Abhieshek Tewari, New Delhi V. DCIT, Central Circle-13, New Delhi

ITA 6348/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0729 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 13-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL GULATI
• Keywords: Bogus Share capital; Search and seizure; Principle of natural justice; Assessment record
• Section: 153A; 139(1); 13; 153; 68; 132; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 6345/DEL/2017 : ASSTT. YEAR: 2005-06 ITA NO. 6346/DEL/2017 : ASSTT. YEAR: 2006-07 ITA NO. 6347/DEL/2017 : ASSTT. YEAR: 2007-08 ITA NO. 6348/DEL/2017 : ASSTT. YEAR: 2008-09 ITA NO. 6349/DEL/2017 : ASSTT. YEAR: 2009-10 ABHISHEK TIWARI, 6, SOUTHERN AVENUE, MAHARANI BAGH, NEW DELHI-110065 VS DCIT, CENTRAL CIRCLE-13, NEW DELHI (APPELLANT T (RESPONDENT) PAN NO. A DCPT9874A ASSESSEE BY : NONE REVENUE BY : SH. SATPAL GULATI, CIT DR DATE OF HEAR ING: 12 . 07 .20 21 DATE OF PRONOUNCEMENT: 12 .0 7 .20 2 1 ORDER PER AMIT SHUKLA, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN FILED BY THE ASSESSE E AGAINST THE ORDERS OF LD. CIT (A)-35, NEW DELHI DAT ED 03.02.2017. 2. SINCE, THE ISSUES INVOLVED IN ALL THESE APPEALS ARE COMMON WHICH WERE HEARD TOGETHER. 3. IN ITA NO. 6345/DEL/2017, FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE: THAT AN APPEAL AGAINST THE IMPUGNED ORDER OF THE LEARNED A.O. WAS FILED BEFORE C1T (APPEALS) ON 26TH ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 2 APRIL 2013 BUT CIT (APPEALS) HAS PASSED AN EX-PARTE ORDER BY CONFIRMING THE DEMAND OF LD. A.O. ON 02.02.2017 WITHOUT TAKING INTO CONSIDERATION THE REASONS DUE TO WHICH THE APPELLANT COULD NOT PROVID E THE NECESSARY DOCUMENTS AND EVIDENCE AND COULD NOT ATTEND THE HEARINGS BEFORE THE CIT (APPEALS). SOME OF THE REASONS ARE PROVIDED BELOW:- (A) THAT MR. ABHIESHEK TEWARI, APPELLANT WAS HIMSELF SUFFERING FROM VARIOUS ILLNESSES AND HAD AL SO BEEN FRACTURED IN BODY OF RIGHT SCAPULA AND HIS ELD ER BROTHER MR. ANAND TIWARI OF THE SUFFERING FROM A CHRONIC LIVER DISEASE FOR THE PAST 5-6 YEARS. ON ACCOUNT OF HIS SEVERE ILLNESS HE HAS BEEN ADMITTED/TREATED IN VARIOUS HOSPITALS IN INDIA AS W ELL AS ABROAD ON INNUMERABLE OCCASIONS AND HAS BEEN BED - RIDDEN FOR MOST OF THE TIME DURING THESE YEARS. (B) THAT MR. ABHIESHEK TEWARI, APPELLANT WAS HIMSEL F SUFFERING FROM VARIOUS ILLNESSES AND HAD ALSO BEEN INCARCERATED DURING THE RELEVANT TIME. DUE TO FINAN CIAL CRISIS, THE COMPANY HAD STARTED MAKING DEFAULTS IN PAYING INSTALLMENTS TO VARIOUS BANKS AND ALSO IN FULFILLING OTHER FINANCIAL OBLIGATION. CONSEQUENTLY , THE BANKS HAD FILED FALSE & FRIVOLOUS COMPLAINTS WITH T HE CENTRAL BUREAU OF INVESTIGATION (C.B.I.). THE C.B.I . OFFICIALS