2020 (2) TMI 1718

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....is appeal. 2. Brief facts of the case are that pursuant to search and seizure operation that took place in the case of SRS group of cases on 09.05.2012, notice u/s. 153C read with section 153A of the Income Tax Act, 1961 ("the Act") was issued to the assessee on 18.09.2014 and the assessee filed return of income on 17.10.2014 declaring income of Rs.2,95,770/-. After issuing notice u/s. 143(2) and 142(1) and considering the case of the assessee, ld. Assessing Officer determined income of Rs.25,64,432/- u/s. 153A(1)(b) read with section 143(3) of the Act by making addition of Rs.9032/- by invoking the provisions of section 14A read with Rule 8D of the Rules and a sum of Rs.22,59,630/- by disallowing the freight charges. 3. Assessee pref....

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....t dispute the purchase but doubted the freight charge which is not tenable one. 5. The ld. DR heavily relied upon the orders of the authorities below and submitted that it is only due to the search and reopening of assessment, the authorities could detect the reasons for disallowance of the amounts u/s. 14A read with Rule 8D and disallowance u/s. 37(1) of the Act and therefore, it is not open for the assessee to contend that in view of the decision of jurisdictional High Court in the case of Kabul Chawla (supra), the addition cannot be sustained. 6. We have gone through the record in the light of submissions made on either side. There is no dispute as to the dates submitted on behalf of the assessee. As could be seen from page 152 of ....