M/s Aerens Buildwell Ltd., New Delhi V. ACIT, New Delhi

ITA 5072/DEL/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9265 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 26-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOEL
• Keywords: Search and seizure; Share purchase agreement; Principle of natural justice; Additional evidence; Capital receipt; Documents seized
• Section: 143(3); 133A; 153A; 234B; 131; 68; 132

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BENCH, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 5072/DEL/2016 [ASSESSMENT YEAR: 2007-08] AERENS BUILDWELL LTD., VS. ACIT, C C-18, C/O BGJC & ASSOCIATES, NEW DELHI RAJ TOWER, G-1, ALAKHNANDA COMMUNITY CENTRE, NEW DELHI 110 019 (PAN: AACCA3045N) [APPELLANT] [RESPONDENT] ASSESSEE BY : SHRI VIVEK BANSAL, ADV . REVENUE BY : SHRI SANJAY GOEL, CIT( DR) ORDER PER H.S. SIDHU, JM THIS APPEAL FILED BY THE ASSESSEE IS PREFERRED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX [APPEALS]-25, NE W DELHI DATED 28.6.2016 RELATING TO ASSESSMENT YEAR 2007-08. THE ASSESSEE HAS FILED THE FOLLOWING REVISED GROUNDS:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN NO T FOLLOWING THE INSTRUCTION NO.20/2003 DATED 23-12-2003 ISSUED BY 2 CBDT REGARDING ISSUE OF APPELLATE ORDER WITHIN 15 D AYS OF LAST HEARING OF CASE. 2. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN REJECTING TH E GROUND RAISED BY THE ASSESSEE THAT THE LD AO HAS ERRED ON FACTS AND IN LAW IN MAKING AN ASSESSMENT U/S 153 A WITHOUT EX ECUTION OF PROPER SEARCH WARRANT U/S 132 OF THE INCOME TAX ACT, 1961. 3. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN REJECTING TH E GROUND RAISED BY THE ASSESSEE THAT IN ABSENCE OF INCRIMINA TING MATERIAL HAVING BEEN FOUND DURING THE COURSE OF SEA RCH, ADDITION COULD NOT HAVE BEEN MADE BY THE AO IN RESP ECT OF A COMPLETED ASSESSMENT. WHILE HOLDING SO HE HAS FAILE D TO APPRECIATE THAT:- A) THE IMPUGNED ASSESSMENT HAS BEEN MADE IN RESPECT OF A COMPLETED ASSESSMENT AS EARLIER ASSESSMENT ORDER FO R A.Y 2007-08 WAS PASSED U/S 143(3) ON 08-12-2009 AND IT WAS NOT AN ABATED ASSESSMENT. B) THAT EVEN THE AO HAS NOT REFERRED TO ANY SEIZED MATERIAL (CONSTITUTING INCRIMINATING MATERIAL FOR M AKING IMPUGNED ADDITION) FOUND DURING THE COURSE OF SEARC H BASED UPON WHICH THE IMPUGNED ADDITION COULD BE MADE. 3 C) THAT EVEN LD.CIT(A) COULD NOT REFER OR PIN-POIN T TO ANY SEIZED MATERIAL (CONSTITUTING INCRIMINATING MATERIAL FOR M AKING IMPUGNED ADDITION) ON THE BASIS OF WHICH IMPUGNED A DDITION COULD BE MADE. THEREFORE, REJECTION OF THIS GROUND IS CONTRARY TO THE LAW LAID DOWN BY THE EXISTING DECISION OF HON'BLE JURISDICTI ONAL HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA (2016) 380 ITR 573 (DEL). 