HAD STARTED MAKING INQUIRIES NOT ONLY FRO M THE DIRECTORS, BUT ALSO FROM THE FAMILY/STAFF MEMBERS E TC. THE C.B.I. OFFICIALS HAD ALSO STARTED CALLING NOT O NLY THE DIRECTORS, BUT ALSO THE STAFF MEMBERS, TO THEIR OFFICE. THE C.B.I. OFFICIALS HAD STARTED MAKING VIS ITS TO THE OFFICE OF THE COMPANY. MR. P.K. TIWARI WAS INCARCERATED IN CONNECTION WITH THE CBI CASES FROM JULY, 2012 TO OCTOBER, 2012 AND FROM SEPTEMBER 2014 TO MARCH 2015. THE APPELLANT COMPANY WAS GOING THROUGH SEVERE FINANCIAL CRUNCH DURING ALL THESE YE ARS, DUE TO WHICH MOST OF THE COMPANY STAFF LEFT THE COMPANY AS THEIR SALARIES COULD NOT BE PAID. ON THE OTHER HAND, MR. P.K. TIWARI COULD NOT DEVOTE TIME T O PURSUE THE APPEALS ON ACCOUNT OF THE AFOREMENTIONED REASONS. ON ACCOUNT OF HIS ADVANCE AGE, FREQUENT INCARCERATION AND THE EXTRA ORDINARY FINANCIAL CRIS ES AND OTHER ADVERSE CONDITIONS, MR. P.K. TIWARI WAS ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 3 UNDER ACUTE DEPRESSION AND COULD NOT THEREFORE, FOC US ON THE MATTER. (C) THAT THE AUTHORIZED REPRESENTATIVE, REPRESENTIN G THE APPELLANT BEFORE THE RESPONDENT EXTRACTED HUGE MONEY FROM THE APPELLANT BUT DID NOT PROPERLY PUT FORWARD THE CASE BEFORE THE RESPONDENT. THEY SHOULD AT LEAST HAVE REPRESENTED THE DIFFICULTIES BEING FA CED BY THE APPELLANT AND OUGHT TO HAVE DEFENDED THE APPELLANT TO THE BEST OF THEIR CAPACITY ON THE BASI S OF RECORDS WHICH WERE WITHIN THEIR POSSESSION AND KNOWLEDGE. BUT MOST UNFORTUNATELY THEY FAILED TO PERFORM THEIR PROFESSIONAL DUTY, RESULTING IN PASSI NG OF THE IMPUGNED ORDER. (D) THAT THE RESPONDENT OUGHT TO HAVE CONSIDERED TH E AFOREMENTIONED BONA FIDE REASONS AND EXTRA ORDINARY CIRCUMSTANCES AND SHOULD HAVE GRANTED FURTHER TIME TO THE APPELLANT TO SATISFY THE RESPONDENT ON THE ASPE CT THAT THE DEMAND RAISED BY THE LD. A.O. WAS ILLEGAL AND UNWARRANTED. THE EX-PARTE ORDER PASSED BY THE RESPONDENT IS UNWARRANTED AND HAS RESULTED IN EXTRE ME PREJUDICE TO THE APPELLANT. (E) THAT THE APPELLANT IS ENTITLED FOR HEARING INST EAD OF THE CASE BEING DECIDED UNHEARD. (F) THAT THE FAILURE ON PART OF THE APPELLANT IN PU RSUING ITS APPEAL WAS NEITHER DELIBERATE NOR INTENTIONAL A ND THE SAME WAS OCCASIONED DUE TO REASONS MENTIONED ABOVE. (G) THAT THE EXTRA-ORDINARY ADVERSE SITUATION SUFFE RED BY THE APPELLANT ENTITLES IT FOR A FAIR HEARING BEF ORE THIS TRIBUNAL SO THAT THE CASE CAN BE DECIDED ON ME RITS INSTEAD OF BEING THROWN OUT ON ACCOUNT OF NON REPRESENTATION. (H) THE APPELLANT DID EVERYTHING WITHIN ITS POWER B Y ENGAGING PROFESSIONALS TO REPRESENT IT BEFORE THE RESPONDENT BUT THE SAID PROFESSIONALS FAILED TO PER FORM ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 4 THEIR DUTY BY