Appeal Details
Counselvise Citation
[2018] 121 COUNSELVISE.COM (IT) 4971 (ITAT-CHANDIGARH)
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
10 month(s) 25 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
09-05-2018
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
A
Next Hearing Date
02-05-2018
Assessment Year
2010-2011
Appeal Filed On
14-06-2017
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE MS DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.990/CHD/2017 (ASSESSMENT YEAR : 2010-11) THE D.C.I.T., VS. M/S DHG MARKETING PVT. LTD., CENTRAL CIRCLE-II, SCO 49-50, SECTOR 26, CHANDIGARH. CHANDIGARH. PAN: AADCD1364Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GULSHAN RAJ, CIT DR RESPONDENT BY : SHRI ASHWANI KUMAR, CA & MS. KANIKA GUPTA, CA DATE OF HEARING : 02.05.2018 DATE OF PRONOUNCEMENT : 09.05.2018 ORDER PER ANNAPURNA GUPTA, A.M. : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAINST THE ORDER PASSED BY LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-3, GURGAON DATE D 31.3.2017, RELATING TO ASSESSMENT YEAR 2010-11 DELE TING THE ADDITION MADE BY THE AO PURSUANT TO SEARCH CONDUCTED ON THE ASSESSEE AND ASSESSMENT FRAMED U/S 153A OF THE ACT, FOR THE REASON THAT NO INCRIMINATI NG MATERIAL WAS FOUND DURING SEARCH. 2. BRIEF FACTS ARE THAT A SEARCH AND SEIZURE OPERAT ION U/S 132 OF THE INCOME TAX ACT, 1961(IN SHORT THE |ACT ), WAS CARRIED OUT ON THE ASSESSEE. THEREAFTER STATUTORY N OTICE U/S 153A OF THE ACT WAS ISSUED TO THE ASSESSEE, IN RESP ONSE TO WHICH THE ASSESSEE FILED ITS RETURN OF INCOME DECLA RING NIL INCOME. SUBSEQUENTLY NOTICES U/S 143(2) AND 142(1) 2 ALONGWITH QUESTIONNAIRE WERE ISSUED TO THE ASSESSEE , IN RESPONSE TO WHICH DUE REPLY WAS FILED BY THE ASSESS EE. AFTER CONSIDERING THE REPLIES FILED BY THE ASSESSEE, ADDI TION U/S 68 OF THE ACT, ON ACCOUNT OF UNEXPLAINED CREDITS RE LATING TO SHARE CAPITAL RECEIVED BY THE ASSESSEE DURING THE I MPUGNED YEAR WAS MADE AMOUNTING TO RS.4.15 CRORES. 3. THE MATTER WAS CARRIED IN APPEAL BEFORE THE LD. CIT(APPEALS), WHERE THE ASSESSEE CONTENDED THAT THE IMPUGNED ADDITION COULD NOT HAVE BEEN MADE IN THE P RESENT CASE IN THE ABSENCE OF ANY INCRIMINATING MATERIAL F OUND DURING THE COURSE OF SEARCH AND FURTHER SINCE THE ASSESSMENT IN THE PRESENT CASE HAD NOT ABATED. THE LD.CIT(APPEALS) AGREED WITH THE CONTENTIONS OF THE ASSESSEE, FINDING THAT THE ASSESSMENT HAVING NOT AB ATED IN THE PRESENT CASE AND NO INCRIMINATING MATERIAL HAVI NG BEEN FOUND DURING THE COURSE OF SEARCH HE DELETED THE AD DITION MADE FOLLOWING VARIOUS DECISIONS OF THE HIGH COURT AND THE ITAT IN THIS REGARD. 4. AGGRIEVED BY THE SAME, THE REVENUE HAS COME IN A PPEAL BEFORE AS RAISING THE FOLLOWING GROUNDS: I) 'WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) WAS RIGHT IN CONCLUDING THAT THERE WAS A DIFF ERENCE IN SCOPE OF PROCEEDING UNDER SECTION 153A OF THE INCOM E TAX ACT, 1961 FOR AN ABATED ASSESSMENT AND FOR A COMPLETED ASSESSMENT? II) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE THE CIT(A) WAS RIGHT IN HOLDING THAT NO ADDITION CAN BE MAD E U/S 153A IN RESPECT OF COMPLETED ASSESSMENT OF