DY. C.I.T. CENTRAL CIR.-2(2), Nagpur V. M/S SHREE AGRAWAL OIL INDUSTRIES PVT.LTD, Nagpur

ITA 363/NAG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1286 (ITAT-NAGPUR)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 25-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Assessee Lawyers: SACHIN LUTHRA
• Keywords: Unexplained cash credit; Search and seizure; Documents seized; Reassessment proceedings; Capital expenditure
• Section: 40A(3); 153A; 32; 132; 139

Judgement Text

1 ITA NO. 363/NAG/2016 . IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER.. I.T.A. NO.363/NAG/2016. ASSESSMENT YEAR : 2010 - 11. DY. COMMISSIONER OF INCOME - TAX, M/S SHREE AGRAWAL OIL CENTRAL CIRCLE - 2(2), NAGPUR. VS. INDUSTRIES PVT. LTD., NAGPUR. PAN AABCP0526C. APPELLANT. RESPONDENT. APPELLANT BY : SHRI A.R. NINAWE. RESPONDENT BY : SHRI SACHIN LUTHRA. DATE OF HEARING : 2 4 - 11 - 2016 DATE OF PRONOUNCEMENT : 19 TH DEC., 2016 O R D E R. PER SHAMIM YAHYA , A.M. : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - 3 , NAGPUR DATED 2 2 - 03 - 2016 AND PERTAINS TO ASSESSMENT YEAR 20 10 - 11 . THE GROUNDS OF APPEAL READ AS UNDER : 1. ON THE FACTS AND CI RCUMSTANCES OF THE CASE AND I N L AW , THE L EA RN ED C I T ( A ) ER R E D I N HOLDING THAT THE NOTICE AND ACTION U/S 153A OF THE LT . ACT WAS BAD IN LAW , EVEN THOUGH THE ASSESSING OFFICER HAD RECORDED HIS SATISFACTION THAT THE DOCUMENTS SEIZED, BELONGED TO THE ASSESSEE, WHICH IS THE ONLY PRE - CONDITION FOR ISSUE OF NOTICE UNDER SECTION 153A OF THE INCOME - TAX ACT , 1961? 2. ON THE FACTS AND I N THE CIRCUMSTANCES OF THE CASE AND IN LAW , THE LEARNED CIT(A) HAS ERRED I N UPHOLDING THE ADDITIONAL GROUND AND CANCELLING THE ASSESSMENT WHEREAS THE DELHI HIGH COURT IN THE CASE OF CIT VS . ANIL KUMAR BHAT I A REPO R TED IN 352 ITR 493 AND THE KARNATAKA HIGH COURT COU R T IN THE CA SE OF CANARA HOUSING DEVELOPMENT CO. VS . DCIT , HAVE AFFIRMED THE SCOPE OF THE ASSESSING OFF I CER TO ASSESS THE TOTAL INCOME IN THE PROCEEDINGS U/S.153A OF THE INCOME TAX ACT . 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW , THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE ASSESSING OFFICER IS REQUIRED TO ASSESS OR RE - ASSESS THE TOTAL I NCOME OF 6 ASSESSMENT YEARS AS PER PROVISIONS OF SECTION 153A( 1 )(B) OF THE I . T . ACT . 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN TREATING MERE PROCESSING OF RETURN U/S . 143(1) OF THE LT . ACT , 1961 , AS ' COMPLETED ASSESSMENT ' BY IGNOR I NG THE DECISION OF THE SUPREME COURT IN THE CASE OF DCIT VS . ZUAR I ESTATE DEVELOPMENT & INVESTMENT CO.LTD . (CA 6758 OF 2004) AND CIT VS . RA J ESH JHAVERI STOCK BROKERS (P) LTD . 291 ITR 500 (2007). 2 ITA NO. 363/NAG/2016 . 5. ON THE FACTS AND C I RCUMSTANCES OF THE CASE AND I N LAW , THE LEARNED CIT(A), BY RELYING ON THE DEC I SION OF THE HON'BLE ITAT , NAGPUR , IN THE CASE OF LATE SHRISHAKTIKUMARSANCHETI IN ITA NO .203/NAG/2014 DATED 5 . 