2023 (7) TMI 988 - AT - Income Tax

Assessment u/s 153A - incriminating material found at the time of search or not? - HELD THAT - Disallowances made by the AO are devoid of any incriminating material found at the time of search, CIT(A) respectfully following the binding decision in the case of Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT quashed the assessment order. As in the case of Abhisar Buildwell 2023 (4) TMI 1056 - SUPREME COURT has upheld the decision of the Hon ble Delhi High Court, therefore, there remain no grievance for the revenue now. We do not find any error or infirmity in the findings of the CIT(A) qua ground No.2, therefore, the captioned appeals by the revenue are dismissed.

Summary

Issues Involved:
The issues involved in this case are related to the assessment orders for multiple assessment years (A.Y. 2008-09, 2009-10, 2010-11, and 2011-12) challenged by the revenue in four separate appeals before the Appellate Tribunal ITAT Delhi.

ITA No.5042/Del/2017 A.Y. 2008-09:

1. The CIT(A) allowed the appeal of the assessee without truly appreciating the factual matrix of the case.
2. The reliance on the case of CIT Vs Kabul Chawla was questioned, specifically regarding the interference with completed assessment u/s 153A of the Act.
3. Deletion of addition made by AO on account of bogus purchases from certain traders was contested.
4. Acceptance of additional evidence in appellate proceedings without proper verification from assessment records was challenged.
5. Disallowance of deduction u/s 80IB(4) of the Act was deleted by the CIT(A).
6. Disallowance of manufacturing expenses was deleted by the CIT(A).
7. The plea for rejection of books of account u/s. 145(3) of the IT Act, 1961 was allowed by the CIT(A).
8. The assessment order was annulled based on the lack of incriminating material found at the time of search, following the decision in the case of Kabul Chawla.

The Hon'ble Apex Court upheld the decision of the Hon'ble Delhi High Court in the case of Abhisar Buildwell, leading to the dismissal of the revenue's appeals due to no error found in the CIT(A)'s findings regarding ground No.2.

Conclusion:
The Appellate Tribunal dismissed the revenue's appeals as the assessment orders were annulled due to the lack of incriminating material found at the time of search. The decisions of the CIT(A) regarding various grounds were upheld, and no errors were found in the findings. The appeals were disposed of based on the precedents set by the Hon'ble Delhi High Court and the Hon'ble Apex Court.