TaxTMI 
TaxTMI 
2025 (6) TMI 1389
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..... 2. First, we take revenue's appeal in ITA No. 1683/Del/2021 for Assessment Year 2013-14 and Cross objection No. 153/Del/2022 in the case of Shri Harjeet Singh. 3. This appeal is filed by the Revenue against the order of learned Commissioner of Income Tax (Appeals)-30, New Delhi [ld. CIT(A), in short], dt. 31.08.2021 in appeal No. 10339/2019-20 for Assessment Year 2013-14 passed u/s 250 of the Income Tax Act, 1961 (the Act, in short). 4. Brief facts of the case are that assessee is an individual and filed his return of income on 05.08.2013 declaring total income of Rs. 15,26,340/-. A search and seizure operation was carried out on 14.09.2017 at various places belonging to SRC group of companies, its directors and other related entities and assessee is also one of them whose business/residential premises was also covered. The assessee is engaged in the business of Real Estate and was doing various projects at Dudhola, Sector 49, Part-1, Project, Mirapur-Bhagola Project etc. The AO observed that assessee alongwith Sh. Rajesh Chaudhary, Joginder Singh and Sh. Manish Goyal had incurred total expenses of Rs. 99,69,66,479/- on these projects out of which Rs. 43,55,23,594/- were recor....
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....seized material to explain the same, but in contradiction, the same has been explained in reference to his group entities and the unexplained expenditure has not been included in his income offered before ITSC and the application is still pending for adjudication before the Hon'ble Income Tax Settlement Commission. 4. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 16,00,000/- made by the AO on account of unexplained cash deposited by the assessee in his bank account by the assessee. 5. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition relying on the decision of Kabul Chawla, without appreciating the fact that the Hon'ble Supreme Court of India has admitted SLP vide Diary No. 37848/2015 in the case of APAR Industries Ltd. decided by Hon'ble Bombay High Court in ITA No. 1669 of 2013 dated 08.05.2015 which is a led cases tagged with more than 115 issues on the issue of restriction of additions only to incriminating materials found during search. Therefore, withdrawal of SLP in the case of Kabul Chawla on accou....
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....n Mr Subhash Chaudhary has stated that the said pages forms part of the books of account of the SRC Buildtech Private Limited, SRC Realtech Private Limited, Pyramid Buildtech Private Limited and SRC International Private Limited and also filed ledger accounts for the same. AO in the said remand report had further stated that the submission filed with this office had already been verified at the verification stage of the ITSC and that after verification no negative inference was drawn in respect of the said page. On perusal of the said remand report, the ledger accounts and other documents, it is apparent that the impugned transactions as appearing in the Page-15, 17, 18, 29, 32-35 of Annexure A-6 are recorded in the regular books of M/s SRC Buildtech Private Limited, SRC Realtech Private Limited, Pyramid Buildtech Private Limited and SRC International Private Limited. It is thus evident that firstly the impugned pages i.e. Page-15, 17, 18, 29, 32-35 are not related to Mr. Rajesh Chaudhary and secondly the transactions mentioned in the seized material were duly recorded and explained in the hands of regular books of M/s SRC Buildtech Private Limited, SRC Realtech Private Limited, ....
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....2/ and 1315/ is confirmed and the ground of appeal raised by the Revenue are dismissed." 10. The Ld. AR thus prayed that since the additions made on account of alleged undisclosed expenditure of Rs. 14,03,60,721/- were already recorded in the books of accounts of the aforesaid four companies which fact has already been examined and verified by the Assessing Officer during remand proceedings and no adverse interference was called for with respect to the same, therefore, the Ld. CIT(A) has rightly deleted the additions and he prayed for the confirmation of the order of Ld. CIT(A). 11. After considering the arguments of both the parties and perusing the material available on record. In the instant case, we find that the additions were made by the AO based on the basis of loose papers found and seized during the course of search which contained the details of expenditure incurred at various worksite by the assessee along with three other persons totaling to Rs. 99,69,66,479/- out of which Rs. 43,55,23,594/- were recorded in the books of account and the balance Rs. 55,14,42,885/- were incurred out of undisclosed sources by the assessee alongwith three other persons namely Shri Rajesh ....
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....ing material were found as a result of search with respect non abated years, no addition could be made. The relevant observations of the hon'ble court are as under: "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 material unearthed during the search and the other material available with the AO including the income declared in the returns; and iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found duri....