TaxTMI 
TaxTMI 
2024 (6) TMI 98
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.... ITA Nos. 723, 724 & 725/DEL/2019), ITA Nos. 710, & 711/DEL/2019 And C.O. nos. 58 & 59/Del/2019 (In ITA Nos. 710 & 711/DEL/2019) Shri Saktijit Dey, Vice President And Shri Naveen Chandra, Accountant Member For the Assessee : Shri Anand Chaudhuri, Adv.; Shri Deepanshu Mehta, Adv.; And Shri Kumailabbas, Adv. For the Department : Shri T. James Singson, CIT(DR) ORDER PER BENCH: This bunch of 22 appeals and cross-objections, respectively, by the Revenue and the assessees, arise out of separate orders of learned Commissioner of Income Tax (Appeals)-29, New Delhi, pertaining to assessment years 2008-09, 2009-10 & 2010-11. Since, the issues in all these appeals are common and culminate out of common search and seizure operation, c....
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....s erred in law in arbitrarily determining the rate of alleged commission income at 2.5 percent and the same being contrary to settled range between 0.15 and 0.5 percent as per case law precedent. 5. The Ld.CIT(A) has rightly deleted the other additions made against the Assessee/Respondent vide impugned assessment order." 4. In ground no. 1 of revised grounds, the assessee has raised a legal issue, challenging the validity of the additions made in the assessment order passed u/s 153A/144 of the Act. 5. At the outset learned Departmental Representative submitted that this ground was not raised by the assessee originally, hence at this stage such ground should not be admitted. 6. Having considered the submissions of the parti....
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....eport, bank statement and various other documents. After examining the documents filed, the Assessing Officer, as alleged, found various discrepancies in them. Hence, he made reference for special audit u/s 142(2A) of the Act. Based on the Special Audit report the Assessing Officer ultimately concluded that the books of account are not reliable, accordingly, rejected them. Further, alleging non-compliance on the part of the assessee, he proceeded to complete the assessment u/s 153A read with section 144 of the Act. While doing so he made a number of additions on account of bogus purchases, unexplained cash credit, disallowance of expenses etc. Ultimately he concluded the assessments in like manner for all the assessees under appeal. 9. A....
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....aving been made in absence of any incriminating material, are not sustainable. In support of such contention, learned counsel relied upon the judgment of Hon'ble Supreme Court in the case of PCIT vs. Abhisar Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC). 11. The learned Departmental Representative, though agreed that neither the assessment order nor the panchnama refer to any seized/incriminating material, however, he submitted, there could be some incriminating material found as a result of search on NKG group leading to the additions made by the Assessing Officer. 12. We have considered rival submissions and perused the material available on record. We have also applied our mind to the judicial precedents, cited before us. As f....
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....way of sales. 14. Thus, it is a proven fact on record that no addition in the assessment order was based on any incriminating material found as a result of search. In the above said factual background, the issue that arises for our consideration is, whether in case of unabated assessment any addition can be made in assessment order passed u/s 153A of the Act without any incriminating material found as a result of search. In our view, the issue is no more res-integra by virtue of law laid down by the Hon'ble Apex Court in the case of PCIT vs. Abhisar Buildwell (P) Ltd. (supra). While affirming the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla [2015] 61 taxmann.com 412, the Hon'ble Supreme Court has laid down....