9911796707
TMI Blog2020 (9) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... p ITA No.4262/Del/2016 as the lead case. Facts of the case, in brief, are that the assessee is a company engaged in the business of trading of equity shares, securities and commodities through recognized stock exchanges. It filed its return of income on 31st October, 2007 declaring total income at Rs. 86,67,680/-. The return was processed u/s 143(1) of the Act, vide intimation dated 21st February, 2009. A search and seizure action u/s 132 of the Act was initiated in the case of the assessee as part of Jaypee Group on 30th March, 2012. In response to notice u/s 153A issued on 05.08.2013, the assessee filed its return of income on 2nd September, 2013 declaring a total taxable income of Rs. 86,67,680/- which was the income as per the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the words 'total income' as used in Section 153A would only mean undisclosed income discovered from seized / incriminating material. (d) On the facts and in the circumstances of the case, the Ld. CIT(A) had erred in law and on facts in adopting a restrictive and pedantic interpretation of the scope of assessment u/s 153A r.w.s,153C of the Act. (e) On the facts and in the circumstances of the case, the Ld. CIT(A) had erred in law and on facts in arriving at the conclusion that the words 'total income' as used in section 153A would only mean income unearthed during search when the decision of the Hon'ble High Court of Karnataka in the case of Canara Housing Development Company Vs. DC1T dated 09-08-2014 has held that total income inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant that decision of the Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs. Kabul Chawla 2015 61Taxmann.com 412(Del), is squarely applicable the facts of the appellant. Conclusion: In view of the above, it is clear that: a) No assessment/reassessment proceedings, were pending as on 30.3.2012 and hence, no assessment was abated. b) The addition made by the A O is not based on any incriminating documents/seized material found during the course of search and seizure action u/s 132 of the Act, on 30.3.2012. From the above facts, it is clear that no assessment was abated at the time of initiation of action u/s 132 on 30.3.2012 and also, the additions made in assessment order u/s 153A dated 24.3.2015, are not based on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Delhi in the case of CIT Vs. Kabul Chawla 2015, 61 Taxmann.com 412(Del). In view of the above, it is not necessary to adjudicate ground no. 12 to 14 and hence, treated to be allowed." 8. The ld. DR could not controvert the above factual findings given by the CIT(A) that no incriminating material was found during the course of search and the assessment was not pending on the date of search. Therefore, following the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla (supra), which has subsequently been reiterated in the case of PCIT vs. Varun Beverages Ltd. in ITA 561/2019, order dated 02.07.2019. We do not find any infirmity in the order of the CIT(A). We find the Hon'ble Delhi High Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earch and the assessment was not pending on the date of search, therefore, respectfully following the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla (supra) and PCIT vs. Varun Beverages Ltd. (supra), we uphold the order of the CIT(A) and the grounds raised by the Revenue are dismissed. So far as the contention of the ld. DR that the decision of the Hon'ble Delhi High Court in the case of Kabul Chawla (supra) has not been accepted by the Department and the SLP against the same has been filed before the Hon'ble Supreme Court is concerned, the same, in our opinion, cannot be a ground to take a contrary view than the consistent view taken by the jurisdictional High Court unless and until the same is rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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