Dy. Commissioner of Income Tax-4, Kanpur V. Smt. Meenakshi Agarwal Legal heir of Late Shri Mukesh Kumar Agarwal, Kanpur

ITA 430/LKW/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1068 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 22-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Document seized; Opportunity of being heard; Block assessment; Documents seized
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 430 TO 433/LKW/2016 ASSESSMENT YEAR: 2008 - 09, 2010 - 11, 2011 - 12 & 2012 - 13 DY. CIT - 4 KANPUR V. SMT. MEENAKSHI AGARWAL L/H OF LATE SHRI MUKESH KUMAR AGARWAL 7/97 - D, TILAK NAGAR, KANPUR T AN /PAN : AFJPA4914P (APP ELL ANT) (RESPONDENT) C.O. NO. 9 TO 12/LKW/2017 [IN ITA NO. 430 TO 433/LKW/2016] ASSESSMENT YEAR: 2008 - 09, 2010 - 11, 2011 - 12 & 20 12 - 13 SMT. MEENAKSHI AGARWAL L/H OF LATE SHRI MUKESH KUMAR AGARWAL 7/97 - D, TILAK NAGAR, KANPUR V. DY. CIT - 4 KANPUR ( CROSS - OBJECTOR ) (RESPONDENT) DEPARTMENT BY: SHRI V. K. BORA, D.R. ASSESSEE BY: SHRI ASHISH JAISWAL, ADVOCATE DATE OF HEARIN G: 12 0 3 201 8 DATE OF PRONOUNCEMENT: 15 0 3 201 8 O R D E R PER BENCH : THESE APPEALS PREFERRED BY THE REVENUE AND CORRESPONDING CROSS OBJECTIONS BY THE ASSESSEE EMANATE FROM SEPARATE ORDERS PASSED BY THE LD. CIT(A) - II, KANPUR. ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 2 OF 11 2 . THE CRUX OF THE GRIEVANCE OF THE REVENUE IN ALL THE APPEALS IS AGAINST DELETION OF ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED CREDIT ENTRIES. 3 . THESE APPEALS AND CROSS OBJECTIONS WERE HEARD TOGETHER AND SINCE THE FACTS ARE SIMILAR AND THE GROUNDS ARE COMMON, T HEY ARE BEING DISPOSED OF IN THIS CONSOLIDATED ORDER. AS A MATTER OF CONVENIENCE, WE TAKE UP THE FACTS AS APPEARING IN ITA NO.430/LKW/2016. 4 . IN THIS CASE , ON PERUSAL OF THE SAVING BANK ACCOUNT STATEMENT OF THE ASSESSEE, IT WA S REVEALED THAT THERE ARE MAJOR CASH CREDIT ENTRIES IN THE BANK ACCOUNT OF THE ASSES SEE. VIDE ORDER SHEET ENTRY NO. 1, DATED 29 - 03 - 2014, THE ASSESSEE WAS SPECIFICALLY REQUIRED TO FURNISH THE DETAILS OF THESE ENTRIES. BUT THE ASSESSEE OFFERED NO EXPLANATION ABOUT THE NATURE AND SOURCE OF CREDITS IN THE BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. T HE DETAILS OF UNEXPLAINED CREDIT ENTRIES A S RECORDED IN THE ORDER OF THE ASSESSING OFFICER IS AS UNDER: - STANDARD CHARTERED BANK (A/C NO. 62210264985) & PNB A/C NO.0255 000109288194 5 . THUS, AN AMOUNT OF RS.46,35,148/ - WA S ADDED BACK TO THE INCOME OF THE ASSESSEE AS UNEXPLAINED CREDITS DURING THE YEAR UNDER CONSIDERATION. VIDE ORDER SHEET ENTRY DATED 30 - 03 - 2014, THE ASSESSEE WAS ASKED TO SHOW - CAUSE WHY THE SUM OF ALL THE UN EXPLAINED CREDITS IN THE BANK ACCOUNTS OF THE ASSESSEE BE NOT A DDED BACK AS UNDISCLOSED INCOME, I N RESPONSE TO WHICH ASSESSEE FILED REPLY. ON GOING THROUGH THE EXPLANATION FILED BY THE ASSESSEE, THE ASSESSING OFFICER C A ME TO THE CONCLUSION THAT THE ASSESSE E HAS NOT SATISFACTORILY EXPLAINED THE NATURE & SOURCE OF CREDITS IN ITS BANK ACCOUNT. THEREFORE, AN AMOUNT OF ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 3 OF 11 RS.46,35,148/ - WA S ADDED BACK TO THE INCOME OF THE ASSESSEE FO R THE YEAR UNDER CONSIDERATION. 