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TMI Blog2017 (12) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ross Objections against the respective Orders of the Ld. CIT(A)-I, New Delhi relevant to assessment years 2001-02, 2004-05, 2005-06 2006-07 respectively. Since the issues involved in these appeals and cross objections are common, hence, the appeals and cross objections were heard together and are being disposed of by this common order for the sake of brevity. 2. The grounds raised by the Revenue in ITA No. 3178/Del/2011 (2001-2002) read as under:- 1. The order of the Ld. CIT(A) is not correct in law and facts. 2. Whether in the facts and circumstances of the case, the Ld. CIT(A) erred in deleting the addition of ₹ 44,50,000/- made u/s. 68 of the Income Tax Act, 1961 by the AO in respect of share application money introduced during the year. 3. The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of hearing of appeal. 3. In other appeals of the Revenue, the grounds are identical, except the difference in the figures, hence, the grounds of other appeals are not reproduced for the sake of brevity. 4. The grounds raised by the Assessee in Cross Objection 276/Del/2011 in ITA No. 3178/Del/2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. Notice u/s. 143(2) dated 15.9.2009 was issued to the assesse fixing the case for 25.9.2009. In response to the statutory notices u/s. 142(1) 143(2) of the Act and questionnaire, the A.R. of the assessee attended the proceedings from time to time and filed the details. Thereafter the case was assessed at an income of ₹ 4,29,76,490/- after making certain disallowances vide his order dated 24.12.2009 passed u/s. 153C/143(3) of the I.T. Act, 1961. 5. Against the aforesaid assessment order dated 24.12.2009, assessee preferred an appeal before the Ld. CIT(A), who vide impugned order dated 25.3.2011 has partly allowed the appeal of the asseseee. 6. Aggrieved with the order of the Ld. CIT(A), Revenue is in appeal and assessee is in Cross Objection before the Tribunal. 7. At the threshold, Ld. Counsel of the assessee has stated that the Cross Objection filed by the assessee has involved the legal issue and therefore, the same may be first decided. Hence, we first deal with the Assessee s Cross Objection and adjudicate upon the legal issue. 8. Ld. Counsel of the assessee further draw our attention towards the impugned order as well as assessment order and state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant records available with us, especially the orders of the revenue authorities and the cases referred by the Ld. Counsel of the Assessee as well as by the Ld. CIT(DR). We find that the additions made by the AO are beyond the scope of section 153C of the Income Tax Act, 1961, because no incriminating material or evidence had been found during the course of search so as to doubt the transactions. It was noted that in the entire assessment order, the AO has not referred to any seized material or other material for the year under consideration having being found during the course of search in the case of assessee, leave alone the question of any incriminating material for the year under appeal. We also find that the case laws cited by the Ld. CIT(DR) are not relevant to the present case. Therefore, in our considered opinion, the action of the AO is based upon conjectures and surmises and hence, the additions made is not sustainable in the eyes of law, because this issue in dispute is now no more res-integra, in view of the decision dated 29.08.2017 of the Hon ble Supreme Court of India in the case of Commissioner of Income Tax-III, Pune vs. Sinhgad Technical Educational Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an ITA Nos. 707, 709 and 713 of 2014 of assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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