TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 1627
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....al premises of the assessee on dated 11.02.2016 and the business premises of other concerns/persons of Bhagwati Group of Ferozepur. During the course of search, certain typed balance sheets/trial balances etc. in the computers installed at the respective business premises of M/s. Bhagwati Lacto Vegetarian Exports Pvt. Ltd., Ferozepur Cantt. in short will be referred as 'BLVE' and M/s Bhagwati Lacto Foods Pvt. Ltd., the two companies in which the assessee later became substantive shareholder were found and seized. As per Revenue most of the figures of raising of funds as per the documents did not tally with the audited balance sheet of the respective company. While examining the assessee's balance sheet, it was noticed that the asses....
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....vide impugned order on the same footing as held by Assessing Officer , upheld the addition. 4. The Assesse challenged the impugned order and while relying upon the judgment of Delhi High Court in the case of CIT vs. Kabul Chawala 61 taxmann.com 412, reiterated the same contentions as raised before the authorities below. 5. On the contrary, the Ld. DR relied upon the various judgments and submitted that though the incriminating material was recovered during the time search operation, however in law there is no necessity of any incriminating material while initiating proceedings u/s 153 of the Act as by various High Courts and the addition can be made without any incriminating material qua the years covered by Sec.153A. The Ld. DR finally a....
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....essment proceeding for the year under consideration is pending, in that eventuality, in the absence of any incriminating evidence found during the course of search and seizure proceedings, no addition/disallowance can be made qua unabated assessment for the said year, however the authorities below held that as per Kerala high Court judgment in the case of Kerala High Court in the case of 'E.N. Gopal Kumar vs. CIT(Central)' (Supra), there is no condition that the Department has to unearth some incriminating material to conclude some method against the assessee in events where the assessment is triggered by a notice under Section 153(1)(a) of the Act. 7. The question involved in the instant case relates to the issue , where no assessment pro....
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....ever, as per decision of Hon'ble Apex Court in the case of CIT Vs. Vegetable Products 88 ITR 192 , wherein the Hon'ble Court laid down the proposition to the effects "whenever there are two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted" meaning thereby when two different views of Court are available on an issue then the view which favors the assessee or the judgment which favours the assessee should be followed, we do not have hesitation to follow the judgment of Hon'ble Delhi High Court rendered in the case of CIT(Central-3) vs. Kabul Chawla (supra) wherein clearly held that if on the date of search, the assessment proceedings already stood completed and no ....