6 . THE ASSESSEE THEREAFTER PREFERRED AN APPEAL BEFORE THE LD. CIT(A) AND BEFORE THE LD. CIT(A) ASSESSEE FILED WRITTEN SUBMISSION, WHICH IS REPRODUCED AS UNDER: - T HE ASSESSEE IS AN INDIVIDUAL IN STATUS BEING REGULAR INCOME - TAX PAYER, IS A DIRECTOR JUHI ALLOYS LTD., RIMJHIM ISPAT LTD, AND M/S. BAJAJ STEELS & INDUSTRIES LTD.. THE ASSESSEE IS ALSO DRAWING INCOME FROM PLYING OF TRUCK. ALL THE COMPANIES IN WHICH ASSESSEE IS A DIRECTOR ARE INDULGES IN MANUFACTURING AND SALE OF IRON AND STEEL IN WHOLE SALE. THE ASSESSEE BEING DIRECTOR OF THESE COMPANIES AND ALSO A G RADUATE IN ENGINEERING HAVE A VAST EXPERIENCE IN ESTABLISHING/INSTALLING OF INDUSTRIES PLANT AND MACHINERY ALL THE ABOVE INDUSTRIES HAS BEEN INSTALLED WITH THE TECHNICAL KNOWLEDGE/EXPERIENCE OF SHRI MUKESH KUMAR AGARWAL THEREFORE HE USED TO PURCHASE PARTS OF THE MACHINERY WHERE IT IS AVAILABLE. IN THIS WAY HE WAS IN NEED OF SOME OLD MACHINERY TO BE UTILIZED BY INDUSTRY HELD UNDER THE NAME AND STYLE OF M/S. BAJAJ STEELS & INDUSTRIES LTD., WHEREIN THE ASSESSEE IS ONE OF THE DIRECTORS OF THE COMPANY. ON 29 - 12 - 2011 HE WAS ON THE WAY TO MANDI GOBINDGARH FOR PURCHASE OF OLD MACHINERY WITH A SUM OF CASH IN HAND AT RS. 4 LACS. IN THE BEGINNING OF JANUARY, 2012 STATE ASSEMBLY ELECTION WERE TO BE HELD IN PUNJAB. ELECTION COMMISSION HAD ISSUED INSTRUCTION THAT IF CASH MORE THAN 2.5 LACS WAS FOUND FROM ANY PERSON THE SAME MAY BE SEIZED AND ENQUIRY MADE WHETHER CASH WAS FOR DISTRIBUTION AMONG THE VOTERS, THE ASSESSEE WAS STOPPED BY THE PUNJAB POLICE ON BORDER OF U.P & PUNJAB AS CASH OF RS. 4 LACS WAS FOUND AND THIS AMOUNT WAS SEIZED AND HIS STATEMENT WAS RECORDED BY THE JCIT(OSD)(INV) ON 13 - 01 - 2013. BEFORE THE JCIT(OSD)(INV) ASSESSEE MADE A CATEGORICALLY STATEMENT THAT THIS MONEY BELONGS TO M/S. BAJAJ STEELS & INDUSTRIES LTD. VIDE REPLY TO QUERY NO. 3 & 4 HE CATEGORICALLY STATED THAT THE PURPOSE OF BEING CASH IN HAND AND ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 4 OF 11 SIMULTANEOUSLY HE FURNISHED THE ITR OF M/S. BAJAJ STEELS & INDUSTRIES LTD., COPY OF PAN CARD, COPY OF ABSTRACT OF CASH IN HAND IN THE HANDS OF COMPANY AS ON 27 - 12 - 2011. THE CASH - IN - HAND ON THIS DAY WAS AT R S. 865583.63. THE ABSTRACT OF CASH BOOK CLEARLY STATED THAT THE PAYMENT WAS MADE TO THE DIRECTOR AGAINST PAYMENT VOUCHER NO. 406. THE ASSESSEE HAS ALSO FURNISHED COPY OF VOUCHER AS WELL AS COPY OF LEDGER ACCOUNT IN THE BOOKS OF BAJAJ STEELS & INDUSTRIES LT D. ALL THE SUPPORTING DOCUMENTS WERE PRODUCED BEFORE THE ABOVE AUTHORITY. THAT THE ASSESSEE HAS FILED HIS RETURN OF INCOME FOR THE A.Y 2011 - 12 FOR