NOT ADVISING THE COMPANY IN THE MATTE R AND BY NOT REPRESENTING IT IN BONA-FIDE MANNER. (I) THAT THE APPELLANT SOUGHT A NUMBER OF ADJOURNMENTS AND TRIED TO PRESENT ITS CASE. (J) THAT DUE TO LACK OF FUNDS AND NON AVAILABILITY OF DOCUMENTS AS EXPLAINED ABOVE, THE COMPANY, INSPITE OF TAKING MANY ADJOURNMENTS, WAS NOT ABLE TO DEFEND ITS CASE BEFORE CIT (APPEALS). (K) THAT NO REASONABLE OPPORTUNITY WAS PROVIDED TO THE COMPANY TO PRESENT ITS CASE AND TO JUSTIFY THE GROUNDS FOR QUASHING THE IMPUGNED ORDER OF THE LEARNED A.O. (L) THAT THE IMPUGNED ORDER, CONFIRMING THE ORDER O F A.O., WAS PASSED BY THE CIT (APPEALS) WITHOUT CONSIDERING THE GROUNDS PROVIDED BY THE APPELLANT O R THE DOCUMENTS OR EVIDENCES TO BE PROVIDED ON PART O F THE COMPANY AND THE ORDER WAS PASSED EX PARTE. (M) THAT THE APPELLANT HAS VALID GROUNDS AND WILL B E ABLE TO ESTABLISH THAT THE IMPUGNED ORDER PASSED BY THE LEARNED A.O. WAS BAD IN LAW AND WAS BASED ONLY ON PRESUMPTIONS, IF A REASONABLE OPPORTUNITY IS PROVID ED TO THE APPELLANT. (N) THAT THE GROUNDS PROVIDED BY THE APPELLANT IN T HE APPEAL BEFORE THE CIT (APPEALS) WHICH WERE NOT CONSIDERED BY IT BEFORE CONFIRMING THE IMPUGNED ORD ER OF LEARNED A.O. ARE PROVIDED BELOW. 2. THAT THE ASSESSMENT ORDER DATED 18.03.2013, PASSED BY THE LD. A.O. U/S 144 R.W.S. 153A, IS BAD IN LAW. 3. THAT THE ASSESSMENT ORDER DATED 18.03.2013 PASSE D U/S 144 R.W.S. 153A, DESERVES TO BE QUASHED, BECAUS E NATURAL JUSTICE HAS BEEN DENIED BY THE LD. A.O. TO THE ASSESSEE. 4. THAT ON THE FACTS OF THE CASE AND UNDER THE LAW, THE LD. A.O. HAS ERRED IN NOT TAKING INTO CONSIDERATION THE ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 5 ASSESSEE'S REPLY, VIDE LETTER DATED 23.02.2013 (FIL ED ON 28.02.2013). 5. THAT ON THE FACTS OF THE CASE AND UNDER THE LAW, THE LD. A.O. HAS ERRED IN ALTOGETHER IGNORING THE ASSESSEE'S REPLY, VIDE LETTER DATED 15.03.2013(DISPATCHED THROUGH POSTAL AUTHORITIES VI DE THEIR RECEIPT DATED 15.03.2013 AND ALSO ON THE DARK COUNTER VIDE THEIR RECEIPT DATED 18.03.2013). 6. THAT ON THE FACTS OF THE CASE AND UNDER THE LAW, THE LD. A.O HAS ERRED IN TREATING THE ENTIRE DEPOSIT OF RS.6,27,377/- APPEARING IN THE SAVING BANK A/C WITH CORPORATION BANK, AS UNEXPLAINED DEPOSITS AND THUS MAKING AN ADDITION OF RS.6,27,377/- IN THE HANDS OF THE ASSESSEE. THE OBSERVATION OF THE LD. A.O. ARE EITHER FACTUALL Y INCORRECT OR ARE LEGALLY UNTENABLE. 7. THAT THE TOTAL INCOME ASSESSED AT RS. 16,58,577/ - IS ARBITRARY, UNJUST, ILLEGAL & HIGHLY EXCESSIVE. 8. THAT THE ADDITIONAL INCOME TAX LIABILITY CREATED AT RS. 2,11,175/- IS ARBITRARY, UNJUST, ILLEGAL & HIGH LY EXCESSIVE. 