2020 (2) TMI 158

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.... "1. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the reduction of value of stock/inventory by Rs. 1,80,84,869/- on account of brokerage, and Rs. 9,25,47,870/-, on account of compensation, without appreciating the fact that the assessee failed to substantiate the above expenses u/s.37(1) either at the assessment stage or at the appellate stage. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A) failed to appreciate that the Hon'ble Allahabad High Court has held in the case of Commissioner of Income-tax, Central. Kanpur v Raj Kumar Arora [2014] 52 taxmann.com 172 (Allahabad), after considering the Judgment given by the Hon'ble Del....

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.... 19.10.2010 and the case of assessee was also covered in the said search. Consequent to search, notice under section 153A of the Act was issued on 30.12.2011 and in compliance to that the assessee submitted return of income on 23.12.2012, declaring loss of Rs. 1,94,170/-. During the course of assessment proceedings, it was observed by the AO that assessee has disclosed purchase of land amounting to Rs. 54,99,64,194/-. On examination of the details regarding the said purchase of land, it is seen by the AO that assessee has taken brokerage amounting to Rs. 1,80,84,869/- and relinquishment of rights amounting to Rs. 14,66,55,370/- in the said purchase of land. The genuineness of such transaction/expenditure could not be explained by the ass....

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.... the other hand, Learned Counsel for the Assessee submitted that the issue is covered by the Judgment of Hon'ble Delhi High Court in the case of CIT Kabul Chawla (supra). 5. We have considered the rival submissions. In the case of CIT vs. Kabul Chawla (supra), the Hon'ble Delhi High Court has considered the following question of law : "2. The issue that the Court proposes to address in these appeals is the same that was considered by the ITAT viz., "Whether the additions made to the income of the Respondent-Assessee for the said A.Ys under section 2(22)(e) of the Income Tax Act, 1961 ('Act') were not sustainable because no incriminating material concerning such additions were found during the course of search and further no asse....

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....supra) which has been followed not only by this Court in its subsequent decisions but also by several other High Courts. 71. For all of the aforementioned reasons, the Court is of the view that the ITAT was justified in holding that the invocation of Section 153A by the Revenue for the AYs 2000-01 to 2003-04 was without any legal basis as there was no incriminating material qua each of those AYs. Conclusion 72. To conclude : (i)Question (i) is answered in the negative i.e., in favour of the Assessee and against the Revenue. It is held that in the facts and circumstances, the Revenue was not justified in invoking Section 153 A of the Act against the Assessee in relation to AYs 2000-01 to AYs 2003-....