RELEVANT YEAR DISCLOSING INCOME OF RS. 2780500/ - . IT IS SUBMITTED THAT REQUISITION U/S 132 WAS MADE ON 29/12/ 2011 BY HANDLING OVER CASH OF RS. 4 LACS TO THE AUTHORIZED OFFICER U/S 131(1A) OF THE I.T ACT. THE INVESTIGATION WAS FALLING IN F.Y 11 - 12 RELEVANT TO A.Y 2012 - 13. LATER ON THE A.O ISSUED NOTICE U/S 153A OF THE I.T ACT FOR A.Y 2006 - 07 TO 2012 - 13. THAT VIDE THE IMPUGNED ASSESSMENT ORDER NO ADDITION HAS BEEN MADE ON THIS GROUND BY THE ID. A.O AND THE SUBMISSIONS GIVEN BY APPELLANT ARE ACCEPTED. NO ADDITION HAS BEEN MADE IN THE HANDS OF THE COMPANY STYLED M/S. BAJAJ STEELS & INDUSTRIES LTD. TO WHOM THE CASH BEL ONGS. SOURCE OF RS. 4 LACS HAS BEEN ACCEPTED IN THE HANDS OF ASSESSEE AS NO ADDITION WAS MADE IN THE HANDS OF ASSESSEE. FURTHER IT HAS BEEN HELD BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF PREMIER CAR SALES LTD., VS. DGIT (INV) [2013] 40 TAXMANN.COM 19 (ALLAHABAD) THAT WHERE THE SEIZE THE AMOUNT BELONGS TO COMPANY AND NOT TO EMPLOYEE/AGENT OF COMPANY, THE ASSESSMENT PROCEEDING U/S 153A AGAINST THE LATTER CANNOT BE MADE. IN VIEW OF THE ABOVE FACTS AND CASE LAW RELIED UPON THE ASSESSMENT PROCEEDING INITIA TED AND ORDER PASSED U/S 153A/143(3) OF THE I.T. ACT IS ITSELF IS ILLEGAL AND UNWARRANTED. ALTERNATIVELY APPELLANT SUBMITTED THE DETAILS OF BANK ENTRIES AS BELOW: STANDARD CHARTERED BANK (A/C NO. 62210264985 ) ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 5 OF 11 SI. NO. DATE AMOUNT REMARK 1 27 - 04 - 2007 16,372.00 CLG. 2 07 - 05 - 2007 40,000.00 CASH DEPOSIT 3 14 - 06 - 2007 560.26 INTT. RECEIVED 4 10 - 08 - 2007 3,30,050.00 FROM JAL 5 10 - 08 - 2007 3,60,640.00 SALARY RIL 6 10 - 08 - 2007 6,42,180.00 FROM JAL 7 10 - 08 - 2007 8,42,180.00 RE CD. FR OM RIL 8 01 - 09 - 2007 82,512.00 SALARY JAL 9 01 - 09 - 2007 90,160.00 SALARY RIL 10 03 - 10 - 2007 82,512.00 SALARY JAL 11 03 - 10 - 2007 90,160.00 SALARY RIL 12 16 - 10 - 2007 21,700.00 13 03 - 11 - 2007 1,72,672.00 SALARY RIL & JAL 14 20 - 11 - 2 007 90.00 15 11 - 12 - 2007 82,512.00 SALARY JAL 16 11 - 12 - 2007 90,160.00 SALARY RIL 17 11 - 01 - 2008 82,512.00 SALARY JAL 18 11 - 01 - 2008 90,160.00 SALARY RIL 19 01 - 02 - 2008 90,160.00 SALARY RIL 20 02 - 02 - 2008 82,512.00 SALARY JAL 2 1 27 - 03 - 2008 1,72,672.00 SALARY RIL & JAL 22 31 - 03 - 2008 1,72,672.00 SALARY RIL & JAL PUNJAB NATIONAL BANK (A/C NO. 02550001092881941 ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 6 OF 11 SI. NO. DATE AMOUNT REMARK 1 31 - 12 - 2007 10,00,000.00 RE CD. FROM RIL 7 . THE LD. CIT(A), AFTER CONSIDERING THE ASSESSMENT ORDER AND THE SUBMISSIONS OF THE ASSESSEE, HELD AS FOLLOWS: - NOW TAKING THE MERITS OF THE CASE INTO CONSIDERATION, HON'BLE J URISDICTIONAL HI GH COURT OF ALLAHABAD IN THE CASE OF PREMIER CAR SALES LTD. V. DIRECTOR GENERAL OF INCOME - TAX, INVES TIGATION (NORTH) [2013] 40 TAXMANN.COM 19 (ALL) HELD - WHETHER WHERE NO PROCEEDING UNDER SECTION 