9. THAT ON THE FACTS OF THE CASE AND UNDER THE LAW, THE LD. A.O. HAS ERRED IN CHARGING INTEREST U/S 234A. WITHOUT PREJUDICE, THE INTEREST CHARGED IS HIGHLY EXCESSIVE. 10. THAT ON THE FACTS OF THE CASE AND UNDER THE LAW , THE LD. A.O. HAS ERRED IN CHARGING INTEREST U/S 234 B, WITHOUT PREJUDICE, THE INTEREST CHARGED IS HIGHLY EXCESSIVE. 4. THE ASSESSEE COMPANY HAS FILED ITS ORIGINAL RETU RN OF INCOME U/S 139(1) AS UNDER: ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 6 S.NO. ASSESSMENT YEAR DATE OF FILING OF THE RETURN U/S 139(1) RETURNED INCOME 1. 2005-06 29.07.2005 RS.10,31,200 2. 2006-07 19.12.2006 RS.18,25,675 3. 2007-08 21.10.2007 RS.27,64,972 4. 2008-09 21.10.2008 RS.34,93,607 5. 2009-10 06.02.2010 RS.59,35,868 5. LATER ON, A SEARCH AND SEIZURE OPERATION WAS CAR RIED U/S 132 ON 11.03.2011 ON M/S CENTURY COMMUNICATION GROU P (M/S MAHUAA MEDIA GROUP) AND ACCORDINGLY, A NOTICE U/S 1 53A WAS ISSUED. AT THE TIME OF SEARCH THE ASSESSMENT FOR TH E ASSESSMENT YEARS 2005-06, 2006-07, 2007-08, 2009-10 AND 2010-1 1 RESPECTIVELY HAS ATTAINED FINALITY AND ACCORDINGLY IN TERMS OF SECOND PROVISO TO SECTION 153A SUCH AN ASSESSMENT I S TO BE TREATED AS UNABATED AND WITHOUT ANY REFERENCE TO AN Y SEIZED MATERIAL OR INCRIMINATING EVIDENCE FOUND DURING THE COURSE OF SEARCH. IN THE IMPUGNED PROCEEDINGS, WE FIND THAT T HE ADDITIONS MADE BY THE ASSESSING OFFICER ARE NOT BASED ON ANY MATERIAL FOUND AND SEIZED DURING THE COURSE OF SEARCH AND SE IZURE ACTION. THE FACT OF WHICH HAS NOT BEEN DISPUTED BY THE REVE NUE. 6. BEFORE THE LD. CIT (A), THE ASSESSEE HAS CHALLEN GED THAT THE SAID ADDITIONS, HOWEVER, THE LD. CIT (A) CONFIR MED THE ACTION OF THE ASSESSING OFFICER AS THE HEARINGS HAV E BEEN DEFAULTED BY THE ASSESSEE. 7. BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESS EE AND THE MATTER IS BEING ADJUDICATED ON HEARING THE ARGU MENTS OF LD. DR AND BASED ON THE RECORD AVAILABLE BEFORE US. ON PERUSAL OF THE RECORD, WE FIND THAT IT IS AN ADMITTED FACT THA T NO ADDITION HAS BEEN MADE IN ANY OF THE YEARS WHICH WAS BASED O N ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 7 INCRIMINATING MATERIAL OR EVIDENCE WAS FOUND DURING THE COURSE OF SEARCH. 8. THUS, NO ADDITION CAN BE TWINED IN THE PRESENT P ROCEEDINGS U/S 153A. WE HAVE EXAMINED THE FINDINGS OF THE AO A ND LD. CIT(A) AND FIND THAT IT IS AN UNDISPUTABLE FACT TH AT THE ADDITION MADE BY THE AO IS NOT BASED ON SEIZED MATERIAL / DO CUMENTS FOUND DURING THE COURSE OF SEARCH. IN SUCH A SITUAT ION, ADDITION IS BEYOND THE SCOPE OF SECTION 153A AND WE RELY UPO N THE FOLLOWING JUDGMENTS FOR ADJUDICATING THE MATTER: PCIT VS. MEETA GUTGUTIA [2017] 82 TAXMANN.COM 287 (DELHI) CIT VS. KABUL CHAWLA [2016] 380 ITR 573 (DELHI) CIT VS. LANCY CONSTRUCTIONS [2016] 237 TAXMAN 