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TMI Blog2013 (4) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) TMI 770 - GUJARAT HIGH COURT). However, as find that in the case of Gopal Lal Bhadruka V/s. DCIT,[2012 (6) TMI 657 - ANDHRA PRADESH HIGH COURT] it is held that while completing assessment u/s 153C AO will not be confined to the seized materials only but can consider all the material as may be available before him. In this view of the matter, the conclusion arrived at by the CIT(A) is not to be accepted. However, it appears from the order of the CIT(A) that the assessee has raised a specific contention that Rs.5,00,000/- which was added on account of unexplained share application money are only opening balances as they continued from previous year. Similarly, the CIT(A) has also not gone into the merits of the addition made on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tition was also not filed by the assessee. In these circumstances, we proceed to dispose of the appeals on merit after hearing the learned Departmental Representative. 3. Briefly the facts are, the assessee is a Pvt. limited company engaged in the business of real estates. For the assessment year under dispute a return of income was filed by the assessee on 31/10/2002 declaring total income of Rs. 33,550/-. A search and seizure operation u/s 132 of the Act was conducted in case of Shri V. Dasaratha Naidu on 27/09/2007. Consequent upon the said search operation, a notice u/s 153C of the Act was issued to the assessee. In response to the said notice, the assessee filed return of income 07/12/2009 declaring the same income as was disclosed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t heads: (Amount in Rs.) 1. Salaries and travelling 8,607/- 2. Land development expenses 2,97,550/- 3. Printing and stationery 15,000/- 4. Brokerage 44,000/- The assessee being aggrieved of the assessment order, preferred appeal before the CIT(A). 4. In course of hearing of appeal before the CIT(A), it was contended by the assessee that the share application money was brought forward from the previous year, therefore, what is appearing in the balance sheet is only opening balance. It was further submitted that all these facts were disclosed in the original return filed by the assessee, which was accepted by the depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad with section 153C of the Act as he did not possess any seized material or evidences to make the additions of share applications money, creditors and other expenses. He,therefore, directed the Assessing Officer to delete the additions made. 6. The learned Departmental Representative relying upon the decision of the Income-tax Appellate Tribunal, Hyderabad Bench in case of ACIT, Central Circle - 3, Hyd. V/s. M/s Ch Marthanda Rao Co. ITA No. 780 to 784/Hyd/2010 dated 18 t h August, 2010, submitted that the CIT(A) was not justified in deleting the addition by holding that the Assessing Officer has to complete assessments u/s 153C only on the basis of search material. The learned Departmental Representative urged for restoring the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me u/s 153A on the basis of entire material available on record and it is not required that the Assessing Officer should confine himself only to the material found during the course of search operation. Following the ratio laid down by the Hon'ble jurisdictional High Court in case of Gopal Lal Bhadruka (supra) and the coordinate bench in case of Ch. Marthanda Rao Co. (supra), we hold that while completing assessment u/s 153C of the Act, the Assessing Officer will not be confined to the seized materials only but can consider all the material as may be available before him. In this view of the matter, we do not agree with the conclusion arrived at by the CIT(A). Accordingly, we set aside the order of CIT(A). However, it appears from the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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