2 . 2016 , HAS FAILED TO APPRECIATE THAT THE HON'BLE ITAT, PUNE BENCH, HAS HELD IN THE CASE OF KRANTI REALTORS PVT LTD. (ITA NO . 2021 TO 2023/PN/2013 DATED 10.11.2015), WHEN RETURN WAS PROCESSED U/S . 143(1) AND NO ASSESSMENT WAS MADE, ADD ITIONS MAYOR MAY NOT BE BA SED ON INCRIMINATING MATERIAL FOUND DURING SEARCH 6. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW , THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY DISALLOWING EXCESS LEGAL FEES OF RS . 15 , 0901 - , WITHOUT DISCUSSING ANYTHING ON MERIT . 7. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND I N LAW , THE LEARNED CIT(A) HAS ERRED IN DELET I NG THE ADDITION MADE BY D I SALLOWING DEDUCTION ON ACCOUNT OF SHORTAGES OF RS . 46 , 675/ - , WITHOUT DISCUSSING ANYTHING ON MERIT . 8. ON T HE FACTS AND IN THE C I RCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED I N DELETING THE ADDITION MADE BY DISALLOWING UNEXPLAINED CRED I TS ON ACCOUNT OF UNSECURED LOANS OF RS . 21 , 85 , 616 1 - , W I THOUT DISCUSSING ANYTHING ON MERIT . 9. ON THE FACT S AND I N THE CIRCUMSTANCES OF THE CASE AND IN LAW , THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION BY DISALLOWING UNEXPLAINED CREDITS ON ACCOUNT OF CREDITORS OF RS . 15 , 09 , 377/ - , W I THOUT DISCUSSING ANYTHING ON MER I T . 10. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW , THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY TREATING LAND AL L OTMENT FEES OF RS . 5 , 000 1 - AS CAPITA L EXPENDITURE , W I THOUT DISCUSSING ANYTHING ON MERIT . 11. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW , THE L EARNED CIT(A) HAS ERRED IN DELETING THE ADDIT I ON MADE BY DISALLOW I NG PAYMENTS U/S . 40A(3) OF RS . 47 , 471/ - , WITHOUT DISCUSSING ANYTH I NG ON MERIT . 12. ON THE FACTS AND IN THE CIRCUMSTANCES OF TH CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY DISALLOWING PURCHASES FROM SISTER CONCERNS OF RS . 4,83,000/ - U/S 40A(2)(B) WITHOUT DISCUSSING ANYTHING ON MERIT. 2. IN THIS CASE THE ASSESSEE HAS FILED RETURN OF INCOME U/S 139(1) ON 30 - 09 - 2010 DECLARING TOTAL INCOME AT RS.72,120/ - . THE RETURN WAS PROCESSED U/S 143(1) OF THE I.T. ACT ON 29 - 08 - 2011. PURSUANT TO SEARCH AND SEIZURE OPERATION U/S 132, NOTICE U/S 153A WAS ISSUED ON 13 - 06 - 2012. IN THE ASSESSMENT U/S 143(1) READ WITH SECTION 153A THE AO MADE VARIOUS ADDITIONS BY EXAMINING THE PROFIT AND LOSS ACCOUNT, TAX AUDIT REPORT. THE TOTAL ADDITION MADE BY THE AO IS AT R.45,06,200/ - . NO ADDITION WAS BASED UPON ANY MATERIAL SEIZED DU R ING THE SEARCH. 3. BEFORE THE LEARNED CIT(APPEALS) THE ASSESSEE HAS FILED AN ADDITIONAL GROUND CHALLENGING THAT THE ORDER PASSED BY THE AO WAS WITHOUT JURISDICTION AND BAD IN LAW AS THE JURISDICTION U/S 153A WAS VITIATED AND THE ADDITION BEING NOT BASED UPON ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH . 3 ITA NO. 363/NAG/2016 . CONSIDERING THE ASSESSEES SUBMISSIONS, LEARNED CIT (APPEALS) HELD AS UNDER : 14. T HE I SSUE WAS FIRST DECIDED BY HON SPE C IA L BENCH OF H O N' BL E MUMBAI ITAT IN THE CASE OF ALCARG O GLOBAL LOGISTIC S LTD . THE SPECIAL BENCH HAD TO CONSIDER THE ISSUE WH ETHER AN ASSESSMENT U/S153A ENCOMPASSED AD D ITI O NS NO T B ASE D O N ANY INCRIMINATING MATERIAL FOUND DURING THE SEARCH. THE SPECIAL BENCH HELD AS UNDER: > ' ( I ) I N AS SESS MENTS T HAT ARE AB ATE D , THE AO RET A IN S THE O RI G INAL JUR I SDIC TI O N AS WELL A S T H E JU R ISDICT I ON CON FE RR ED ON H IM BY S. 153A F O R WH I CH ASSESSMENTS SHAL L BE M A DE F O R E A CH O F T H E 6 ASSES SM E N T Y EARS SEPA RATELY : (II) I N O T H ER CA SES, IN A D DITI O N T O T H E I NCO ME T H A T HAS ALREADY B EEN ASSESSED, T H E ASSESSMENT U / S 1 53 A W ILL B E MAD E ON TH E B AS I S O F I NC RIMINATIN G M ATERIAL I . E . ( A ) THE BOO K S O F ACC O UNT S AND O T H ER DOCUMENTS F O UND I N TH E CO URSE O F O RI G I N AL ASSESS M ENT AND (B ) UN DI SC L O SED I NCO ME O R PR OP ERTY DIS C L O SED IN THE CO URSE O F SEAR C H.' 15 . IN CO NTINENTAL WAREHOUSING CO R PORATION (NH A VA SHEVA ) L T D . ( SUP R A ) , THE HON ' BLE BOMBAY HIGH COURT REFERRE D T O THE DECIS I ONS O F HON ' BLE NAGPUR B E NCH OF B O MBA Y H I G H COURT IN THE CASE OF MURLI AGRO P R O DUCTS LTD . AND O F SPE C IA L BE NCH OF ITAT , MUMBAI I N THE CASE OF AL L C AR GO GLOBAL L O GISTICS LTD . THE H O N' B LE HIGH COURT U PHELD THE DEC I SION OF SPEC IA L B E NCH , ITAT , MUMBA I DEL IVERED IN THE CASE OF A LL C A RGO GL O BAL LOGISTI C S L T D . 16 . SI MILA R VLEW WA S TAKEN IN THE C A SE OF CIT (CENTRAL) - III VS. KABUL CHAWLA ITA NO . 7 0 7 /20 14 DECI DED BY D E L HI HIG H CO URT ON 28 . 0 8 . 2 0 15 . 17 . F OR THE ASSESSMENT YEAR UNDER DISCUSSION IN ASSESSEES CASE, THE TIME FOR ISSUE OF NOTICE U/S 143(2) WAS OVER AS ON THE DATE OF ISSUE OF NOTICE U/S. 153A. THE ASSESSEE FILED THE RETURN U/S. 139(1) ON 30.11.2010. THE RETURN WAS PROCESSED ON 2 9 . 0 8 . 201 1 . THE N O TI CE U/ S 153A WAS ISSUED BY T H E A O T O T H E AS SESSEE O N 13 . 06 . 2012 . THE H O N ITAT, NAGPUR DECIDE D O N THE I S SUE IN THE CASE O F ACIT VS L A TE SHRI SHAN T I KUMA R SANCHETI IN ITA N O . 203/NAG /20 14 IN ITS JUDG M E NT DATED 0 5. 02 . 2 016 . THE HON ' BLE ITAT, N AGPUR HELD AS UN DER : ' W E H AVE PERUSE D T H E IM PU G N E D ASSESS M E NT O R D ER A ND NOTICE D T H AT T HE R E WAS N O MENT I ON O F A NY I N C RIMI N ATING M A T ERI A L ON T H E BASIS O F WHI CH T HE I MPUG N E D A DD I TI ON WA S MA D E . FURTHER IT IS ALSO AN ADMITTED FACTUA L POS I TION THAT THE RETURN U/S. 139 WAS FI L ED ON 31.10.2005 WHICH WAS PROCESSED U/S . 