4. THAT UNDER FACTS AND CIRCUMSTANCE OF THE CASE LD .CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN HOLDING THAT REQ UEST OF THE APPELLANT TO FILE ADDITIONAL EVIDENCE UNDER RULE 46 A OF IT RULES IS NOT MAINTAINABLE. THE CRITERIA LAID DOWN IN RULE 46 A HAS BEEN SHOWN TO HAVE BEEN FULFILLED AND THE ADDITIONAL EVI DENCE SOUGHT TO BE FILED BY THE ASSESSEE WAS LIABLE TO BE ADMITTED. 4.1. WITHOUT PREJUDICE TO THE ABOVE, LD. CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN RELYING UPON THE ADDITIONAL EVID ENCE AFTER REJECTION OF THE SAME AS SUCH COURSE ADOPTED BY CIT(A) WOULD BE CONTRARY TO RULE OF NATURAL JUSTICE. 5. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD. CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN MAKIN G THE IMPUGNED ADDITION UNDER SECTION 68 OF THE INCOME TAX ACT, 19 61 BY TREATING SHARE CAPITAL AND SHARE PREMIUM RECEIVED AS UNEXPLA INED CREDIT AMOUNTING TO RS. 1,08,00,000/-. THE LEARNED CIT (A) HAS FAILED TO TAKE INTO CONSIDERATION THE REQUEST OF APPELLANT FO R EXAMINATION OF ALL RELEVANT FACTS BY THE LD. AO ON ITS OWN. 4 6. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH IN FACT IN PASSING THE ORD ER WITHOUT EXAMINATION OF FACTS EITHER BY HIMSELF OR BY THE LD . AO. 7. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN NOT APPRECIA TING THE FACT THAT IMPUGNED ADDITION MADE BY THE AO IS CONTRARY TO THE LAW OF NATURAL JUSTICE AS THE AO DID NOT ALLOW THE ASSESSEE WITH A N OPPORTUNITY TO CROSS EXAMINE EVIDENCES ON WHICH THE LD. AO HAS REL IED UPON. 8. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE LD.CIT(A) HAS ERRED IN LAW AS MUCH AS IN FACT IN NOT APPRECIA TING THAT THE PROVISIONS OF SECTION 234B ARE NOT APPLICABLE IN TH E CASE OF THE APPELLANT. 9. THAT EACH OF THE ABOVE GROUNDS IS INDEPENDENT AN D WITHOUT PREJUDICE TO EACH OTHER. 10.THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, M ODIFY WITHDRAW, AMEND, SUBSTITUTE ANY GROUND(S) OF APPEAL EITHER BE FORE OR AT THE TIME OF HEARING. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE COMPAN Y BELONGS TO THE AERENS GROUP. SEARCH & SEIZURE AND SURVEY OPERATION S UNDER SECTION 132 / 133A OF THE INCOME TAX ACT, 1961 WERE CONDUCTED O N 17.08.2011 IN THE CASE OF THE ASSESSEE COMPANY ALONGWITH OTHER CASES OF THE GROUP AT VARIOUS RESIDENTIAL & BUSINESS PREMISES. THE JURISD ICTION OVER THE ASSESSEE COMPANY WAS TRANSFERRED FROM THE ACIT, CIR CLE 1(1), NEW DELHI TO CENTRAL CIRCLE-9, NEW DELHI VIDE ORDER F.NO.CIT- I/CENTRALIZATION/2012- 5 13/3042 ISSUED BY THE OFFICE OF COMMISSIONER OF INC OME TAX, DELHI-I, NEW DELHI UNDER SECTION 127 OF THE ACT ON 06.03.13. RETURN DECLARING LOSS OF RS. 34,97,571/- WAS FILED. DURING THE COURS E OF THE SEARCH AO HAS FOUND THAT THE ASSEESEE COMPANY HAS SHOWN RECEIPT O F RS. 4,77,00,000/- AS SHARE CAPITAL AND SHARE PREMIUM IN F.Y. 06-07, 0 7-08 AND 08-09, RELEVANT FOR A.Y. 07-08, 08-09 AND 09-10. IN POST S EARCH ENQUIRES IT WAS ALSO FOUND THAT THE RECEIPT OF THE SHARE PREMIUM AN D SHARE CAPITAL SHOWN ARE FROM PERSONS (INCLUDING 6 COMPANIES AND 1 INDIVIDUAL, ALL OF WHICH WERE NOT TRACEABLE, NEITHER THE INDIVIDUAL CO ULD BE TRACED NOR THE COMPANIES WERE IN EXISTENCE AT THEIR REGISTERED OFF ICES). ON THE BASIS OF VARIOUS DOCUMENTS SEIZED, STATEMENTS RECORDED, ENQU IRIES CONDUCTED, INFORMATION GATHERED AND CONSIDERATION OF THE SUBMI SSIONS OF THE ASSESSEE COMPANY, IT WAS CONCLUDED BY THE ASSESSING OFFICER THAT THE SHARE CAPITAL (RS. 79,50,000/-) @ RS. 100/- PER SHA RE AND SHARE PREMIUM (RS.3,97,50,500/-) @ RS. 500/- PER SHARE WA S CLAIMED, WERE FROM BOGUS AND NON- EXISTING COMPANIES AND BOGUS RE CEIPTS HAS ALSO BEEN CLAIMED FROM THE INDIVIDUAL AND THAT THE ASSES SEE COMPANY HAD TAKEN THE SHELTER OF THESE PERSONS FOR ITS UNACCOUN TED MONEY. FOR THE INSTANT YEAR, ADDITION OF RS. 1,08,00,000/- (RS. 18 ,00,000/- AS SHARE CAPITAL PLUS RS.90,00,000/- AS SHARE PREMIUM), CLAI MED TO BE RECEIVED FROM 4 COMPANIES. AO MADE THE ADDITIONS AMOUNTING T O RS. 1,08,00,000- (RS. 18,00,000 AS SHARE CAPITAL PLUS RS. 90,00,000 /- AS SHARE PREMIUM) BY ASSESSING THE INCOME OF THE ASSESSEE AT RS. 1,42 ,97,570/- VIDE ORDER DATED 30.3.2014 PASSED U/S. 153A READ WITH SECTION 143(3) OF THE I.T. 6 ACT, 1961. AGAINST THE ACTION OF THE AO, ASSESSEE A PPEALED BEFORE THE LD. CIT(A), WHO VIDE HIS IMPUGNED ORDER DATED 28.6.2016 HAS DISMISSED THE APPEAL OF THE ASSESSEE. AGGRIEVED WITH THE IMPUGNED ORDER DATED 28.6.2016, ASSESSEE IS IN APPEAL BEFORE US. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE ADDITION IN DISPUTE HAS BEEN MADE IN RESPECT OF THE SHARE CAPITAL RECEIPT RECEIVED BY THE ASSESSEE WHICH WAS SUBSCRIBED BY T HE CORPORATE ENTITY EXCEPT (ONE INDIVIDUAL) AT PREMIUM. HE DRAW OUR AT TENTION TOWARDS THE DETAILS OF THE SAME. HE FURTHER STATED THAT THE ORIGINAL ASSESSMENT IN RESPECT OF EACH OF THE YEAR IN DISPUTE HAS BEEN C OMPLETED U/S. 153A/143(3) OF THE ACT ON 30.3.2014. THE ONLY ADDI TION MADE WITH REFERENCE TO THE SHARE CAPITAL AND SHARE PREMIUM RECEIVED IN THE RESPECTIVE ASSESSMENT YEAR WHICH FACT HAS ALREAD Y BEEN ACCEPTED IN THE ORIGINAL ASSESSMENT. HE FURTHER STATED THAT AT THE TIME OF SEARCH AND SEIZURE NO INCRIMINATING MATERIAL WAS FOUND INSPI TE OF THE FACT THAT THE AO HAD MADE THE ADDITION IN DISPUTE ON THE BASIS O F POST SEARCH ENQUIRY AND ON THE EVIDENCE ALREADY AVAILABLE ON RECORD WHI CH WAS PRODUCED BY THE ASSESSEE AT THE TIME OF FILING THE RETURN. HE DRAW OUR ATTENTION TOWARDS THE ORDER OF THE AO AT PAGE 3 AND STATED TH AT THE ADDITION HAS BEEN MADE ON THE BASIS OF THE MATERIAL ALREADY ON RECORD AND NOT ON THE BASIS OF ANY INCRIMINATING MATERIAL. IT IS ONLY FO R THE REASON OF MAKING ENQUIRIES AFTER THE CONDUCT OF SEARCH AND DURING TH E COURSE OF ASSESSMENT PROCEEDINGS CARRIED OUT IN PURSUANCE TO SECTION 153 A, THE AO FORMED AN OPINION EXPRESSING HIS DOUBT REGARDING GENUINENESS OF SHARE CAPITAL AND 7 CREDITWORTHINESS OF ENTITIES WHICH HAVE INVESTED SH ARE CAPITAL WITH THE ASSESSEE, THEREFORE, THE SAME HAS BEEN ADDED TO THE INCOME OF THE ASSESSEE. HE FURTHER SUBMITTED THAT THE ADDITION O THERWISE IS NOT MAINTAINABLE EVEN ON MERITS AS THERE EXISTS SUFFICI ENT DOCUMENTARY EVIDENCE TO PROVE THE GENUINENESS OF SHARE APPLICAT ION MONEY, IT IS ALSO THE CASE OF THE ASSESSEE THAT THESE ASSESSMENTS BEI NG COMPLETED ASSESSMENTS, ADDITION ON ACCOUNT SHARE APPLICATION MONEY COULD NOT BE MADE IN ABSENCE OF ANY INCRIMINATING MATERIAL HAVIN G BEEN FOUND DURING THE COURSE OF SEARCH. IN SUPPORT OF CONTENTION, HE FILED A PAPER BOOK CONTAINING PAGES 1 TO 335 IN WHICH HE HAS ATTACHED THE COPY OF VARIOUS DOCUMENTARY EVIDENCES WHICH WERE AVAILABLE BEFORE T HE AUTHORITIES BELOW I.E. SHOW CAUSE NOTICE U/S. 153A /143(2) DATED 19.1 1.2013; REPLY TO SHOW CAUSE NOTICE DATED 19.11.2013; ASSESSMENT ORDERS U/ S. 143(3) FOR AY 2007-08 TO 2009-10; ENTITY WISE AND ASSESSMENT YEAR WISE EVIDENCE OF SHARE CAPITAL AND SHARE PREMIUM (AY 2007-08) CONFIR MATION OF M/S PODDAR AIRCOM PVT. LTD.; APPLICATION FORM FOR EQUIT Y SHARES OF M/S PODDAR AIRCON PVT. LTD; MEMORANDUM AND ARTICLES OF ASSOCIA TION OF M/S PODDAR AIRCOM PVT. LTD; CERTIFICATE OF INCORPORATION OF M/ S PODDAR AIRCOM PVT. LTD; BOARD RESOLUTION OF M/S PODDAR AIRCOM PVT. LTD .;AUDITOR'S REPORT OF M/S PODDAR AIRCOM PVT. LTD WITH BALANCE SHEET & P&L A/C; SHARE CERTIFICATE M/S PODDAR AIRCOM