TaxTMI 
TaxTMI 
2021 (8) TMI 808
X X X X Extracts X X X X
X X X X Extracts X X X X
....g the provisions of Section 153A of the l.T. Act, 1961 which requires the total income to be brought under tax without any restrictions. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in holding that such assessment or re-assessment U/S.153A of the l.T. Act, 1961 is to be restricted to the incriminating material found during the search. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 44,95,000/- made on account of unexplained cash credits u/s.68 of the Act. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,18,34,0007- made on account of unexplained money u/s.69 of the Act. 5. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the addition without considering the facts that the whole transactions were nothing but an act of routing of unaccounted cash of SIPL in books of SIPL, Siddham Finance and other family concern bank account via a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee preferred an appeal to the learned CIT (A). 6. The assessee before the learned CIT (A) submitted that there was no incriminating material/document found during the course of search pertaining to the year under consideration. Therefore there cannot be any addition in the proceedings initiated under section 153C of the Act in the year under consideration. 7. The learned CIT (A) after considering the submission of the assessee deleted the addition made by the AO by observing as under: 6. The Second ground of appeal is against the addition on account of alleged unexplained cash credit u/s.69of the Act Rs. 1,18,34,000/-.lt was submitted that during the course of search proceedings, no incriminating material as regards to cash deposits and withdrawals during the year under consideration was found and seized The MS Excel sheet which the A.O is referring to in the entire assessment order is pertaining to a limited period falling under AY.2011-12, hence making it amply clear that there was no incriminating material for the year under consideration. Hence, the addition made by the AO in respect of cash deposits during the year u/s. 68 while framing assessment order u/s.143(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....order, it reveals the fact that the AO has not identified any of the seized material and/or incriminating material found and seized during the course of search proceedings in respect of unsecured loan received during the year under consideration from the five parties as stated above. On going through the case laws relied upon by the appellant, it is found that the appellant's case is squarely covered by the above mentioned judgments. The appellant in support of the aforesaid contention that in absence of any incriminating material and/or seized material found during the course of search proceedings in respect of unsecured loan received during the year under consideration, the addition made by the AO on account unexplained cash credit u/s. 68 of the Act for an amount of Rs. 44,95,000/- is not justified, hence, deleted. This ground of appeal is allowed. 8. Being aggrieved by the order of the learned CIT (A), the Revenue is in appeal before us. 9. Both the learned DR and the AR before us vehemently supported the order of the authorities below as favourable to them. 10. We have heard the rival contentions of both the parties and perused the materials available on record. W....
X X X X Extracts X X X X
X X X X Extracts X X X X
....minating material which reveals undisclosed income. Thus, while in view of the mandate of sub-section (1) of section 153A of the Act, in every case where there is a search or requisition, the Assessing Officer is obliged to issue notice to such person to furnish returns of income for the six years preceding the assessment year relevant to the previous year in which the search is conducted or requisition is made, any addition or disallowance can be made only on the basis of material collected during the search or requisition. In case no incriminating material is found, as held by the Rajasthan High Court in the case of Jai Steel (India) (supra), the earlier assessment would have to be reiterated. In case where pending assessments have abated, the Assessing Officer can pass assessment orders for each of the six years determining the total income of the assessee which would include income declared in the returns, if any, furnished by the assessee as well as undisclosed income, if any, unearthed during the search or requisition. In case where a pending reassessment under section 147 of the Act has abated, needless to state that the scope and ambit of the assessment would include any or....