143(1) ON04.05.2006. IT IS ALSO NOT THE CASE THAT A NOTICE U/S. 153A WAS ISSUED WITHIN 12 MONTHS FROM THE DATE OF FILING OF THE RETURN U/S. 139, BECAUSE THE NOTICE U/S . 153A WAS ISSUED ON SO '' OF MAY, 2008 AND IN COMPLIANCE A RETURN WAS FILED BY THE ASSESSEE DECLARING THE SAME INCOME AS IT WAS ORIGINALLY DECLARED. 4 ITA NO. 363/NAG/2016 . FAC T S O F THE CASE HAVE FURTHER REVEALED THAT THE AS SESSM ENT YEAR UNDER CONSIDERATION WAS N O T THE YEAR WHI CH ABATED UNDER ANY O F THE PROVI SIONS OF LAW. RE V ENUE H A S NO T DEMO N STRATED THAT FOR THE YEAR UNDER CONSIDE RATI ON I . E . ASSESSMENT YEAR 2 00 5 - 06 AN Y P R OCEED I NG S W ERE PENDING O R THE PROCEEDINGS O F THE ASSESSMEN T YE AR W ERE Y ET T O BE FINALIZED . I N THE LIGHT OF THE ABOVE ADMITTED FACTUAL POSITI O N WE HAVE C AREF U LL Y PERUSED THE ORDER O F H ON ' B LE JURISDIC TI ON AL H IGH CO URT PR O N O UNCED I N T H E C ASE O F C I T VS. C ONTINEN TA L WA R E H OU SING CO RP O RATI ON 1 20 D TR 89 (BOM . ) WH ERE IN T H E H ON ' B LE C O URT HAS HELD THAT IN RESPE C T OF NON ABATE D ASSESSMENTS THE ASSESSMENT WILL BE MADE ON T HE BA SIS O F B OO KS O F ACCOUNTS OR OTHER DOCUMENT N O T PRODUCED IN THE C O URSE O F O RIGINAL ASSESSMENT BUT F OUND IN THE COU RS E O F SEAR CH O R UNDISCLOSED INC O ME DISC OV ERE D I N THE COU RSE O F S E ARC H . THE CO URT HAS FURTHER CLARIFIE D T HAT T H E S CO PE O F THE INITIATION OF PROCEEDINGS U /S . 15 3 A IS TO ASSESS OR REASSESS PROCEEDINGS PENDING ON THE DATE O F CONDU CTING T H E SEAR C H U / S. 132 O R MAKING REQUISITI ON U / S . 132 A T H AT H AS ABATED A N D NO T THE ASSESSMENTS / R E ASSESSME N TS ALREAD Y FI N ALIZ ED F O R THO SE ASSESSM E N T Y EARS C OV ERED U / S. 153A . THIS DE C ISI O N BEIN G A N ORD ER O F JURISDICTI O NAL HIGH COURT, HENCE BINDING UPON US . AS FAR AS THE DE C ISIONS CI TED FR O M THE SIDE O F THE REVENUE ARE CO N C ER N E D , THE LEGAL PR O POSITION IS T H E SAME AS HELD I N THE C ASE O F ALL C ARG O GLOBAL L O GISTICS LT D . V S. DC I T 23 TA X MANN. C O M 1 03 (MUM B AI (S . B.) THA T T H E S CO PE O F A S SESSM E N T U / S. 153A IS CONFINED TO THE INCRI M INATING MATERIA L O R BOOKS O F ACCOUNTS UNEARTHED DURING THE COURSE OF SEARCH WH ICH W ERE NO T PR O DUCED IN THE C O URSE OF ORIGINAL AS SESSME N T A ND T H AT THE ASSESSMENT PR OC EEDINGS ARE NOT F IN ALIZED. E V E N I N THE CASE O F FILATE X INDIA LTD. 49 T A XM ANN . C O M 4 6 5 (DEL . ) AND OBSER V ATI ON WAS MADE THAT THE ADDITION U/S 153A IS REQUIRED TO BE RESTRICTED TO T H E INC RI M I NA TI NG MA TERIAL F OU ND DURING THE COU RSE O F S EAR CH . ' ( E M PH ASI S SUPP LI E D). IN TH E ABOVE CITED CASE , THE HON' BLE ITAT, NAGPUR DECIDED I N A SSESSEE'S FAVOUR FOLLOWING THE DECISION OF HON ' B L E JURISDICTI O NAL HIGH COURT I N THE CASE OF CONTINENTAL WAREHOUS I NG CORPORATION. THE ASSESSMENT WAS TREATED AS C O MPLETED SINCE NOTICE U/S . 