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TMI Blog2022 (2) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax, Central Circle-7(4), Mumbai (hereinafter referred to as ld. AO). 2. Though the Revenue has raised several grounds, we find that one of the crucial grounds raised thereon is challenging the action of the ld. CIT(A) in deleting the addition made on account of unexplained investment in M/s. Global Capital Markets Ltd., together with commission expenditure thereon, in the search assessment completed u/s.153A of the Act, for want of incriminating material found during the course of search. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is an individual deriving income from house property, capital gains and other sources. The original return of income was filed by the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tely no incriminating material found during the course of search for framing this addition. The relevant observation of the ld. CIT(A) is reproduced hereunder:- "6.3.33. In view of the aforesaid detailed discussion and respectfully following the judicial precedents, I am of the view that for the assessment year which do not abate proceedings u/s 153A of the Act does not empower the AO to adjudicate the issues which are not based on any incriminating material found during the course of search and, hence, in such cases the AO does not have jurisdiction to make, additions/disallowances which are not based on any incriminating material found during the course of search. To conclude, in the case of completed/un-abetted ^assessments, where no i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings cannot disturb the originally concluded assessment unless there is incriminating material found during the course of search relatable to such assessment year. Reliance in this regard is placed on the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. Continental Warehousing Corporation Ltd., reported in 374 ITR 645 and also on the decision of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla reported 380 ITR 573. 7. We find that the ld. DR before us vehemently argued that the issue of absence of incriminating material was raised by the assessee for the first time only before the ld. CIT(A) and that the ld. CIT(A) ought not to have entertained the said ground and granted relief to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration. He also placed reliance on the following decisions in support of his contentions:- * CIT Vs. St. Francis Clay Decor Tiles 70 taxmann.com 234 (Ker) (2016) * E.N. Gopakumar Vs. CIT 75 taxmann.com 215 (Ker)(2016) * CIT Vs. Raj Kumar Arora 52 taxmann.com 172 (All)(2014) * PCIT Vs. Param Dairy Ltd. 133 taxmann.com 148 (SC)(2021) wherein the Hon'ble Apex Court has granted SLP and issued notice against the decision of Hon'ble Delhi HC wherein it is held that completed assessments can be interfered with by the AO while making assessment u/s 153A only on the basis of some incriminating material unearthed during the course of search which was not produced or not already disclosed or made known in the course of original as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lhi High Court in the case of Kabul Chawla referred to supra had been dismissed by the Hon'ble Apex Court which is reported in 380 ITR (ST)4 (SC). Though SLP has been granted by the Hon'ble Apex Court in some of the cases referred to supra on the impugned issue of existence of incriminating material found during search for framing addition in respect of unabated assessment , we find that as on date, the issue is squarely covered in favour of the assessee in Continental warehousing corporation referred supra. Hence we are bound to follow the same and decide the issue before us. 10. In view of the aforesaid detailed observations, we have no hesitation in confirming the order of the ld. CIT(A) and dismiss the appeal of the Revenue on the lega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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