TaxTMI 
TaxTMI 
2025 (4) TMI 2145
X X X X Extracts X X X X
X X X X Extracts X X X X
....evenue and pertain to same assessee, they were heard together and are disposed of by this common order for the sake of convenience and brevity. As none appeared on behalf of the assessee, we decided to proceed further with the appeal with the assistance of the ld DR. ITA No. 1482/DEL/2022 [A.Y 2016-17] 3. The grounds raised by the Revenue read as under; "1. 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. 475,00,000/- made u/s 68 of the Act, without appreciating the facts that the assessee failed to establish the identity, genuineness and creditworthiness of the unsecured loan. 2. That on the facts and in the circumstances of the case....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt years preceding to the assessment year in which search was conducted. 6. In response to the notice u/s 153A, the assessee filed return declaring loss of Rs. 2,33,15,522/-on 27.03.2021. Notice u/s 142(1) along with a questionnaire dated 07.07.2021 was issued and duly served upon the assessee. Further, notice u/s 143(2) issued on 16.08.2021 and was duly complied with by the assessee. In response to the notices issued, the AR of the assessee, submitted the requisite details and clarifications. 7. Not satisfied with the reply of the assessee, the Assessing Officer was of the view that the assessee failed to prove the identity, credit worthiness of the lender who had provided unsecured loans to the assessee company and genuineness of tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....during the year. In the assessment order it has been mentioned that, on the basis of the Audit Report filed by the assessee during the assessment proceedings, the AO found that the appellant had deposited late the PF and ESI contribution amounting to Rs 1,56,350/- received from the employees in the Government Account, during the year. Thus, the information regarding the late deposit of PF and ESI by the appellant was not found in the form of incriminating evidence during the course of search conducted on the appellant. 8.5 The position of law that addition can be made only on the basis of incriminating material etc. found during search, has been laid down by the Hon'ble jurisdictional High Court in the case of CIT vs Kabul Chaw....
X X X X Extracts X X X X
X X X X Extracts X X X X
....milar view that once the assessment has attained finality for a particular year i.e. it is not pending then the same cannot be subject to tax in proceedings u/s 153A of the I.T. Act. The SLP of the Revenue challenging the decision of the Hon'ble Delhi High Court in the case was dismissed by the Honble Supreme Court. There are plethora of judicial pronouncements after the above verdicts that unabated assessments can be interfered with u/s 153A only on the basis of incriminating material/documents/evidence discovered during the course of search. 8.6 Accordingly, I am of the view that the addition on account six loans procured, bogus interest expenses paid and of late deposit of PF and ESI, by AO is not justifiable. Respectfully f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Buildwell [supra] has set at rest the entire quarrel revolving around the assessments devoid of incriminating material. The relevant findings read as under: "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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me, which was found during the search operation but also with regard to material that was available at the time of original assessment does not require any interference. Under the circumstances, the aforesaid appeals preferred by the assessee - M/s Kesarwani Zarda Bhandar, Sahson, Allahabad deserve to be dismissed and are accordingly dismissed. In the facts and circumstances of the case, no costs." 12.1 We are of the considered view that the impugned year is a completed/unabated year and the AO has made additions on the basis of other materials on record. There is no incriminating materials found in the course of search in respect of additions made by the AO. Respectfully following therefore, the judgement of the Hon'ble Supreme Cour....