728 (KARNATAKA). DCIT VS. KURELE PAPER MILLS PVT. LTD. IN ITA NO.3761/DEL/2011. PR.CIT VS. KURELE PAPER MILLS PVT. LTD. IN ITA NO.3 69/2015 (DEL HC). PR. CIT VS. KURELE PAPER MILLS PVT. LTD. [2016] 380 ITR 65 (SC) CIT VS. SAUMYA CONSTRUCTION P. LTD. [2016] 387 ITR 529 (GUJ) 9. ON THE OTHER HAND, THE LD. DR THOUGH COULD NOT C ONTROVERT THE CONTENTION THAT THERE IS NO INCRIMINATING MATER IAL FOUND AT THE TIME OF SEARCH, BUT HE SUBMITTED THAT, ONCE NOT ICE U/S 153(3) IS ISSUED TO THE ASSESSEE THEN IT IS INCUMBE NT UPON THE ASSESSEE TO FILE THE RETURN OF INCOME AND AO HAS AL L THE POWERS TO ASSESS AND REASSESS THE TOTAL INCOME FOR THE YEA R AND SAME CANNOT BE RESTRICTED TO THE SEIZED MATERIAL. HE REL IED UPON THE JUDGMENT OF HON'BLE HIGH COURT IN THE CASE OF CIT V S. ANIL KUMAR BHATIA. ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 8 10. AFTER CONSIDERING THE AFORESAID SUBMISSIONS AND ON PERUSAL OF THE ORDERS BEFORE US, WE FIND THAT IT IS AN ADMI TTED FACT THAT THE TIME FOR COMPLETION OF ORIGINAL ASSESSMENTS HAS ENDED AND THE ASSESSMENT PROCEEDINGS ATTAINED FINALITY AT THE TIME OF SEARCH FOR THESE YEARS. IT IS ALSO UNDISPUTED THAT ADDITIONS MADE BY THE AO IS NOT BASED ON INCRIMINATING MATERI AL FOUND DURING THE COURSE OF SEARCH, ALBEIT IT IS BASED ON THE ASSESSMENT RECORD ONLY. 11. IN SUCH A SITUATION, ADDITIONS MADE ARE BEYOND THE SCOPE OF 153A PROCEEDINGS. THIS PROPOSITION OF LAW HAS BE EN WELL SETTLED AND REITERATED BY THE HON'BLE DELHI HIGH CO URT IN THE CASE OF CIT VS. KABUL CHAWLA REPORTED IN [2016] 380 ITR 573 (DELHI) AND HAS BEEN REITERATED IN THE CASE OF PR. CIT VS. MEETA GUTGUTIA REPORTED IN [2017] 152 DTR 153 (DELHI). 12. IN THE CASE OF CIT VS. KABUL CHAWLA (SUPRA), TH E HON'BLE HIGH COURT, AFTER DISCUSSING VARIOUS JUDGMENTS AND ANALYZING SECTION 153A, HAVE LAID DOWN THE FOLLOWING LEGAL PR OPOSITION: I. ONCE A SEARCH TAKES PLACE UNDER SECTION 132 OF T HE ACT, NOTICE UNDER SECTION 153A(1) WILL HAVE TO BE MANDAT ORILY ISSUED TO THE PERSON SEARCHED REQUIRING HIM TO FILE RETURN S 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 DA TE OF THE SEARCH SHALL ABATE. THE TOTAL INCOME FOR SUCH AYS W ILL HAVE TO BE COMPUTED BY THE AOS AS A FRESH EXERCISE. ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 9 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 REA SSESS THE 'TOTAL INCOME' OF THE AFOREMENTIONED SIX YEARS IN S EPARATE ASSESSMENT ORDERS FOR EACH OF THE SIX YEARS. IN OTH ER WORDS THERE WILL BE ONLY ONE ASSESSMENT ORDER IN RESPECT OF EACH OF THE SIX AYS 'IN WHICH BOTH THE DISCLOSED AND THE UN DISCLOSED INCOME WOULD BE BROUGHT TO TAX'. IV. ALTHOUGH SECTION 153 A DOES NOT SAY THAT ADDITI ONS SHOULD BE STRICTLY