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TMI Blog2018 (2) TMI 1779X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of unexplained share application money by the AO, without discussing the merit of the case. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in hiding that the assessment stood completed on the date of search as the CBDT as the assessment stands completed when the assessment order is passed as explained by the Circular No. 3/2008 dated 12.03.2008 read with Circular No. 16/2014 dated 17.11.2014 of CBDT. 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) failed to appreciate that the Hon'ble Allahabad High Court has held in the case of Commissioner of Income Tax, Central Kanpur V. Raj Kumar Arora [2014] 52 taxmann. Com 172 (Allahabad), after considering the judgement given b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r considering the submissions of the assessee and relying on some case laws, deleted the addition. Aggrieved, the Revenue is in appeal before the Tribunal. 3. The ld. DR submitted that the ld. CIT(A)has wrongly deleted the additions made by the Assessing Officer. She submitted a small synopsis containing 17 pages, which is placed on record. She submitted a circular No. 16/2014 dated 17.11.2014. It was also submitted that in the impugned assessment year, the case of the assessee was processed u/s. 143(1)(a). Therefore, there was no assessment passed for the year under consideration. As per section 153A, the AO has rightly made assessment u/s. 153A read with section 143(3) of the Act. She submitted that the assessee shall be deemed to be com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions made by AO and the appellant. As reported, no notice under section 143(2) is available on record, though it has been mentioned in the assessment order and order sheet. It is a settled law now that there is no need to issue a separate notice under section 143(2) for proceedings related to 153A of the Act. Accordingly, looking to the provisions of section 153A of the Act and also respectfully following the judgment in the case of Ashok Chadda vs. Income Tax Officer, as cited above, the proceedings under section 153A read with section 143(3) is held to be valid as it is not necessary to issue and serve notice under section 143(2) of the Act. Thus, the assessment proceedings are found to be in order and this ground of appeal is not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the above submissions of the AO it is clear that the assessment pioceedings were complete on the date of search and hence the proceedings are unabated. 10.5 With respect to the fact that whether this additions of Rs. 2.05 crores are emanating from any incriminating material found/seized during search, nowhere it has been mentioned in the assessment order that any such seized material or otherwise has been found during search to conclude that this amount Ts unexplained cash credit in the hands of the company. Further, nothing has been mentioned in the assessment order to show that during search any unaccounted income, cash, jewellery or any other asset has been found/seized. No trace of any generation of unaccounted income has also been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was referred by the AO, based on which the addition has been made. 10.7 In its rejoinder dated 05.11.2015 it was stated by the appellant that all the relevant information and documents were furnished to the AO as well as to the investigation wing and the director of Raffel was also produced. Information under section 133(6) of the Act was also furnished by Raffel and Purushootam Vinimay P. Ltd. and no discrepancy has been found even though the source of SGurts 1 as been explained. Therefore, nothing is available with the AO in the form of seized documents or any other evidence which formed the basis for such additions. 10.8 It has also been stated by the appellant that in paragraph 5.4 and 6.3 of the assessment order AO has mentioned a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that in an unabated assessment under section 153A of the Act, the addition can be made only on the basis of incriminating material found and seized during the course of search, whereas the addition made in the present case is without having any incriminating material/seized document is not sustainable. 10.13 Therefore, the addition cannot be sustained in view of the legal provisions as defined by the Hon'ble Jurisdictions! High Court in the above -eferreci case law. 10.14 Since, the issue has been decided on the legal grounds regarding jurisdiction of AO to make such additions under section 153A of the Act and the addition has not been sustained, the ground relating to the merit of this case has not been considered. 6. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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