 2015-16 by this Tribunal. According to Ld. AR, there was a search u/s. 132 of the Income Tax Act, 1961 (hereinafter referred to as the "Act") which was search conducted on 17.03.2015 at the residence, offices, factories and other business concerns of the M/s. Inland Group and the assessment for these years were not pending before the AO on the date of search. Since it was not an abated assessment, the AO c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....led law, in sec. 153A assessment pursuant to search u/s 132 of the Act, for assessment years which are unabated assessments as in the present cases before us, no addition/disallowance can be made without the aid of incriminating materials unearthed during search qua these assessment years. In such a scenario, taking note of similar facts and law, we note that in assessee's own case in IT(SS)A Nos. 56 to 62/Kol/2017 for AYs 2009-10 and 2015-16 ACIT vs M/s. Inland World Logistics Pvt. Ltd. order dated 15.02.2019, the Tribunal has upheld the action of Ld. CIT(A) for AY 2009-10 to 2013-14 wherein similar facts & circumstances, the Tribunal decided as under: "2. At the outset itself, we note that this matter was fixed for hearing on 29.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ke any additions/disallowances, the ld. CIT-DR fairly admits that there were no incriminating materials the Assessing Officer referred in his order to make the additions/disallowances. In this background, we after having carefully examined each assessment orders from Assessment Year 2009-10 to 2013-14 and taking note that these assessment years were not pending before the Assessing Officer on the date of search, so we concur with Ld CIT(A) that these assessment years were unabated assessments and therefore the ld. CIT(A) was correct to hold that additions/disallowances cannot be made without the aid of any incriminating materials unearthed during search qua these assessment years. Therefore, in furtherance to section 153A proceedings, the A....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 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 course of the search, or other post-search material or information available with the AO which can be related to the eviden....
X X X X Extracts X X X X
X X X X Extracts X X X X
....agree with the view expressed by the Karnataka High Court that incriminating material is pre-requisite before power could have been exercised u/s 153(C) r.w Section 153(A). In the case before us, the AO has made a disallowance of the expenditure, which was held disclosed, for one reason or the other, but such disallowances made by the AO were upheld by the LD.CIT(A) but the Ld. Tribunal deleted these disallowance. We find no infirmity in the aforesaid Act of the Ld. Tribunal. The appeal is, therefore, dismissed". Hon'ble Delhi High Court in the case of Kurele Paper Mills Pvt. Ltd. has held as under: In a similar case M/s. Kurele Paper Mills Pvt. Ltd. addition was made by the AO (in sec. 153A proceedings) without incriminat....