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TMI Blog2018 (6) TMI 1818X X X X Extracts X X X X X X X X Extracts X X X X ..... red appeal against the order of Commissioner of Income Tax (Appeals) III, New Delhi dated 10/2/2010 passed in appeal filed by the assessee against the order of the Ld. AO passed under section 153A read with section 143 (3) of the act on 28/12/2001. The Ld. AO has raised the following grounds of appeal in ITA No. 2131/Del/2010 for Assessment Year 2000-01:- 1. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in annulling the assessment by holding that no document was seized during the search pertaining to this Assessment Year? 2. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law in not following the Circular No. 7 of 2003 dated 05-09-2003 issued by the CBDT. 3. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law by not appreciating the fact that there is no precondition that documents pertaining to each of the assessment year falling under the provisions of Section 153C/ 153A should be found? 4. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law by admitting additional ground of the assessee without giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Punjab and Haryana High Court (2005) 124 COMP CAS 201 PH, , 2004-4 Comp LJ 288P , 2004 55SCL 165 P H dated 30/7/2004 letter affirmed by the Hon ble Supreme Court in civil appeal number 6572 of 2004 dated 12/3/2013 in assessee s own case. 6. Similar grounds have also been raised in all the four appeals before us. 7. However, with the additional ground the revenue preferred no application for admission of the additional ground. Even otherwise, the revenue did not submit the decisions relied upon by them. 8. The Ld. authorized representative vehemently objected the additional ground of the revenue. 9. We have carefully considered the additional ground raised by the Ld. AO. We find that Ld. assessing officer wants us to consider the above decision while deciding the appeal of the AO. We have also read the decision relied upon by the revenue. The Hon ble Punjab and Haryana High Court rendered the above decision with respect to various schemes of deposits operated by the company. It dealt with the facts that after the commencement of business, assessee claims to be subject to regulation, under the provisions of the Companies Act, 1956, under the Department o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nating material found during the course of search. Hon ble Delhi High Court in case of CIT versus in 380 ITR 573 and held as under:- Summary of the legal position 37. On a conspectus of section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under : (i) Once a search takes place under section 132 of the Act, notice under section 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six assessment years immediately preceding the previous year relevant to the assessment year in which the search takes place. (ii) Assessments and reassessments pending on the date of the search shall abate. The total income for such assessment years will have to be computed by the Assessing Officers as a fresh exercise. (iii) The Assessing Officer will exercise normal assessment powers in respect of the six years previous to the relevant assessment year in which the search takes place. The Assessing Officer has the power to assess and reassess the total income of the aforementioned six years in separate assessment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s III, New Delhi dated 10/2/2010 in appeal filed by the assessee against the order of the deputy Commissioner of income tax, Central circle 4, New Delhi passed under section 153A read with section 143 (3) of the income tax act 1961 on 28/12/2007 determining the total income of the assessee at Rs. 6 9, 76, 158/-. The revenue has raised the following grounds of appeal in ITA No. 2132/Del/2010 for Assessment Year 2001-02:- 1. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in annulling the assessment by holding that no document was seized during the search pertaining to this Assessment Year? 2. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law in not following the Circular No. 7 of 2003 dated 05-09-2003 issued by the CBDT. 3. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law by not appreciating the fact that there is no precondition that documents pertaining to each of the assessment year falling under the provisions of Section 153C/ 153A should be found? 4. Whether on the facts and in the circumstances of the case, the CIT(A) has erre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of search. Revenue aggrieved with the order of the learner CIT A has preferred an appeal before us. 20. The Ld. departmental representative vehemently relied upon the order of the Ld. assessing officer and submitted that there is no requirement of finding out any incriminating material before making an addition. 21. The Ld. authorized representative vehemently supported the order of the Ld. CIT A submitted that now this issue has reached the level of the High Court in the Hon ble Delhi High Court in series of decisions is held that the completed assessment cannot be disturbed without finding out incriminating material pertaining to that year. 22. We have carefully considered the rival contention and per usual of the order of the lower authorities. We find that the facts of the present case are similar to the appeal of the revenue for assessment year 2000 01. In the present case, also the Ld. assessing officer in the completed assessment has made the additions without finding any incriminating material. Therefore, for the reasons given by us in assessment year 2000 01 in appeal of the revenue, for similar reasons we dismiss the appeal of the revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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