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TMI Blog2017 (5) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Allowed, subject to all just exceptions. ITA Nos. 502/2016, 503/2016, 505/2016 & 506/2016 2. These are four appeals by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') directed against a common order dated 27th January, 2016 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 6947/Del/2014 (Lairy Distributors Pvt. Ltd. v. Deputy CIT); ITA No. 7060/Del/2014 (Sunny Infra Projects Ltd. v. CIT(A)-XXVI); ITA No. 6948/Del/2014 (Balram Vinimay Pvt. Ltd. v. Deputy CIT) and ITA No. 7061/Del/2014 (Sunny Infra Projects Ltd. v. The CIT(A)XXVI). The Assessment Years ('AYs') involved are 2006-07 as regards Lairy Distributors Pvt. Ltd.; 2007-08 & 2010-11 as regards Sunny Projects Ltd. and 2007-08 as regards Balram Vini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Blue Chip India Limited; Amluckie Investment Co. Ltd. and Bahubali Properties Limited. He also admitted that previously his staff members and his friends were Directors of Dhansafal Vyapar Pvt. Ltd., Whiteline Barter Ltd. and Arihant Ltd. and in that way he was related to Minda Group of Companies. 7. As far as the Assessees in question were concerned, only one of the above named companies, Bahubali Properties Limited, was a shareholder in the Assessee companies. In his assessment order dated 30th March, 2014, in the case of Sunny Infra Projects Limited for the AY 2010-11, the Assessing Officer ('AO') noted that to facilitate independent verification of the receipt of the share capital and share premium, notices under Section 133(6) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said retraction and proceeded to make the additions to the taxable income of the Assessees. 9. Among the various grounds raised by the Assessee before the CIT (A), one pertained to whether in fact the proceedings initiated under Section 153C of the Act were valid. The CIT (A) by the order dated 9th December, 2014 rejected the said contention of the Assessees. As regards merits of the additions, the CIT (A) concurred with the AO and sustained the additions. Consequently, the appeals were dismissed. The appeals of all the Assessees were consolidated before the ITAT and the impugned common order was passed. 10. As already mentioned, this Court considers it necessary only to address the issue as to whether what was recovered during the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssments were finalised under Section 143(3) of the Act. The Court enquired from Mr. Shivpuri whether, in fact, there was any new or fresh material which could form the basis for the AO for re-opening the assessments. Mr. Shivpuri submitted that the trial balances were not available earlier. However, he could not deny that it is these very trial balances that led to the preparation of the balance sheet, which were already available with the AO and that there was no new information contained in the trial balance which justified the additions. 13. Consequently, the Court is of the view that the above documents could not constitute incriminating material which could justify the making of the additions in exercise of the powers under Section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not necessarily require the AO to reopen the concluded assessments and reassess the income of the Assessee."
14. As far as the present cases are concerned, the documents and material seized are only the balance sheet, audit reports etc., which did not reflect any income that was not already disclosed when the assessments were finalised initially under Section 143(3) of the Act. This by itself is sufficient to delete the additions sustained by the CIT (A). Consequently, the ITAT was not in error in ordering such deletion.
15. For the aforementioned reasons, the question framed is answered in the negative i.e., against the Revenue and in favour of the Assessee. The appeals are dismissed but in the circumstances, no orders as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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