PVT. LTD; M/S SARAOSI COMMERCIAL PVT. LTD.; CONFIRMATION OF M/S SARAOGI COMMERCIAL PVT. LTD. AP PLICATION FORM FOR EQUITY SHARES OF M/S SARAOGI COMMERCIAL PVT. LTD.; CERTIFICATE OF INCORPORATION OF M/S SARAOGI COMMERCIAL PVT. LTD.; CHEQUES ISSUED BY 8 M/S SARAOGI COMMERCIAL PVT. LTD. TO ASSESSEE LEDGER REPORT OF M/S SARAOGI COMMERCIAL PVT. LTD.; ACKNOWLEDGMENT OF E-R ETUM OF M/S SARAOGI COMMERCIAL PVT. LTD.; AUDITOR'S REPORT WITH BALANCE SHEET & P&L A/C OF M/S SARAOGI COMMERCIAL PVT. LTD.; SHARE CERTIFICATE OF M/S SARAOGI COMMERCIAL PVT. LTD.; M/S HOOSLV VINIMAY PVT. LTD.; CONFIRMATION BY M/S HOOGLY VINIMAY PVT. LTD.; COURIER DETAILS OF REPLY TO NOTICE U/S 131 OF M/S HOOGLY VINIMAY PVT. LTD.; FORM OF APPLICATION FOR E QUITY SHARES FOR M/S HOOGLY VINIMAY PVT. LTD.; TRANSACTION STATEMENT OF M/S HOOGLY VINIMAY PVT. LTD.; ITR FOR A.Y 2007-08 OF M/S HOOGLY VINIMA Y PVT. LTD.; DIRECTOR'S REPORT OF M/S HOOGLY VINIMAY PVT. LTD.; AUDITORS RE PORT OF M/S HOOGLY VINIMAY PVT. LTD. WITH BALANCE SHEET P& L A/C; CER TIFICATE OF REGISTRATION BY RBI OF M/S HOOGLY VINIMAY PVT. LTD.; MEMORANDUM & ARTICLES OF ASSOCIATION OF M/S HOOGLY VINIMAY PVT. LTD.; SHARE CERTIFICATE OF M/S HOOGLY VINIMAY PVT. LTD.; M/S NKP HOLDINGS PVT. LTD ; FURNISHING INFORMATION U/S 131 OF M/S NKP HOLDINGS PVT. LTD; C OURIER RECEIPT OF REPLY TO SECTION 131 NOTICE BY M/S NKP HOLDINGS PVT. LTD; TRANSACTION STATEMENT OF M/S NKP HOLDINGS PVT. LTD; FORM OF APP LICATION OF M/S NKP HOLDINGS PVT. LTD; MEMORANDUM AND ARTICLE OF ASSOCI ATION OF M/S NKP HOLDINGS PVT. LTD; CERTIFICATE OF REGISTRATION OF M /S NKP HOLDINGS PVT. LTD; CERTIFICATE OF INCORPORATION OF M/S NKP HOLDINGS PV T. LTD; COURIER DETAILS OF M/S NKP HOLDINGS PVT. LTD; ITR OF M/S NKP HOLDIN GS PVT. LTD FOR A.Y 2007-08; DIRECTORS REPORT OF M/S NKP HOLDINGS PVT. LTD; AUDITORS REPORT OF M/S NKP HOLDINGS PVT. LTD BALANCE SHEET AND P & L A /C; ACCOUNT STATEMENT OF M/S NKP HOLDINGS PVT. LTD; SHARE CERTI FICATE OF M/S NKP 9 HOLDINGS PVT. LTD; (ASSESSMENT YEAR 2008-09) M/S DI SHA MEDICAL SYSTEMS PVT. LTD.- APPLICATIONS OF SHARES BY M/S DI SHA MEDICAL SYSTEMS PVT. LTD.; AUDITORS REPORT OF M/S DISHA MEDICAL SYS TEMS PVT. LTD. WITH BALANCE SHEET AND P & L A/C; ACCOUNT STATEMENTS OF M/S DISHA MEDICAL SYSTEMS PVT. LTD.; CONFIRMATION OF ACCOUNTS OF M/S DISHA MEDICAL SYSTEMS PVT. LTD.; LETTERS OF ALLOTMENT OF SHARES T O M/S DISHA MEDICAL SYSTEMS PVT. LTD.; LIST OF ALLOTMENT OF SHARES TO M /S DISHA MEDICAL SYSTEMS PVT. LTD.; SHARE CERTIFICATE OF M/S DISHA M EDICAL