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TMI Blog2024 (7) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... ound in the course of search of the assessee for the impugned assessment year. As respectfully following the decision of Abhisar Buildwell (P.) Ltd. [ 2023 (4) TMI 1056 - SUPREME COURT ] as no incriminating material has been unearthed during the course of search for the relevant assessment years, no addition can be made by the AO in the assessments. Consequently, the assessment orders passed for the impugned assessment years stand quashed. Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... search & seizure operation u/s. 132(1) of the Act was conducted in the case of Mansha Group on 11.10.2018, wherein premises of the assessee was also covered. Consequent to the search action, ld. Assessing Officer issued notices u/s. 153A for the relevant six years. The assessment years before us, out of the six relevant years are 2015-16 and 2016-17. The assessment year wise details are as under: Assessment Year Date of filing of return Last date of issue of notice u/s 143(2) Date of search 2015-16 26.11.2015 30.09.2016 11.10.2018 2016-17 30.11.2016 30.09.2017 11.10.2018 5. In the course of assessment, ld. Assessing Officer noted that the assessee had sold stock at zero invoice value to one of its sister concern, i.e., M/s. Win ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act in the Return of Income filed in response to notice u/s. 153A of the Act, even though the assessee has earned Exempt income during the relevant assessment year. In view of the same, the assessee was asked to show cause as to why disallowance u/s. 14A of the Act read with Rule 8D should not be made for the relevant year under consideration." 5.2. Assessee furnished its reply which did not find favour with the Ld. AO. He completed the assessment by making an addition of Rs. 1,16,73,202/- by holding it as sales suppressed by the assessee and also made a disallowance of Rs. 92,61,952/- u/s. 14A r.w.r. 8D. 5.3. Aggrieved, assessee went in appeal before the ld. CIT(A) before whom it was strongly contested that additions made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions were made. These facts show that there was no "incriminating material" found during the course of search conducted u/s. 132 of the Act relating to the additions made. Hence, no addition can be made in absence of incriminating material for A.Y 2014-15, which is non-abated. Thus, the addition made on account of FOC sales to sister concern and the disallowance made u/s. 14A of the Act read with Rule 8D cannot survive in view of the binding judicial decisions as discussed above. 19. In view of the discussion in the foregoing paragraphs, the AO is directed to delete the impugned additions/disallowances made in the assessment order. Ground No. 2 raised by the appellant for A.Y. 2014-15 is, accordingly, ALLOWED…... &he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also undisputed that the year under consideration is an unabated year considering the date of conduct of search within the meaning of section 153A of the Act. Admittedly, no incriminating material has been referred to which has been found in the course of search of the assessee for the impugned assessment year. Accordingly, as relied on by the Ld. Counsel for the assessee, the decision of Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd.(supra) applies squarely to the facts of the present case. 7.1. The Hon'ble Supreme Court in para 14 in the above case has categorically held as follows :- 14. In view of the above and for the reasons stated above, it is concluded as under: (i) that in case of search under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pectfully following the decision of the Hon'ble Supreme Court in the case of Abhisar Buildwell (P.) Ltd. (supra), as no incriminating material has been unearthed during the course of search for the relevant assessment years, no addition can be made by the AO in the assessments. Consequently, the assessment orders passed for the impugned assessment years stand quashed. 9. Thus, the appeal vide ITA No.1570/Mum/2024 is dismissed. Since the identical issue is involved in the case of ITA No. 1571/Mum/2024 for AY 2015-16, which is also an unabated year within the meaning of section 153A of the Act, our observations and findings given above applies mutatis mutandis and is also accordingly dismissed. 10. In the result, both the appeals of the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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