TaxTMI 
TaxTMI 
2026 (4) TMI 467
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....ept the difference in figures of additions, therefore, we are dealing with the facts of assessment year 2017-18 as a lead case by reproducing only its grounds as under:- 1. The Order of the Ld. CIT(A) is not correct in law and facts. 2. Whether on the facts and circumstances of the case Ld. CIT(A) is justified in deleting the addition of Rs. 58,73,04,576/- on account of non-genuine losses adjusted from income by the genuine losses adjusted from income by the assessee where the assessee from income by the assessee where the assessee entered into a sham transaction with M/s JM Mutual Fund? 3. Whether on the facts and circumstances of the case Ld. CIT(A) is justified in deleting the addition of Rs. 58,73,04,576/- on ....
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....rnished its original return of income u/s. 139(1) of the Act on 31.10.2017 at an income of Rs. 24,84,99,070/- On 21.9.2018 assessee filed its revised return of the income at Rs. 25,25,10,450/-. Later, the case was selected for scrutiny through CASS and assessment was completed on 17.12.2019 at returned income. Since search was initiated in this case, notice u/s. 153A of the Act was issued on 31.01.2022 and duly served on the assessee. In response to the notice u/s. 153A of the Act, the assessee vide letter dated 4.3.2022 stated that it is unable to file the return of the income electronically and requested to consider its 139(1) return of the income as return u/s. 153A. With respect to the ROI dated 4.3.2022 (Intimation vide letter dated 4.....
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....en as notice of motion to raise the following legal ground, in support of the order of the Ld. CIT(A): Additional Ground No. 1 That the Ld. CIT(A) has erred in law and on facts in overlooking the basic fact that no incriminating material was found during the course of search and the assessment as contemplated under section 153A is not a de novo assessment and as such, the additions so made by AO are beyond the scope of assessment under section 153A of the Act and are liable to be deleted in totality. 3. It is otherwise well settled proposition of law that the respondent is entitled to raise a legal ground at any stage of the proceedings, even though he may not have filed an appeal against such order. The judicial pronounce....
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.... under Rule 27 of the ITAT to support the order of the CIT(A). Reliance has been placed by the DR is distinguishable because in this case the Ld. AR raised the issue before the CIT(A). The application filed by the Assessee under Rule 27 of the IT Rules is admitted. 6. We have heard both the parties and perused the records. Ld. DR relied upon the order of the AO. However, Ld. AR for the assessee reiterated that the addition in this case has been made without any incriminating material found during the course of search. He further submitted that assessment u/s. 153A in the case of completed assessment cannot be done dehors incriminating material found during the course of search. He further stated that in the instant case the addition is n....
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.... being the clinching factual position, there would be again no issue between the parties that the learned Assessing Officer herein had disallowed the assessee's alleged losses u/s 94(vii) of the Act hereby holding the corresponding transactions with M/s JM Mutual Funds, as sham ones only followed by his yet another estimated actual profit; both involving varying sums, in these three assessment years. We wish to emphasize here that neither the impugned additions is based on the corresponding specific seized material as it forms a mandatory condition in light of their lordships decision. We thus find merit in the assessee's legal arguments to quash all these assessments herein in very terms. Ordered accordingly. These three Revenue's appeal f....