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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 ..... the Income-tax Act, 1961 (hereinafter referred to as "the Act"), dated 17/06/2021 for Assessment Years 2016-17 and 2015-16. 2. Grounds taken by the Revenue are reproduced as under: 1. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was right in not considering the statement recorded during the course of search/survey and incriminating document despite the fact that the discrepancy in claim of deduction was found and identified from books of a/c during the course of search/survey?" 2. "Whether on the facts and under the circumstances of the case and in Law, the Id. CIT(A), Mumbai has erred in deleting the disallowance u/s 14A of the Income Tax Act, 1961 thereby overlooking the computational procedur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the course of the assessment proceedings, the assessee was asked to furnish justification for sales of stock at zero invoice value to its sister concern. Relevant para 3.1 from the impugned assessment order is reproduced as under: "3.1 During the course of the search proceedings, it was noticed that the assessee had sold stock at zero invoice value to one of its sister concern - M/s. Wine Cellar. Further, on perusal of the details filed by the assessee during the course of the search assessment proceedings, it was further noticed that the total value of such sales was Rs. 1,16,73,202/- during the relevant assessment year. In view of this, during the course of the assessment proceedings, the assessee was asked to furnish justificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng during the course of search which could be said to be incriminating in nature. Assessee submitted that the impugned assessment year is not an abated year considering the date of conduct of search and, therefore, recourse to the impugned assessment year was permissible to the AO only on the basis of incriminating material found or discovered during the course of search and which pertained to the year under consideration. Since nothing was found to this effect, no addition is warranted as made by the AO. 5.4. Ld. CIT(A) elaborately dealt with the contention raised by the assessee by referring to several judicial precedence and gave his observations and findings in favour of the assessee deleting the addition made by the Ld. AO. The said o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of hearing before us, Ld. DR supported the order of Ld. AO. We take note of the recent decision of the Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd. reported in (2023) 149 taxmann.com 399 (SC) wherein the assessment framed u/s. 153A of the Act are liable to be quashed where additions have been made without reference to any incriminating material found in the course of search relating to the addition so made. On confrontation of this decision to the Ld. DR, nothing contrary was brought on record to dislodge the observations and findings arrived at by the Ld. CIT(A). Ld. Counsel for the assessee placed strong reliance on the order of the Ld. CIT(A) fortified by the decision of Hon'ble Supreme Court in the case of Abh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O would assume the jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search and the other material available with the AO including the income declared in the returns; and (iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under section 132 or requisition under section 132A of the Act, 1961. However, the completed/unabated assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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