MADE ON THE BASIS OF EVIDENCE FOUND IN THE COURSE OF THE SEARCH, OR OTHER POST-SEARCH MATERIAL OR INFORM ATION AVAILABLE WITH THE AO WHICH CAN BE RELATED TO THE E VIDENCE FOUND, IT DOES NOT MEAN THAT THE ASSESSMENT 'CAN BE ARBITRARY OR MADE WITHOUT ANY RELEVANCE OR NEXUS WITH THE SEI ZED MATERIAL. OBVIOUSLY AN ASSESSMENT HAS TO BE MADE UN DER THIS SECTION ONLY ON THE BASIS OF SEIZED MATERIAL.' V. IN ABSENCE OF ANY INCRIMINATING MATERIAL, THE CO MPLETED ASSESSMENT CAN BE REITERATED AND THE ABATED ASSESSM ENT OR REASSESSMENT CAN BE MADE. THE WORD 'ASSESS' IN SECT ION 153 A IS RELATABLE TO ABATED PROCEEDINGS (I.E. THOSE PEND ING ON THE DATE OF SEARCH) AND THE WORD 'REASSESS' TO COMPLETE D ASSESSMENT PROCEEDINGS. VI. INSOFAR AS PENDING ASSESSMENTS ARE CONCERNED, T HE JURISDICTION TO MAKE THE ORIGINAL ASSESSMENT AND TH E ASSESSMENT UNDER SECTION 153A MERGES INTO ONE. ONLY ONE ASSESS MENT SHALL BE MADE SEPARATELY FOR EACH AY ON THE BASIS OF THE FINDINGS OF THE SEARCH AND ANY OTHER MATERIAL EXISTING OR BROUG HT ON THE RECORD OF THE AO. ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 10 VII. COMPLETED ASSESSMENTS CAN BE INTERFERED WITH B Y THE AO WHILE MAKING THE ASSESSMENT UNDER SECTION 153A ONLY ON THE BASIS OF SOME INCRIMINATING MATERIAL UNEARTHED DURI NG THE COURSE OF SEARCH OR REQUISITION OF DOCUMENTS OR UND ISCLOSED INCOME OR PROPERTY DISCOVERED IN THE COURSE OF SEAR CH WHICH WERE NOT PRODUCED OR NOT ALREADY DISCLOSED OR MADE KNOWN IN THE COURSE OF ORIGINAL ASSESSMENT.' 13. THE HON'BLE HIGH COURT HAS ALSO TAKEN NOTE OF T HE JUDGMENT OF THEIR EARLIER JUDGMENT IN THE CASE OF C IT VS. ANIL KUMAR BHATIA REPORTED IN [2013] 352 ITR 493 (DEL) A ND OBSERVE THAT THIS WAS NOT THE ISSUE BEFORE THE COURT. AGAIN IN THE CASE OF PR. CIT VS. MEETA GUTGUTIA'S (SUPRA), THEIR LORD SHIPS HAVE AGAIN REITERATED THE SAME PRINCIPLE AND HAVE ALSO C ONSIDERED THE CASE OF SMT. DAYAWANTI GUPTA REPORTED IN 390 IT R 496. 14. THE RELEVANT OBSERVATIONS MADE BY THEIR LORDSHI PS ARE AS UNDER: '56. SECTION 153A OF THE ACT IS TITLED 'ASSESSMENT IN CASE OF SEARCH OR REQUISITION'. IT IS CONNECTED TO SECTION 132 WHICH DEALS WITH 'SEARCH AND SEIZURE'. BOTH THESE PROVISI ONS, THEREFORE, HAVE TO BE READ TOGETHER. SECTION 153A I S INDEED AN EXTREMELY POTENT POWER WHICH ENABLES THE REVENUE TO REOPEN AT LEAST SIX YEARS OF ASSESSMENTS EARLIER TO THE YEAR OF SEARCH. IT IS NOT TO BE EXERCISED LIGHTLY. IT IS ONLY IF DURIN G THE COURSE OF SEARCH UNDER SECTION 132 INCRIMINATING MATERIAL JUS TIFYING THE RE-OPENING OF THE ASSESSMENTS FOR SIX PREVIOUS YEAR S IS FOUND THAT THE INVOCATION OF SECTION 153A QUA EACH OF THE AYS WOULD BE JUSTIFIED. ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 11 57. THE QUESTION WHETHER UNEARTHING OF INCRIMINATIN G MATERIAL RELATING TO ANY ONE OF THE AYS COULD JUSTIFY THE RE OPENING OF THE ASSESSMENT FOR ALL THE EARLIER AYS WAS CONSIDERED B OTH IN ANIL KUMAR BHATIA (SUPRA) AND CHETAN DAS LACHMAN DAS (SU PRA). INCIDENTALLY, BOTH THESE DECISIONS WERE DISCUSSED T HREADBARE IN THE DECISION OF THIS COURT IN KABUL CHAWLA {SUPRA). AS FAR AS ANIL KUMAR BHATIA (SUPRA) WAS CONCERNED, THE COURT IN PARAGRAPH 24 OF THAT DECISION NOTED THAT 'WE ARE NO T CONCERNED WITH A CASE WHERE NO INCRIMINATING MATERIAL WAS FOU ND DURING THE SEARCH CONDUCTED UNDER SECTION 132 OF THE ACT. WE THEREFORE EXPRESS NO OPINION AS TO WHETHER SECTION I53A CAN BE INVOKED EVEN UNDER SUCH SITUATION'. THAT QUESTION WAS, THEREFORE, LEFT OPEN. 15. AS FAR AS CASE LAW CHETAN DAS LACHMAN DAS IS CO NCERNED, IN PARA 11OF THE DECISION IT WAS OBSERVED: '11. SECTION 153A (1) (B) PROVIDES FOR THE ASSESSME NT OR REASSESSMENT OF THE TOTAL INCOME OF THE SIX ASSESSM ENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH THE SEARCH TOOK PLACE. TO RE PEAT, THERE IS NO CONDITION IN THIS SECTION THAT ADDITIONS SHOU LD BE STRICTLY MADE ON THE BASIS OF EVIDENCE FOUND IN THE COURSE O F THE SEARCH OR OTHER POST-SEARCH MATERIAL OR INFORMATION AVAILA BLE WITH THE ASSESSING OFFICER WHICH CAN BE RELATED TO THE EVIDE NCE FOUND. THIS, HOWEVER, DOES NOT MEAN THAT THE ASSESSMENT UN DER SECTION 153A CAN BE ARBITRARY OR MADE WITHOUT ANY R ELEVANCE OR NEXUS WITH THE SEIZED MATERIAL. OBVIOUSLY AN ASSESS MENT HAS TO BE MADE UNDER THIS SECTION ONLY ON THE BASIS OF SEI ZED MATERIAL.' ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 12 16. IN KABUL CHAWLA (SUPRA), THE COURT DISCUSSED TH E DECISION IN FILALEX INDIA LTD. (SUPRA) AS WELL AS THE ABOVE TWO DECISIONS AND OBSERVED AS UNDER: '31. WHAT DISTINGUISHES THE DECISIONS BOTH IN CIT V . CHETAN DAS LACHMAN DAS (SUPRA), AND FILATEX INDIA LTD. V. CIT- IV (SUPRA) IN THEIR APPLICATION TO THE PRESENT CASE IS THAT IN BO TH THE SAID CASES THERE WAS SOME MATERIAL UNEARTHED DURING THE SEARCH, WHEREAS IN THE PRESENT CASE THERE ADMITTEDLY WAS NO NE. SECONDLY, IT IS PLAIN FROM A CAREFUL READING OF THE SAID TWO DECISIONS THAT THEY DO NOT HOLD THAT ADDITIONS CAN BE VALIDLY MADE TO INCOME FORMING THE SUBJECT MATTER OF COMPLE TED ASSESSMENTS PRIOR TO THE SEARCH EVEN IF NO INCRIMIN ATING MATERIAL WHATSOEVER WAS UNEARTHED DURING THE SEARCH . 32. RECENTLY BY ITS ORDER DATED 6TH JULY 2015 IN ITA NO . 