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TMI Blog2022 (7) TMI 1378X X X X Extracts X X X X X X X X Extracts X X X X ..... that any notice under Section 153A of the Act could have been initiated against her. The said facts are not disputed by the counsel for the Revenue. On the date of search, admittedly, the assessment with respect to the AY under consideration 2011-12 admittedly stood completed. Since no assessment was pending for the relevant AY 2011-12 on the date of search and no incriminating material was found during the course of search, the issue is covered in favour of the assessee by the judgment of this Court in the case of Commissioner of Income Tax v. Kabul Chawla[ 2015 (9) TMI 80 - DELHI HIGH COURT] and Principal CIT vs. Meeta Gutgutia [ 2017 (5) TMI 1224 - DELHI HIGH COURT] - No substantial questions of law. - HON'BLE MR. JUSTICE MA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res of penny stock companies was disclosed as LTCG by its beneficiaries, and the LTCG earned by the promoters and family members has been used for personal use. 2. In this regard reliance has been placed on the statement of Sh. Madho Gopal Agarwal recorded on oath under Section 132(4) of the Act on 3rd August, 2015 and letter dated 31st July, 2015 issued by Sh. Madho Gopal Agarwal. The case was centralised as per the orders passed under Section 127 of the Act and a notice under Section 153A of the Act was issued on 26th September, 2016, which was duly served. Upon receipt of notice the assessee filed her return for the relevant assessment year 2011-12 declaring an income of Rs. 5,53,080/- on 2nd March, 2017. During the year under conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no incriminating evidence or document was found during the search proceedings for the relevant assessment year. The assessee further contended that the statement of Sh. Madho Gopal Agarwal recorded under Section 132(4) of the Act during the search proceedings does not constitute as incriminating material. The assessee further relied upon the judgment of this Court in the case of Commissioner of Income Tax vs. Kabul Chawla (2016) 380 ITR 573 to contend that the order of the AO was contrary to law and liable to be set aside. However, CIT(A) relying upon the statement of Sh. Madho Gopal Agarwal confirmed the addition made by the AO and dismissed the appeal vide order dated 17th July, 2018. The assessee being aggrieved by the dismissal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive evidence. The ITAT placed reliance on para 35 of CIT v. Best Infrastructure India Pvt. Ltd. (supra) as reproduced hereinbelow:- 35. Turning to the facts of the present case, it requires to be noted that the statements of Mr. Anu Aggarwal, portions of which have been extracted hereinbefore, make it plain that the surrender of the sum of Rs. 8 crores was only for the AY in question and not for each of the six AYs preceding the year of search. Secondly, when Mr. Anu Aggarwal was confronted with A-1, A-4 and A-11 he explained that these documents did not pertain to any undisclosed income and had, in fact been accounted for. Even these, therefore, could not be said to be incriminating material qua each of the preceding AYs. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Agarwal and she, therefore, specifically disputed that any notice under Section 153A of the Act could have been initiated against her. The said facts are not disputed by the counsel for the Revenue. 9. On the date of search, admittedly, the assessment with respect to the AY under consideration 2011-12 admittedly stood completed. Since no assessment was pending for the relevant AY 2011-12 on the date of search and no incriminating material was found during the course of search, the issue is covered in favour of the assessee by the judgment of this Court in the case of Commissioner of Income Tax v. Kabul Chawla (supra) and Principal CIT vs. Meeta Gutgutia (2017) 395 ITR 526. The relevant paragraphs are reproduced hereinbelow:- 10. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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