153A WAS INITIATED AGAINST PETITIONER - COMPANY, AND FURTHER SEIZED AMOUNT BELONGED TO PETITIONER - COMPANY, NOT TO EMPLOYEE/AGENT OF COMPANY, BLOCK ASSESSMENT AGAI NST COLLECTING AGENT, WAS TO BE SET ASIDE - HELD, YES. IT APPEARS THAT THE CASH WAS SEIZED FROM THE POSSESSION OF THE APPELLANT WHO SUBMITTED DURING THE SEARCH PROCEEDINGS THAT THE AMOUNT BELONGS TO THE COMPANY AND NOT TO THE APPELLANT, WHO IS MERELY AN EM PLOYEE OF THE COMPANY. THIS EXPLANATION WAS ACCEPTED BY THE AO AND NO ADDITION WAS MADE EITHER IN THE HANDS OF APPELLANT. SOURCE OF CASH WAS ALSO FOUND EXPLAINED IN THE HANDS OF THE COMPANY M/S. BAJAJ STEELS & INDUSTRIES LTD., KANPUR. SO, THERE WAS NO OCCA SION TO START THE PROCEEDINGS UNDER 'SECTION 153A AGAINST THE APPELLANT WHO IS SIMPLY AN AGENT OF THE COMPANY. RESPECTFULLY FOLLOWING THE RULING OF HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF PREMIER CAR SALES LTD. V. DIRECTOR GENERAL OF INCOME - TAX, INVEST IGATION (NORTH) (SUPRA) I AM OF THE VIEW THAT THE PROCEEDINGS FOR THE BLOCK PERIOD WERE NOT REQUIRED TO BE INITIATED IN THE CASE OF THE APPELLANT ESPECIALLY WHEN NO SUCH PROCEEDINGS WERE INITIATED AGAINST THE COMPANY. MOREOVER ON THE DATE OF ISSUING OF NOT ICE U/S 153A OF THE ACT BY AO FOR THESE SIX YEARS, NO ASSESSMENTS OF THE ASSESSEE WERE PENDING AND NO ASSESSMENTS WERE ABETTED. IN SUCH A SITUATION AO ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 7 OF 11 COULD ONLY ASSESS OR REASSESS THE INCOME OF THE ASSESSEE ON THE BASIS OF ONLY SEIZED DOCUMENTS AND NOT OT HERWISE AS PER THE SETTLED LEGAL POSITION. IN THE PRESENT CASE NO SUCH INCRIMINATING DOCUMENT WAS FOUND DURING THE SEARCH OPERATION BY POLICE IN PUNJAB THAT COULD WARRANT THE ADDITIONS ON ACCOUNT OF UNEXPLAINED BANK ENTRIES AND THAT TOO WITHOUT GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. MOREOVER THE ENTRIES NOW STAND EXPLAINED IN LIGHT OF THE INFORMATION RECEIVED FROM THE BANK AND ALSO SUBMITTED BY THE APPELLANT. LEGAL POSITION HAS BEEN SUMMARIZED IN A RECENT JUDGEMENT OF HON'BLE DELHI HI GH COURT IN THE CASE OF CIT (CENTRAL) - III V. KABUL CHAWLA IN ITA 707/2014 (DEL) DECIDED ON DECIDED ON AUGUST 28, 2015 HELD: 'SUMMARY OF THE LEGAL POSITION '37. ON A CONSPECTUS OF SECTION 153A(1) OF THE ACT, READ WITH THE PROVISOS THERETO, AND IN THE LIGHT OF THE LAW EXPLAINED IN THE AFOREMENTIONED DECISIONS, THE LEGAL POSITION THAT EMERGES IS AS UNDER: I. ONCE A SEARCH TAKES PLACE UNDER SECTION 132 OF THE ACT, NOTICE UNDER SECTION 153 A (1) WILL HAVE TO BE MANDATORILY ISSUED TO THE PERSON SEARCHED R EQUIRING HIM TO FILE RETURNS FOR SIX AYS IMMEDIATELY PRECEDING THE PREVIOUS YEAR RELEVANT TO THE AY IN WHICH THE SEARCH TAKES PLACE. II. ASSESSMENTS AND REASSESSMENTS PENDING ON THE DATE OF THE SEARCH SHALL ABATE. 