TaxTMI 
TaxTMI 
2023 (7) TMI 333
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....on or disallowance was made on the basis of alleged seized documents nor any reference to seized material was made in connection with additions/ disallowances and also ignored the judgment of Hon'ble Delhi High Court in the case of Kabul Chawla (2016) 380-ITR-573 (Del). 3. That on the facts and in the circumstances of the case, the Ld. CIT(A)-5, Ludhiana has erred in confirming the addition of Rs. 7,40,000/- on merit as complete source of cash deposit have been explained. 4. The appellant craves leave to add, amend, alter or otherwise raise any other ground of appeal." 3. Grounds of appeal in ITA No. 162/Asr/2022 "1. That on the facts and circumstances of the case, the order passed by the Ld. CIT(A)-5, Ludhiana is bad both in the eye of law and on facts. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A)-5 Ludhiana has confirmed the additions made by the Ld. AO in the Assessment Order passed in absence of seizure of any incriminating document belonging to the appellant. Neither any addition or disallowance was made on the basis of alleged seized documents nor any reference to seized material was made in connection wi....
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.... assessee. Held by the Hon'ble Supreme Court in the recent judgment dated 24.04.2023 in the case of PCIT, Central-3 v/s Abhisar Buildwell Pvt. Ltd. Civil Appeal No.6580 of 2021. 2. On the facts and circumstances of the case and in law, the Ld. AO recorded his satisfaction u/s 153C without referring any incriminating material/ documents which pertains to the assessee and the impugned assessment order passed by the Ld. AO are without jurisdiction and void ab-initio and thus liable to the quashed. P r a y e r : The aforesaid ground of appeal is purely on legal issue and facts in relation to the same are already available on record. The additional ground of appeal is being raised by the appellant on being recently advised by the Legal counsel and the omission to raise the aforesaid additional ground of appeal earlier was neither wilful nor deliberate. The additional ground of appeal call for being admitted and adjudicated on merits in view of the discretion vested in your Honour under Rule 11 of the Income tax Appellate Tribunal Rules, 1963, the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Limited v/s CIT-22....
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....of the additional ground of appeal, the counsel rely on the Hon'ble Supreme Court in the case of Principal Commissioner of Income Tax, Central-3 v. Abhisar Buildwell P. Ltd. where it has been held vide para 13 and 14, as under: "13. For the reasons stated hereinabove, we are in complete agreement with the view taken by the Delhi High Court in the case of Kabul Chawla (supra) and the Gujarat High Court in the case of Saumya Construction (supra) and the decisions of the other High Courts taking the view that no addition can be made in respect of the completed assessments in absence of any incriminating material. 14. In view of the above and for the reasons stated above, it is concluded as under: i) that in case of search under Section 132 or requisition under Section 132A, the AO assumes the jurisdiction for block assessment under section 153A; ii) all pending assessments/reassessments shall stand abated; iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating materia....
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....s recorded that the documents seized have a bearing on the determination of the total income of the appellant assessee. Subsequently notice u/s 153C of the Income Tax Act, 1961 dated 25.02.2021 was received for the assessment year 2014-15. During the course of the assessment proceedings as well as appellate proceedings, it was submitted that no notice u/s 153C can be issued in absence of any incriminating material. It was further submitted that the issue of notice u/s 153C for the year under consideration is totally unjustified particularly when there is no incriminating document/ material as would also be evident from the assessment order also. The assessment was completed vide order dated 15.03.2022 passed u/s 153C of the Income Tax Act, 1961 and as per the said order, the income was assessed at Rs. 13,09,870/- after making addition of Rs. 7,40,000/- u/s 69A of the Income Tax Act, 1961 in a routine manner in respect of unabated assessment for Assessment Year 2014-15 without referring to incriminating documents which is illegal and unjustified. 9. Being aggrieved with the assessment orders, the assessee filed appeal before the Ld. Commissioner of Income tax (Appeals)-5, Ludhian....