153A WAS I S SUED BEYOND 12 M O NTHS FROM THE DATE OF FILING OF RETURN U/S. 139. T H E DATE FOR ISSUE OF NOTICE U/S. 143 ( 2) HAD EXPIRE D AND THEREFORE , THE ASSESSMENT WAS TREATED AS COMPLETE D AS ON THE DATE OF ISSUE OF NOTICE U/S. 153A . 18. VARIO U S TRIBUNALS AND HIGH COURTS HAVE HE L D THAT THE A S S ES SMENTS WHICH HAVE ALREADY CONCLUDED, WITHOUT AN Y I N C R IMINATING MATERIAL BEING FOUND DURING THE SEARCH , THE ADDITIONS MADE BY AO IN ASSESSMENTS P R O CEE DI NGS U / S 153A DO NO T SURVIVE AND THEREFORE ORDERED TO BE DELETED. IN CASE WHERE ASSESSMENT OR REASSESSMENT PROCEEDINGS HAVE ALREADY BEEN COMPLETED AND ASSESSMENT ORDERS HAVE BEEN PASSED DETERMINING ASSESSEES TOTAL INCOME AND SUCH ORDERS SUBSISTI NG AT THE TIME WHEN THE SEARCH OR THE REQUISITION IS MADE, THERE IS NO QUESTION OF ANY ABATEMENT SINCE NO PROCEEDINGS ARE PENDING. THE AO HAS STATED AS UNDER I N HIS REPORT DATED 1 0 . 12 . 20 15 F O R THE AGRAWA1 GROUP OF CASES : 5 ITA NO. 363/NAG/2016 . ' AS R EGARDS THE C A SES IN WHICH THE A S SES S MEN TS WE R E A B A TED A S A RESULT O F SEARCH U / S 1 32 A N D NO TI CE U I S 153A O R 153C , IT IS T O INF O RM THAT AS PE R TH E RECORDS , E X C E P T I N THE C ASE OF M I S SH REE AGARWAL FINANCE IND I A PV T. LTD . F O R THE A . Y . 2 009 - 1 0 , THER E IS N O CASE IN WH I C H A SSESSME N T WA S S O A BATED . IT IS ALSO SUBM IT T E D THAT I N F O LL OW I NG CA S E S T HE A S S E S SM E N TS WERE D O NE U/S 14 3 ( 3 ) O F T H E A C T , P R I O R T O T HE S E A RCH - 1. M I S S H R E E A G RAWAL CO AL INDIA P VT . LTD. A. Y. 2 0 05 - 0 6 , 2006 - 0 7 , 2 0 07 - 08 & 2008 - 0 9 . 2. SH RI D A RPAN DHA R A M P AL AGRAWAL : A . Y. 2008 - 09 '. FROM THE AO'S REPORT, IT IS SEEN THAT THERE WAS NO ASSESSMENT PENDING IN THIS CASE AND THE ASSESSMENT WAS NOT ABATED . THE TIME FOR ISSUE OF NOTICE U/S 143(2) HAD EXPIRED AS ON THE DATE OF ISSUE OF NOTICE U/S. 153A AND THEREFORE THE ASSESSMENT HAD BECOME FINAL IN VIEW OF LTAT NAGPUR DECISION REFERRED ABOVE IN THE CASE OF LATE SHRI SHAKTIKUMAR SANCHETI. ' - 19 . C ON SID ERIN G THE DECISIONS DISCUSSED AB O VE AND REL YING UP O N T H E D ECIS I ON OF HON ' B1E JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. CONTINENTAL WAREH O USING ( B O MBAY HIGH COURT) (APPEAL NO. 523 OF 2013) & C IT VS MURLI AGRO PRODUCTS LTD . ( NAGPUR BENCH O F B O MBAY H I GH C O URT ) . ( APPEAL NO . 36 OF 2 00 9 ) AND HON'B LE I T A T D ECISI O N IN THE C ASE OF LATE SHRI SHA KTIK UM AR SANCH E T I, THE 'ADDITIONAL GROUND ' RAISED BY THE ASSESSEE IS ALLOWED. 