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 INC OME' 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 ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 8 OF 11 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 AVAILABLE WITH THE AO WHICH CAN BE RELATED TO THE EVIDENC E FOUND, IT DOES NOT MEAN THAT THE ASSESSMENT 'CAN BE ARBITRARY OR MADE WITHOUT ANY RELEVANCE OR NEXUS WITH THE SEIZED MATERIAL. OBVIOUSLY AN ASSESSMENT HAS TO BE MADE UNDER THIS SECTION ONLY ON THE BASIS OF SEIZED MATERIAL.' V. IN ABSENCE OF ANY IN CRIMINATING MATERIAL, THE COMPLETED ASSESSMENT CAN BE REITERATED AND THE ABATED ASSESSMENT OR REASSESSMENT CAN BE MADE. THE WORD 'ASSESS' IN SECTION 153 A IS RELATABLE TO ABATED PROCEEDINGS (I.E. THOSE PENDING ON THE DATE OF SEARCH) AND THE WORD 'REASSESS' TO COMPLETED ASSESSMENT PROCEEDINGS. VI. INSOFAR AS PENDING ASSESSMENTS ARE CONCERNED, THE JURISDICTION TO MAKE THE ORIGINAL ASSESSMENT AND THE ASSESSMENT UNDER SECTION 153A MERGES INTO ONE. ONLY ONE ASSESSMENT SHALL BE MADE SEPARATELY FOR EACH AY O N THE BASIS OF THE FINDINGS OF THE SEARCH AND ANY OTHER MATERIAL EXISTING OR BROUGHT ON THE RECORD OF THE AO. VII. COMPLETED ASSESSMENTS CAN BE INTERFERED WITH BY THE AO WHILE MAKING THE ASSESSMENT UNDER SECTION 153 A ONLY ON THE BASIS OF SOME INCRIMI NATING MATERIAL UNEARTHED DURING THE COURSE OF SEARCH OR REQUISITION OF DOCUMENTS OR UNDISCLOSED INCOME OR PROPERTY DISCOVERED IN THE COURSE OF SEARCH WHICH WERE NOT PRODUCED OR NOT ALREADY DISCLOSED OR MADE KNOWN IN THE COURSE OF ORIGINAL ASSESSMENT. '38 . THE PRESENT APPEALS CONCERN AYS, 2002 - 03, 2005 - 06 AND 2006 - 07.ON THE DATE OF THE SEARCH THE SAID ASSESSMENTS ALREADY STOOD COMPLETED. SINCE NO INCRIMINATING MATERIAL WAS UNEARTHED ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 9 OF 11 DURING THE SEARCH, NO ADDITIONS COULD HAVE BEEN MADE TO THE INCOME ALREADY ASSESSED. '39. THE QUESTION FRAMED BY THE COURT IS ANSWERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE, 40. THE APPEALS ARE ACCORDINGLY DISMISSED BUT IN THE CIRCUMSTANCES NO ORDERS AS TO COSTS.' AFTER CAREFUL CONSIDERATION OF SUBMISSIONS AND RECORD S PRODUCED BEFORE ME, I AM OF THE VIEW THAT A.O. WAS NOT JUSTIFIED TO TREAT THE CREDIT ENTRIES APPEARING IN THE BANK ACCOUNT AS UNEXPLAINED CASH CREDITS ON ANY GROUND. SINCE THERE WERE NO PENDING ASSESSMENTS AT THE TIME OF ISSUANCE OF NOTICE U/S 153A OF TH E ACT, COMPLETED ASSESSMENTS COULD NOT BE INTERFERED WITH BY THE AO WHILE MAKING THE ASSESSMENT UNDER SECTION 153A WITHOUT ANY INCRIMINATING MATERIAL UNEARTHED DURING THE COURSE OF SEARCH. ASSESSMENT CANNOT BE ARBITRARY OR MADE WITHOUT ANY RELEVANCE OR NEX US WITH THE SEIZED MATERIAL. OBVIOUSLY AN ASSESSMENT HAS TO BE MADE UNDER THESE CIRCUMSTANCES ONLY ON THE BASIS OF SEIZED MATERIAL. CASH FOUND DURING THE SEARCH WAS PROPERLY EXPLAINED IN THE HANDS OF THE COMPANY TO WHICH THE CASH BELONGED AND THERE WAS NO OTHER INCRIMINATING DOCUMENTS FOUND DURING SEARCH RELATED TO THE BANK ENTRIES, THE ADDITION MADE BY THE AO ARE TO BE DELETED, IN VIEW OF THE JUDGMENTS OF PREMIER CAR SALES LTD. V. DIRECTOR GENERAL OF INCOME - TAX, INVESTIGATION (NORTH) [2013] 40 TAXMANN.COM 19 (ALL); AND CIT (CENTRAL) - III V. KABUL CHAWLA IN ITA 707/2014 (DEL). APPELLANT GETS RELIEF ON THESE GROUNDS. 