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TMI Blog2018 (1) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... t that additions/disallowances have been made without reference to any specific incriminating material/document found as a result of search and seizure action under s.132 of the Act and is based on re-appreciation of facts unconnected to search. Income-tax return for the relevant assessment years were filed prior to the search in the normal course suo motu incorporating the items of income/expenditure which are subject matter of considerations in the assessment framed u/s 153A. The returns for various assessment orders in question so filed in ordinary course were accepted under s.143(1) of the Act and/or assessed under s.143(3) and as such no assessment was eventually pending on the date of initiation of search which may get abated in conse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In all the five appeals, the assessee has raised a common ground whereby the assessee has challenged the jurisdiction usurped by the Assessing Officer (AO) under s.153A of the Act towards additions/disallowances made. In view of the preliminary objection of the assessee which seeks to put question mark over the legitimacy of the additions/disallowances made under s.153A of the Act, we deem it expedient to dispose of the aforesaid preliminary ground as it strikes to the root of the matter. 3. When the matter was called for hearing, the ld.AR for the assessee, at the outset, submitted that the additions/disallowances made in all the five appeals has no rational connection or live link with material found in the course of search action car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time of search relating to various assessment years in question survives and do not get abated. The Ld.AR submitted that in these facts, it is not permissible for the AO to invoke authority vested under s.153A of the Act to indulge in making routine examination of various items of income and expenditure filed and declared in the respective returns which has no correlation to incriminating material found in the course of search if any. For this proposition, the Ld.AR relied upon the decision(s) of the Hon'ble Gujarat High Court in the case of Pr. CIT v. Saumya Construction (P.) Ltd. [2016] 387 ITR 529/[2017] 81 Taxmann.com 292, Pr. CIT v. Desai Construction (P.) Ltd.[2016] 387 ITR 552/[2017] 81 taxmann.com 271 (Guj.), CIT v. Deep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee thus hinges around one pertaining legal point as to whether, while making assessment under s.153A, the Revenue is entitled to interfere with the assessment concluded either under s.143(1) or under s.143(3) and not pending at the time of search in the absence of any incriminating material unearthed as a result of search. 6.1. On a bare perusal of assessment years in appeals and the composite order of the CIT(A) discussing issues connected with various additions/disallowances, we find total absence of reference to any incriminating material which may have any bearing to impugned additions/disallowances. As a corollary, it is manifest that additions/disallowances have been made without reference to any specific incriminating material/d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view was earlier taken by the Hon'ble Delhi High Court in the case of Kabul Chawla (supra).
6.4. In view of long line of judicial precedents governing the field, we hold that additions/disallowances made without any nexus to incriminating material found, if any, as a result of search operations are not sustainable in the eyes of law in section 153A of the proceedings. Hence, the additions/disallowances made by the AO in all the captioned appeals require to be quashed. Thus, we find merit in the legal ground raised by the assessee. In this view of the matter, we do not intend to adjudicate various additions/disallowances on merits.
7. In the result, all the captioned appeals of the assessee are allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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