20. THE AO HAS MADE THE FOLLOWING ADDITIONS IN THE ASSESSMENT ORDER : I) EXCESS LEGAL FEES RS. 15,000/ - II) DEDUCTION ON ACCOUNT OF SHORTAGES DISALLOWED. RS. 46,675/ - III) UNSECURED LOANS TREATED UNEXPLAINED. RS. 21,85,616/ - IV) TRADE CREDITORS TREATED UNEXPLAINED RS. 15,09,377/ - V) LAND ALLOTMENT FEES TREATED AS CAPITAL EXPENDITURE. RS. 5,000/ - VI) PAYMENT TO CENTRAL WARE HOUSING CORPON. DISALLOWED U/S 40A(3) RS. 47,471/ - VII) PURCHASES FROM SISTER CONCERN DISALLOWED U/S 40A(2)(B) RS. 4,83,000/ - VIII) DISALLOWANCE OF DEDUCTION U/S 24(A) RS. 30,907/ - 6 ITA NO. 363/NAG/2016 . NO REFERENCE WHATSOEVER OF ANY SEIZED MATERIAL OR FINDINGS OF SEARCH U/S. 132 HAS BEEN MADE BY THE AO WHILE MAKING THE ABOVE ADDITIONS. IN VIEW OF THE ALLOWANCE OF ADDITIONAL GROUND TAKEN BY THE ASSESSEE, ALL THE ADDITIONS MADE BY THE AO ARE ORDERED TO BE DELETED. THE AO IS ACCORDINGLY DIRECTED. NO DISCUSSION ON THE MERITS OF THE ADDITIONS MADE BY THE AO IS WARRANTED. 4. AGAINST THE ABOVE ORDER, REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. IT IS UNDISPUTED THAT THE ADDITION IN THIS CASE HAS BEEN MADE WITHOUT REFERENCE TO ANY MATERIAL FOUND IN SEARCH. IT IS ALSO UNDISPUTED THAT THE ASSESSEE HAD EARLIER FILED THE RETURN OF INCOME AND THE SAME WAS PROCESSED U/S 143(1). THE LEARNED CIT(APPEALS) HAD CLEARLY GIVEN A FINDING THAT THE CASE LAWS FROM HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF CONTINENTAL WARE HOUSING (SUPRA) ARE SQUARELY APPLICABLE IN THIS CASE. IN THE SAID CASE REPORTED IN 120 DTR 89 THE HONBLE HIGH COURT HAD HELD THAT IN RESPECT OF NON ABATED ASSESSMENT, THE ASSESSMENT WILL BE MADE ON THE BASIS OF BOOKS OF ACCO UNTS OR OTHER DOCUMENTS NOT PRODUCED IN THE COURSE OF ORIGINAL ASSESSMENT BUT FOUND IN THE COURSE OF SEARCH OR UNDISCLOSED INCOME DISCOVERED IN THE COURSE OF SEARCH. 6. WE FURTHER FIND THAT HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. GURINDER SINGH BAWA IN INCOME TAX APPEAL NO. 1839 OF 2013 VIDE ORDER DATED 05 - 10 - 2015 IN A CASE WHERE RETURN OF INCOME FILED BY THE ASSESSEE WAS PROCESSED U/S 143(1) HAS ALSO UPHELD THE DECISION OF CONTINENTAL WAREHOUSING CORPORATION (SUPRA). HENCE WE DO NOT FIN D ANY INFIRMITY IN THE ORDER OF LEARNED CIT(APPEALS). ACCORDINGLY WE UPHOLD THE SAME. 7. SINCE WE HAVE ALREADY DIS MISSED THE APPEAL ON INVALID JURISDICTION, ADJUDICATION ON MERITS OF ISSUES RAISED IS ONLY OF ACADEMIC INTEREST. HENCE WE ARE NOT DEALING WITH THE ADDITION ON MERITS 7 ITA NO. 363/NAG/2016 . 8 . IN THE RESULT, THIS APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF DEC., 2016. SD/ - SD/ - (RAM LAL NEGI) ( SHAMIM YAHYA) JUDICIAL MEMBER. ACOUNTANT MEMBER. NAGPUR, DATED: 19 TH DEC. , 2016. COPY FORWARDED TO : 1. M/S SHREE AGRAWAL OIL INDUSTRIES PVT. LTD., 216, DEVIKRIPA SOCIETY, WARDHAMAN NAGAR, NAGPUR - 440008. 2. D.C.I.T., CENTRAL CIRCLE - 2(2), NAGPUR. 3. C.I.T. - (CENTAL), NAGPUR. 4. CIT(APPEALS), - 3, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. WAKODE.