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TMI Blog2022 (8) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... : Sh. N. S. Jangpangi , CIT DR ORDER Per Dr. B. R. R. Kumar , Accountant Member : The present appeals have been filed by the assessee against the orders of Ld. CIT(A), Muzaffarnagar dated 28.11.2016. 2. Heard the arguments of both the parties and perused the material available on record. ITA No. 1805/Del/2017: A.Y. 2006-07: 3. The only effective issue in the present appeal is against the part relief allowed by Ld. CIT(A). 4. Two additions were made in the assessment order passed u/s. 153A, i.e. Rs. 1,45,025/- on account of interest income from HSBC Bank Account and Rs. 56,264/- being the difference between the total income shown in the original return of income and shown in the return filed u/s. 153A. The Ld. CIT(A) reduced the first addition and upheld the addition to the extent of Rs. 80,265/- (81670-1405). 5. As to the second addition, no relief was allowed and the addition of Rs. 56,264/- was sustained. 6. In this case original return of income was filed on 10.10.2006 as per the assessment order and thus as on the date of search i.e. 14.03.2012, the said assessment attained finality and hence addition in the assessment order passed u/s. 153A co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 380 ITR 573/120151 234 Taxman 300/61 taxmann.com 412 (Delhi) (para 4), (ii) CIT v. Continental Warehousing Corpn. (Nhava Sheva) Ltd. [2015] 374 ITR 645/232 Taxman 270/58 taxmann.com 78 (Bom.) (para 4) (iii) Principal CIT v. Kurele Paper Mills (P.) Ltd. [2016] 380 ITR 571 (Delhi) (para 4), (iv) CIT v. Lancy Constructions [2016] 383 ITR 168/237 Taxman 728/66 taxmann.com 264 (Kar.) (para 4), (v) CIT v. ST. Francies Clay Decor Tiles [2016] 240 Taxman 168/70 taxmann.com 234 (Ker.) (para 5) and (vi) CIT v. Promy Kuriakose [2016] 386 ITR 597 (Ker.) (para 5). 2. CIT Vs. Raj Kumar Arora [2014] 52 taxmann.com 172 (Allahabad)/[2014] 367 ITR 517 (Allahabad) where Hon'ble Allahabad High Court held that Assessing Officer has power to reassess returns of assessee not only for undisclosed income found during search operation but also with regard to material available at time of original assessment. 3. CIT Vs. Kesarwani Zarda Bhandar Sahson Alld. [ITA No. 270 of 2014] (Allahabad) where Hon'ble Allahabad High Court held that Assessing Officer has power to reassess returns of assessee not only for undisclosed income found during search operation but also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 153A without any fetters and reassess total income taking note of undisclosed income, if any, unearthed during search. 9. Filatex India Ltd. Vs. CIT (49 taxmann.com 465) where Hon'ble Delhi High Court held that during assessment under section 153A, additions need not be restricted or limited to incriminating material, found during course of search. 10. The Hon'ble Delhi High Court in the case of CIT Vs. Kabul Chawla (supra) held as under: vii. Completed assessments can be interfered with by the A.O. while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 11. The Hon'ble Delhi High Court in its decision in the case of Pr. CIT vs. Meeta Gutgutia (2017) 395 ITR 526 in paras 69 to 72 has held as under: 69. What weighed with the Court in the above decision was the habitual concealing of income and indulging in clandestine operations and that a person indulging in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to suggest that any statement made by directors contained any such admission--Tribunal was fully justified in concluding that assumption of jurisdiction u/s. 153A qua Assessee was not justified--Additions made u/s. 68 on account of statements made by Assessee's Directors in course of search u/s. 132 were also rightly deleted by tribunal--Having regard to materials seized in course of search u/s. 132 and statements made on behalf of Assessee, assumption of jurisdiction u/s. 153A and consequent additions made by AO were not justified-- Revenue's appeal dismissed. 13. Hon'ble Delhi High Court in the case PCIT (Central) Ors. vs. Anand Kumar Jain (HUF) Ors. (2021) 432 ITR 0384 (Delhi) has held that, Search and seizure--Assessment in case of search--Assessee purchased shares of an unlisted private company in 2010-- This unlisted company then merged with another unlisted company, F and shares of this merged entity were allotted to Assessee--Subsequently, merged entity allotted further bonus shares to Assessee and thereafter it was listed on Bombay Stock Exchange--Assessee sold these shares on stock exchange and earned a huge profit which was claimed as exempt in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stments on the year under consideration which incurred loss of Rs. 19,182/- ($ 417.74). The above submission of the appellant has been forwarded to the AO for remand report vide letter dated 16.06.2016. Upon consideration of facts it is noted that the AO has erred in computing the interest income on accrual basis. The income is said to have accrued only when the appellant has got right to receive the same. On this basis and on the perusal of income statement as furnished by the HSBC Bank for FY 2008-09, it is noted that the appellant has not earned any income from the said account. Therefore, the addition made by the AO of Rs. 16,23,822/- is hereby deleted. 16. On perusal of the record, we find that the amount of Rs. 16,23,822/- mentioned by the Ld. CIT(A) be read as Rs. 12,22,265/- which was addition made by the AO on account of interest received as per para No. 3.4 of the Assessment Order. 17. With regard to loss incurred of Rs. 19,182/-, the matter is being referred to the file of the AO to determine the type of loss viz. speculative, non-speculative or business and allow the same in accordance with the provisions of law. 18. In the result, the appeals of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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