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TMI Blog2022 (5) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... stances, we are of the opinion that the ratio laid down by the Jurisdictional High Court in the case of CIT Vs Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] is squarely applicable, wherein it is held that when there is no incriminating material was unearthed during the course of search in respect of an issue, then no addition in respect of such an issue can be made in the assessment u/s 153A 153C. The similar view has been taken in the case of Mount Echo Build Well Pvt. Ltd. [ 2021 (12) TMI 1351 - ITAT DELHI] - In the light of the above decision of the Jurisdictional High Court and the decision of the Tribunal which are binding precedent, we allow the appeal filed by the assessee and delete the addition made by the A.O which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in confirming the addition to the extent of Rs.40,00,000/- being the amount of share capital by treating it as alleged unexplained cash credit u/s. 68 is bad in law and against the facts and circumstances of the case, more so when there was no incriminating material was found during the course of search and more so when the impugned year was the first year of the assessee company. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the addition to the extent of Rs.40,00,000/- made by Ld. AO without observing the principles of natural justice. 6. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the no proper enquiry was conducted without appreciating the fact that powers of the first appellate authority are co-terminus, with those of the AO, and he has not only the jurisdiction but also duty to conduct relevant inquiries wherever required as held by the Hon ble Court including the jurisdictional High Court in case of Commissioner of Income-tax-II v. Jansampark Advertising Marketing (P) Ltd. [2015] 56 taxmann.com 286 (Delhi). 4. That the order of the CIT(A) is perverse, erroneous and is not tenable on facts and in law. 5. That the grounds of appeal are without prejudice to each other. 6. The appellant craves leave to add, amend, alter or forgo any ground(s) of appeal either before at the time of he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst sustaining the addition of Rs. 40,00,000/- u/s 68 of the Act, the assessee has preferred the appeal in ITA No. 637/Del/2016 and as against the deletion of Rs. 2,49,50,000/-, the Revenue has preferred an appeal in ITA No. 1391/Del/2016 on respective grounds mentioned above. 5. The main contention of the Ld. Counsel for the assessee is that, the search and seizure operation u/s 132(1) of the Act has been carried out on 11/03/2011 in the Paramount Group (of which the assessee company is a part) along with Gulshan Group and Ajnara Group. There is no incriminating material found in the said search against the assessee. The assessment order has been passed on 28/03/2013 and the addition has been made only regarding receipt of share capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any evidence, material or even any indication found in the Search Seizure operation regarding bogus Share Capital by the assessee. 8. The above said fact of not finding any incriminating material during the search which relate to the impugned addition has not been disputed by the Ld. DR and has not placed any material to contradict the above said facts. 9. By looking into the above facts and circumstances, we are of the opinion that the ratio laid down by the Jurisdictional High Court in the case of CIT Vs Kabul Chawla reported in (2016) 380 ITR 573 is squarely applicable, wherein it is held that when there is no incriminating material was unearthed during the course of search in respect of an issue, then no addition in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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