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TMI Blog2023 (8) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 (5) TMI 1224 - DELHI HIGH COURT] as clearly held that in absence of any incriminating material, no addition can be made in the assessment framed u/s. 153A/153C. In the present case, there is no dispute with regard to the fact that additions made by the AO towards cash credit being capital introduced in Dragon Movies is not based on any incriminating material found as a result of search. Therefore, additions made by the AO towards unexplained cash credit is unsustainable under law. Addition deleted - Decided in favour of assessee. - ITA No. 1157/Chny/2018 - - - Dated:- 2-8-2023 - Shri Mahavir Singh, Hon ble Vice President And Shri Manjunatha.G, Hon ble Accountant Member For the Appellant : Mr.Y.Sridhar, CA For the Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case since the appellant had proved the source for the investments and the said investment is not in the Asst. year 2005-06. 6. The Id. CIT(A) ought to appreciate that after giving finding that there exists Agriculture Income from the Agriculture activity, he erred in treating the Agriculture Income as Income which finding is against law and facts of the case and beyond the legislative competence of the central Government to tax Agriculture Income. 7. The learned CIT (A) ought to have appreciated that the provisions of section 234B C is not applicable to the facts of the case. 8. The appellant craves leave to file additional grounds. 3. At the outset, we find that there is a delay of 352 days in appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a search and seizure u/s. 132 of the Income Tax Act, 1961 (in short the Act ), was conducted in the residence of the assessee on 16.05.2007. Consequent to search, notice u/s. 153A of the Act, was served on the assessee calling for true and correct return of income for AY 2005-06. In response to notice u/s. 153 of the Act, the assessee has filed her return of income on 28.10.2009. The case was selected for scrutiny and during the course of assessment proceedings, the AO noticed that the assessee had filed her return of income u/s. 139 of the Act. It was further noticed that the assessee has introduced a capital of Rs. 10,40,000/- in Dragon Movies. Since, the assessee could not explain source for capital, the AO has made addition of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee could not explain as to how fact related to said issue was before the AO when the assessment has been completed u/s. 153A of the Act. Therefore, he submits that additional grounds filed by the assessee cannot be admitted. 7. We have heard both the parties, perused the petition filed by the assessee for admission of additional grounds and after considering relevant facts brought on record, we find that legal ground taken by the assessee in light of certain judicial precedents is purely a legal issue which can be raised at any time of proceedings, including pending proceeding before the Tribunal, and thus, by following the decision of the Hon ble Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly re-assessed the income of the assessee, and has made addition towards unexplained cash credit. Thus, he submits that the additional grounds filed by the assessee may be dismissed. 10. We have heard both the parties, and perused the materials available on record. It is a well-established principle of law by the decision of the Hon ble Supreme Court in the case of PCIT v. Abhisar Buildwell Pvt. Ltd. (supra) that no addition can be made in absence of incriminating material found as a result of search, if the assessment is unabated/concluded as on the date of search. A similar view has been taken by the Hon ble Delhi High Court in the case of PCIT v. Meeta Gutgutia (supra), where the Hon ble Delhi High Court clearly held that in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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