8 . WE HAVE PERUSED THE CASE RECORDS, ANALYSED THE FACTS AND CIRCUMSTANCES OF THE CASE AND HAVE CONSIDERED THE JUDICIAL PRONOUNCEMENTS REFERRED BE FORE US. WE FIND FROM THE RECORD THAT FOLLOWING TWO DECISIONS HAVE BEEN RELIED UPON BY THE ASSESSEE: - ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 10 OF 11 ( 1 ) PREMIER CAR SALES LTD., VS. DGIT (INV) [2013] 40 TAXMANN.COM 19 (ALLAHABAD) . ( 2 ) HON'BLE DELHI HIGH COURT IN THE CASE OF CIT ( CENTRAL ) - III V. KABUL CHAWLA IN ITA 707/2014 (DEL) 9 . THE LD. CIT(A) HAS ANALYSED THE FACTS OF THE CASE IN THE LIGHT OF THE ABOVE JUDICIAL PRONOUNCEMENTS AND WE FIND THAT IN THE PRESENT CASE THERE WAS NO PENDING ASSESSMENT AT THE TIME OF ISSUANCE OF NOTICE UNDER SECTION 153A OF THE ACT. C OMPLETED ASSESSMENT COULD NOT BE INTERFERED WITH BY THE ASSESSING OFFICER WHILE MAKING THE ASSESSMENT UNDER SECTION 153A WITHOUT ANY INCRIMINATING MATERIAL UNEARTHED DURING THE COURSE OF SEARCH . THIS IS CLEARLY LAID DOWN IN KABUL CHAWLA S (SUPRA) CASE. S IMILARLY , ASSESSMENT CANNOT BE ARBITRARY OR MADE WITHOUT ANY RELEVANCE OR NEXUS WITH THE SEIZED MATERIAL. THE ASSESSMENT HAS TO BE MADE UNDER THIS S ECTION ONLY O N THE BASIS OF SEIZED MATERIAL. THE CASH FOUND DURING THE SEARCH WAS PROPERLY EXPLAINED IN THE HANDS OF THE COMPANY TO WHICH CASH BELONGED AND THERE WAS NO OTHER INCRIMINATING DOCUMENT FOUND DURING SEARCH RELATED TO THE BANK ENTRIES. WE ARE OF THE CONSIDERED VIEW THAT ON THESE FINDINGS RELIEF WAS GIVEN TO THE ASSESSEE BY THE LD. CIT(A) AND WE DO N OT FIND ANY INFIRMITY IN HIS ORDER AND THE RELIEF GRANTED TO THE ASSESSEE IS, THEREFORE, SUSTAINED. RELYING U PON THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CIT (CENTRAL) - III V. KABUL CHAWLA (SUPRA), WE UPHOLD THE ORDER PASSED BY THE LD. CIT(A ). 10 . SIMILARLY, IN ALL OTHER APPEALS NO.431, 432 & 433/LKW/2016, THE RELIEF GRANTED BY THE LD. CIT(A) TO THE ASSESSEE ARE SUSTAINED. 11 . IN THE RESULT, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. ITA NO.430 TO 433/LKW/2016 & C.O. NO. 9 TO 12/LKW/2017 PAGE 11 OF 11 12 . NOW WE TAKE UP THE CROSS OBJECTION S FILED BY THE ASSESSEE. THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE IN SUPPORT OF THE ORDERS PASSED BY THE LD. CIT(A). SINCE WE HAVE CONFIRMED THE ORDER OF THE LD. CIT(A) AND DISMISSED THE APPEALS FILED BY THE REVENUE, THE CROSS OBJECTIONS FILED BY THE ASSESSEE HA VE BECOME INFRUC TUOUS. 13 . IN THE RESULT, APPEALS OF THE REVENUE AND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 / 0 3 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH MAR CH , 201 8 JJ: 1203 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR