TaxTMI 
TaxTMI 
2019 (3) TMI 1757
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....2.2017 for A.Y. 2014-15. The assessee assailing the order of the CIT(A) has raised before us the following grounds of appeal : 1. (a) That having regard to the facts and circumstances of the case, Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction and framing the impugned assessment order u/s 153A/143(3) of the Act is bad in law and against the facts and circumstances of the case and is not sustainable on various legal and factual grounds. (b) That in any case and in any view of the matter, additions made in the impugned order are beyond jurisdiction and illegal also for the reason that these could not have been made since no incriminating material has been found as a r....
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....ut in the case of other concerns/persons of Bhagwati Group, Ferozepur. Notice under section 153A of the I.T Act was issued to the assessee on 13.06.2017. In compliance, the assessee filed her 'return of income' on 09.07.2017, disclosing total income at Rs. 4,57,530/-. 3. During the course of the search and seizure proceedings carried out at the business premises of M/s Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Ferozepur Cantt. and M/s Bhagwati Lacto Foods Pvt. Ltd., certain incriminating documents in the shape of typed balance sheets/trial balances etc. in the computers installed at the respective premises of the aforementioned concerns were found and seized. On a perusal of the seized documents, it was observed that most of the figur....
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.... hearing of the appeal submitted that as no incriminating material pertaining to the assessee was found during the course of search and seizure proceedings, therefore, no addition under section 2(22)(e) was called for in the hands of the assessee. It was averred by the ld. A.R that on the date when the search and seizure proceedings were conducted no assessment proceedings were pending in the case of the assessee. In sum and substance, it was the claim of the ld. A.R that in the absence of any incriminating material found during the course of search and seizure proceedings, no addition could have been made in respect of the unabated assessment in the hands of the assessee. In support of the aforesaid contention the learned A.R placed relian....
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.... of the aforementioned company viz. M/s Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Ferozpur in the Financial year 2012-13. Rather, a perusal of the ledger account of the assessee as appearing in the 'books of accounts' of the aforesaid company viz., M/s Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Ferozpur reveals that she had received an amount of Rs. 1,00,000/-, vide Cheque No. 367197 drawn on CC A/c No. 65041938456 of the company with State Bank of Patiala, Ferozpur Cantt. Apart therefrom, a perusal of the order passed by the A.O fortifies the fact that no incriminating material was found during the course of search and seizure proceedings. 9. We have deliberated at length on the issue under consideration, and find that our indulgen....
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.... similar view had also been taken by the Hon'ble High Court of Bombay in the case of CIT vs. Murli Agro Product (ITA No. 36/2009) (Bom) and Commissioner Of Income-tax Vs. Continental Warehousing Corporation (2015) 374 ITR 645 (Bom). In the aforementioned cases, it has been observed by the High Court that as on the date of the initiation of search and seizure proceedings under section 132 of the IT Act, as no proceedings for the year under consideration were pending, therefore, in the absence of any incriminating evidence found during the course of search and seizure proceedings no addition/disallowance could have been made in respect of the unabated assessment of the assessee for the said year. In the backdrop of the aforesaid settled posit....