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TMI Blog2015 (4) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... Ved Jain & Rano Jain, CA For the Respondent : Shri D K Mishra, CIT-DR ORDER :- PER : Bench The grievance of the assessee against the first appellate order is that the Ld. CIT (A) has erred in rejecting the contention of the assessee that the assessment order framed u/s 153A is bad and thus is liable to be quashed as the same has been framed consequent to a search which itself was unlawful and invalid in the eyes of law (Ground Nos. 1 to 5). In ground no.6 & 7, the assessee has questioned first appellate order whereby Ld. CIT (A) has sustained the disallowance of ₹ 7,83,005/- u/s 14A of the Act and disallowance of expenditure to the extent to 2.08% of the total expenditure. 2. The Revenue on the other hand has impugned the first a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of directors. 5. Before the Ld. CIT (A), the assessee questioned the validity of assessment order framed u/s 153A of the Act but could not succeed. The Ld. CIT (A) has however given some other relief out of disallowances/ additions resulting in cross appeals before the Tribunal. 6. In support of the ground nos. 1 to 5 of the appeals of assessee, the Ld. AR while reiterating the submissions made before the Ld. CIT (A) contended that no incriminating material was found during the course of search and the original assessment order u/s 143(3) was framed after thorough scrutiny including the issue of disallowance u/s 14A of the Act before the date of search. The Ld. AR referred to the original proceedings completed u/s 143(3) of the Act made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier order which is not permissible in the law, submitted the Ld. AR. He argued that it is now a settled law that no addition can be made in a proceeding u/s 153A in the absence of any incriminating material being found during the course of the search. In this regard he placed reliance on the following case laws: i) Kusum Gupta vs. DCIT reported in ITA No.4873/Del/2009 dated 28.03.2013. ii) ACIT vs. Asha Katarial reported in ITA No. 3105/De/2011 dated 20th May, 2013. iii) CIT vs. Lachman Dass Bhatia reported in 77 DTR 17 (Del) Dt. 07.08.2012. iv) Gurinder Singh Bawa vs. DCIT reported in ITA No.4214/Del/2011 dated 28.06.2013. v) MGF Automobiles Ltd. vs. ACIT reported in ITA No.4214/Del/2011 dated 28.06.2013. vi) ACIT vs. Pratibha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... block assessment which was the undisclosed income and the regular assessment proceedings were reserved, resulting in multiple assessments. U/s 153A, however the Assessing Officer has the power to assess or reassess the total income of the six assessment years in question in separate assessment orders. He placed reliance on the following case laws: i) Gopal Lal Badruka vs. DCIT (2012) 346 ITR 106 (AP) ii) Anil Bhatia: 352 ITR 493(Del) & Ors. 9. Having gone through the orders of the authorities below, material available on record as well as the decisions relied upon, we find that in the assessment order there is no any reference of incriminating material found during the course of search on the issue of disallowance of expenditure u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us when in the present case the original assessment was already framed u/s 143(3) of the Act before the date of search and no incriminating material was found connected to the assessee during the course of search, the Assessing Officer was not justified in initiating proceedings u/s 153A of the Act and framing assessment there under in furtherance thereof. 11. The decision relied upon by the Ld. CIT, Departmental Representative having distinguishable facts are not helpful to the Revenue. In the case of Gopal Lal Bhadruka vs. DCIT (Supra) during the course search and seizure operations it came to light that Mr. Gopal had obtained a general power of attorney to develop the Sikand property dealing to two persons and it was revealed that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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