SYSTEMS PVT. LTD.; MEMORANDUM AND ARTICLE MEDICAL SYSTEMS PVT. L TD; (SH. RAM PAL) SHARE APPLICATION FORMS OF SH. RAM PAL; CONFIRMATIO N FROM SH. RAM PAL ALONG WITH AFFIDAVITS; SHARE CERTIFICATE OF SH. RA M PAL (ASSESSMENT YEAR 2009-10) M/S DISHA MEDICAL SYSTEMS PVT. LTD.CO NFIRMATION OF M/S DISHA MEDICAL SYSTEMS PVT. LTD.; APPLICATION FORM F OR SHARES FROM M/S DISHA MEDICAL SYSTEMS PVT. LTD.; BANK STATEMENT OF M/S DISHA MEDICAL SYSTEMS PVT. LTD.; ITR OF M/S DISHA MEDICAL SYSTEMS PVT. LTD. FOR A.Y 2009- 10 WITH BALANCE SHEET AND P & L A/C; AUDITORS REPORT OF M/S DISHA MEDICAL SYSTEMS PVT. LTD; CONFIRMATION OF ACCOUNTS OF M/S DISHA MEDICAL SYSTEMS PVT. LTD; LETTER OF ALLOTMENT OF SHARES OF M/S DISHA MEDICAL SYSTEMS PVT. LTD; REPLY OF NOTICE U/S 131 OF THE IN COME TAX ACT 1961 BY M/S SHEVIN ADVISORY SERVICES PVT. LTD. ALONG WITH C OURIER RECEIPT; FORM OF APPLICATION FOR EQUITY SHARES OF M/S SHEVIN ADVISOR Y SERVICES PVT. LTD; SHARE CERTIFICATE OF M/S DISHA MEDICAL SYSTEMS PVT. LTD.M/S SHEVIN ADVISORY SERVICES PVT. LTD.; BANK STATEMENT OF M/S SHEVIN ADVISORY SERVICES PVT. LTD; COMPUTATION OF INCOME OF M/S SHE VIN ADVISORY SERVICES 10 PVT. LTD; AUDITORS REPORT AND DIRECTORS REPORT OF M /S SHEVIN ADVISORY SERVICES PVT. LTD ALONG WITH BALANCE SHEET AND P & L A/C; ITR OF M/S SHEVIN ADVISORY SERVICES PVT. LTD FOR A.Y. 2009-10 AND SHARE SHARE CERTIFICATE OF M/S SHEVIN ADVISORY SERVICES PVT. LT D. IN SUPPORT OF HIS CONTENTION, HE STATED THAT THE LEGAL ISSUE IN DISPU TE VIZ. ABSENCE OF INCRIMINATING MATERIAL HAVING BEEN FOUND DURING THE COURSE OF SEARCH, ADDITION COULD NOT HAVE BEEN MADE BY THE AO WHICH IS SQUARELY COVERED BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA (2015) 61 TAXMANN.COM 412 (DELHI) VIDE ORDER DATED 28.8.2015, WHEREIN THE HONBLE HIGH COURT HAS HELD THAT IF THE ADDITIONS ARE MADE, BUT NOT BASED ON ANY INCRIMINATING MATER IAL FOUND DURING SEARCH OPERATION, THEN THESE ADDITIONS ARE NOT SUS TAINABLE IN THE EYES OF LAW. LD. COUNSEL FOR THE ASSESSEE ALSO SUBMITTED A COPY OF CASE STATUS OF THE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. K ABUL CHAWLA WHEREIN, IT HAS BEEN MENTIONED THAT CIVIL APPEAL NO. 6415 O F 2016 HAS BEEN DISMISSED VIDE ORDER DATED 17.9.2018. 4. ON THE CONTRARY, LD. CIT(DR) RELIED UPON THE ORD ERS OF THE AUTHORITIES BELOW, BUT COULD NOT CONTROVERT THE ARG UMENTS ADVANCED BY THE LD. COUNSEL FOR THE ASSESSEE ON THE ISSUE OF IN CRIMINATING MATERIAL AND ALSO NOT CITED ANY DECISION CONTRARY TO THE DEC ISION OF CIT VS. KABUL CHAWLA DECIDED IN THE HONBLE HIGH COURT OF DELHI AS WELL AS HONBLE SUPREME COURT OF INDIA. HE HOWEVER, STATED THAT T HE PROVISION OF SECTION 153A HAS RIGHTLY BEEN APPLIED IN THE CASE OF THE AS SESSEE ON THE MATERIAL 11 AVAILABLE WITH THEM. HENCE, THE APPEAL OF THE ASSE SSEE MAY BE DISMISSED. HE ALSO PLACED RELIANCE ON THE FOLLOWI NG DECISIONS:- I) CIT VS. DURGA PRASAD MORE (1971) 82 ITR 540 (S C). II) CIT VS. NIPUN BUILDERS & DEVELOPERS (P) LTD. DE LHI HIGH COURT 2013 30 TAXMANN.COM 292. III) CIT VS. NOVA PROMOTERS & FINLEASE (P) LTD., DE LHI HIGH COURT 2013, 18 TAXMANN.COM 217 IV) CIT VS. NAVODAYA CASTE PVT. LTD., DELHI HIGH CO URT, 2014, (2014) 50 TAXMANN.COM 110 (DELHI). V) CIT VS. BIKRAM SINGH, DELHI HIGH COURT, 2017, IT A 55/2017. VI) CIT VS. NR PORTFOLIO PVT. LTD. DELHI HIGH COURT 2012, 29 TAXMANN.COM 291. VII) CIT VS. EMPIRE BUILDTECH (P) LTD. DELHI HIGH C OURT 2014, 366 ITR 110. VIII) CIT VS. MAF ACADEMY (P) LTD. DELHI HIGH COURT , 2013, 42, TAXMANN.COM 377. IX) CIT VS. ULTRA MODERN EXPORTS (P) LTD. DELHI HIG H COURT 40 TAXMANN.COM 458. X) AMTRAC AUTOMOBILES INDIA PVT. LTD. VS. ACIT ITA NO. 2920/DEL/09 XI) DHINGRA GLOBAL CREDENCE (P) LTD. VS. ITO, ITAT, DELHI, 2009 1 ITR(T) 529. 12 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS, ESPECIALLY THE ASSESSMENT AS WELL AS IMPUGNED ORDER AND THE SUBMISSIONS AND CASE LAWS FILED BY BOTH THE PARTIES. S INCE THE ENTIRE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE ARE SIMILAR TO ASSSESSEES OWN CASE PASSED IN ITA NO. 5073/DEL/2016 FOR AY 2008-09, THEREFORE, OUR FINDING GIVEN IN ITA NO. 5073/DEL/2016 (AY 2008-09) WILL APPLY MUTATIS MUTA NDIS IN THE INSTANT APPEAL, WHEREIN BY RESPECTFULLY FOLLOWING THE PRECEDENT OF THE HONBLE JURISDICTIO NAL HIGH COURT IN THE CASE OF CIT VS. KABUL CHAWLA CIT VS. KABUL CHAWLA (2016) 380 ITR 573(DEL), WE HAVE ALLOWED THE APPEA L OF THE ASSESSEE, BECAUSE AO HAS COMPLETED THE ASSESSMENT AND MADE T HE ADDITION IN DISPUTE WITHOUT ANY INCRIMINATING MATERIAL FOUND DU RING THE SEARCH AND SEIZURE OPERATION AND THE ADDITION IN THIS CASE W AS PURELY BASED ON THE MATERIAL ALREADY AVAILABLE ON RECORD. HENCE, THE AD DITION WAS DELETED AND GROUNDS RAISED BY THE ASSESSEE IN THE APPEAL WERE A LLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ORDER PRONOUNCED ON 21.12.2018. SD/- SD/- (L.P. SAHU) [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21.12.2018 SR BHATNAGAR COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) ASSTT. REGISTRAR, 5. DR ITAT, NEW DELHI