369 OF 2015 (PR. COMMISSIONER OF INCOME TAX V. KURELE PAPE R MILLS P. LTD.), THIS COURT DECLINED TO FRAME A QUESTION OF L AW IN A CASE WHERE, IN THE ABSENCE OF ANY INCRIMINATING MATERIAL BEING FOUND DURING THE SEARCH UNDER SECTION 132 OF THE ACT, THE REVENUE SOUGHT TO JUSTIFY INITIATION OF PROCEEDINGS UNDER S ECTION I53A OF THE ACT AND MAKE AN ADDITION UNDER SECTION 68 OF TH E ACT ON BOGUS SHARE CAPITAL GAIN. THE ORDER OF THE CIT (A), AFFIRMED BY THE ITAT, DELETING THE ADDITION, WAS NOT INTERFERED WITH.' 17. IN KABUL CHAWLA (SUPRA), THE COURT REFERRED TO THE DECISION OF THE RAJASTHAN HIGH COURT IN JAI STEEL (INDIA) V. ASSN. CIT [2013] 36 TAXMANN.COM 523/219 TAXMAN 223. THE SAID PART OF THE DECISION IN KABUL CHAWLA (SUPRA) IN PARAS 33 AN D 34 READS AS UNDER: ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 13 33. THE DECISION OF THE RAJASTHAN HIGH COURT IN JAI STEEL (INDIA), JODHPUR V. A CIT (SUPRA) INVOLVED A CASE W HERE CERTAIN BOOKS OF ACCOUNTS AND OTHER DOCUMENTS THAT HAD NOT BEEN PRODUCED IN THE COURSE OF ORIGINAL ASSESSMENT WERE FOUND IN THE COURSE OF SEARCH. IT WAS HELD WHERE UNDISCLOSED INC OME OR UNDISCLOSED PROPERTY HAS BEEN FOUND AS A CONSEQUENC E OF THE SEARCH, THE SAME WOULD ALSO BE TAKEN INTO CONSIDERA TION WHILE COMPUTING THE TOTAL INCOME UNDER SECTION 153A OF TH E ACT. 18. THE COURT THEN EXPLAINED AS UNDER: '22. IN THE FIRM OPINION OF THIS COURT FROM A PLAIN READING OF THE PROVISION ALONG WITH THE PURPOSE AND PURPORT OF THE SAID PROVISION, WHICH IS INTRICATELY LINKED WITH SEARCH AND REQUISITION UNDER SECTIONS 132 AND 132A OF THE ACT, IT IS APPAR ENT THAT: (A) THE ASSESSMENTS OR REASSESSMENTS, WHICH STAND A BATED IN TERMS OF II PROVISO TO SECTION 153A OF THE ACT, THE AO ACTS UNDER HIS ORIGINAL JURISDICTION, FOR WHICH, ASSESSM ENTS HAVE TO BE MADE; (B) REGARDING OTHER CASES, THE ADDITION TO THE INCO ME THAT HAS ALREADY BEEN ASSESSED, THE ASSESSMENT WILL BE MADE ON THE BASIS OF INCRIMINATING MATERIAL; AND (C) IN ABSENCE OF ANY INCRIMINATING MATERIAL, THE C OMPLETED ASSESSMENT CAN BE REITERATED AND THE ABATED ASSESSM ENT OR REASSESSMENT CAN BE MADE.' 19. THUS, THE HON'BLE HIGH COURTS AFTER DETAIL ANAL YSIS CONCLUDED THAT, WHENCE THERE IS NO INCRIMINATING MA TERIAL QUA EACH OF THE ASSESSMENT YEAR ROPED IN UNDER SECTION 153A, THEN, ITA NOS. 6345 TO 6349/DEL/2017 ABHISHEK TIWARI 14 NO ADDITION CAN BE MADE WHILE FRAMING THE ASSESSMEN T UNDER SECTION 153A. 20. THE AFORESAID PRINCIPLE AND RATIO ARE CLEARLY A PPLICABLE ON THE FACTS OF THE PRESENT CASE ALSO, AS ADMITTEDLY N O INCRIMINATING MATERIAL RELATING TO THESE ASSESSMENT YEARS OR AS A MATTER OF FACT FOR ANY OF THE ASSESSMENT YEARS WE RE FOUND DURING THE COURSE OF SEARCH. 21. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/07/2021. SD/- SD/- (DR. B. R. R. KUMAR) (AMIT SHUKLA) ACCOUNTANT MEMBER JUD ICIAL MEMBER DATED: 12/07/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR