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TMI Blog2017 (11) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to make addition of share application money therefore, the issue is covered in favour of the assessee by the judgment of the jurisdictional High Court in the case of Kabul Chawla (2015 (9) TMI 80 - DELHI HIGH COURT) and Meeta Gutgutia (2017 (5) TMI 1224 - DELHI HIGH COURT ). Therefore, the invocation of Section 153A by the A.O. for assessment year under appeal was without any legal basis as there was no incriminating material found in respect of assessment year under appeal. - Decided in favour of assessee. - ITA.No.3407/Del./2017 - - - Dated:- 21-11-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Assessee : Shri Gautam Jain and Shri Lalit Mohan Singh, Advocates For The Revenue : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rore as unexplained share application money and made the addition accordingly by completing the assessment under section 153A of the I.T. Act vide order dated 11th March, 2015. 3. The assessee challenged the above addition before Ld. CIT(A). The claim of the assessee is reproduced in the appellate order. The assessee submitted before Ld. CIT(A) that addition is wholly unjustified because it is not based on any incriminating material detected as a result of search. It was submitted that search under section 132(1) was conducted on 23.11.2012 and on the date of search, no proceeding for the instant assessment year were pending as prior to date of search no notice under section 143(2) of the Act was issued and served on the assessee in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 153A of the I.T. Act. The Ld. D.R. submitted that the tax statute should be interpreted strictly. The Ld. D.R. submitted that the other High Courts have held that there is no need for recovery of any incriminating material during the course of search and relied upon the decision of the Allahabad High Court in the case of Raj Kumar Arora dated 11th July, 2014 in ITA.No.56 of 2011, decision of Kerala High Court in the case of E.N. Gopalkular vs. CIT (2016) 75 taxmann.com 215, decision of Allahabad High Court in the case of CIT vs. Kesarwani Zarda Bhandar Sahson ITA.No.270 of 2014, decision of Kerala High Court in the case of CIT vs. St. Francis Clay D cor Tiles 385 ITR 624 and decision of Hon ble Delhi High Court in the case of Smt. Dayawa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not only by this Court in its subsequent decisions but also by several other High Courts. 71. For all of the aforementioned reasons, the Court is of the view that the ITAT was justified in holding that the invocation of Section 153A by the Revenue for the AYs 2000-01 to 2003-04 was without any legal basis as there was no incriminating material qua each of those AYs. Conclusion 72. To conclude : ( i)Question (i) is answered in the negative i.e., in favour of the Assessee and against the Revenue. It is held that in the facts and circumstances, the Revenue was not justified in invoking Section 153 A of the Act against the Assessee in relation to AYs 2000-01 to AYs 2003-04. 6.2. It is not in dispute that sear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, such date would expire on 30th September, 2012. Therefore, on the date of search on 23.11.2012 no assessment was pending against the assessee and assessment had already completed under the Act. Since no incriminating material was found or recovered during the course of search so as to make addition of share application money therefore, the issue is covered in favour of the assessee by the judgment of the jurisdictional High Court in the case of Kabul Chawla (supra) and Meeta Gutgutia (supra). Therefore, the invocation of Section 153A by the A.O. for assessment year under appeal was without any legal basis as there was no incriminating material found in respect of assessment year under appeal. 6.3. The Ld. D.R. however, relied upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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