NO INCRIM INATING MATERIAL IS FOUND DURING SEARCH? III) WHETHER THERE IS ANY RESTRICTION ON THE POWERS OF T HE ASSESSING OFFICER UNDER SECTION 153A OF THE INCOME TAX ACT, 3 1961 TO CONFINE ONLY TO THE 'INCRIMINATING MATERIAL FO UND DURING THE SEARCH', EVEN THOUGH SUCH WORDS OR CONDIT IONS ARE NOT MENTIONED IN THE SECTION PER SE? IV) WHETHER ON THE FACTS AND CIRCUMSTANCE OF THE CASE T HE CIT(A) WAS CORRECT IN INTERPRETING SECTION 153A WHIC H STARTED WITH A NON-OBSTINATE CLAUSE STATING THEREIN THAT THE O PERATION OF SECTION 139,147, 148, 149, 151 & 153 WAS DEPOSED. MEANING THEREBY THAT IN SEARCH CASES THE ASSESSING OFFICER IS DUTY BOUND TO TAKE UP THE ASSESSMENT U/S 153A AND T HAT THE ABOVE MENTIONED SECTIONS CANNOT BE INVOKED. THEREFOR E, EVEN IF INCRIMINATING MATERIAL IS NOT FOUND DURING SEARCH, BUT IF ANT ESCAPED INCOME OR UNDERASSESSED INCOME UNDISCLOSED INCOME HAS TO BE ASSESSED FOR SUCH COMPLETED ASSESSM ENT, THEN IT HAS TO BE DONE IN THE PROCEEDING U/S 153A I N SEARCH CASES? V) WHETHER ON THE FACTS AND CIRCUMSTANCED OF THE CA SE THE CIT(A) WAS RIGHT TO BRING IN SPECIAL PROCEDURE OF BLOC K ASSESSMENT AS LAID IN CHAPTER XIV B INTO THE NEW PR OCEDURE OF SEARCH ASSESSMENT U/S 153A INTRODUCED BY FINANCE ACT, 2003, W.E.F. 1.06.2003, WHEN CHAPTER XIV B WAS SCRAPP ED TO REDUCED LITIGATION AND DISPUTE REGARDING TREATME NT OF A PARTICULAR INCOME AS UNDISCLOSED AND WHETHER IT IS R ELATABLE TO MATERIAL FOUND DURING SEARCH (FINANCE BILL 2003 UNDER H EAD ' ASSESSMENT IN SEARCH CASES- ABOLITION OF THE SPECIAL PROCEDURE IN CHAPTER XIV-B AND INTRODUCTION OF NEW PROVISIONS') VI) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT (A) WAS RIGHT IN IGNORING THE BASIC DIFFERENCE I N SEARCH ASSESSMENT U/S 153A AND CHAPTER XIVB BEING THAT IN SECTION 153A THE 'TOTAL INCOME' HAS TO BE ASSESSED OR REASS ESSED IN SIX SEPARATE A.VS., AS OPPOSED TO ASSESSING THE 'UNDISCLOSED INCOME' IN THE SCRAPED CHAPTER XIV B F OR BLOCK PERIOD IN A SINGLE ASSESSMENT? VII) WHETHER ON THE FACTS AND CIRCUMSTANCED OF THE CASE THE CIT(A) WAS RIGHT IN FOLLOWING DELHI HIGH COURT DE CISION IN THE CASE OF CIT VS. KABUL CHAWLA (61 TAXMAN.COM 412) WHEN THE HON'BLE HC ITSELF ADMITS IN PARA 37 (IV) TH E 'ALTHOUGH SECTION 153A DOES NOT SAY THAT ADDITIONS S HOULD STRICTLY MADE ON THE BASIS OF EVIDENCE FOUND IN COUR SE OF SEARCH.. ' THERE BY INTERPRETING THE STATUTE IN THE MANNER WHICH WERE NEVER WORDED OR INTENDED BY THE LEGISLATURE? VIII) WHETHER ON THE FACTS AND CIRCUMSTANCED OF THE CASE THE CIT(A) HAS ERRED IN IGNORING THE PRINCIPLE OF STRIC T INTERPRETATION OF STATUES WHEN THE WORDS USED ON THE STATUE I.E. SEC 153(1)(B) OF THE IT ACT, 1961 ARE ASSESS OR RE ASSESS THE 'TOTAL INCOME' IX) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE CIT(A); RIGHT IN NOT FOLLOWING THE HON'BLE SC JUD GMENT ON INTERPRETATION OF STATUE IN THE CASE OF SMT. TARULA TA SHYAM & OTHERS VS. CIT (108 ITR 345), KESHAVJI RAVJI AND C O VD CIT (183 ITR 1). PADAMSUNDARA RAO (DEED.) & OTHERS VS 4 STATE OF TAMIL NADU 255 ITR 147, PRAKASH NATH KHANNA & OTHERS VS CIT 266 ITR 1, INSTITUTE OF CHARTED ACCOUNT ANTS OF INDIA VS. PRICE WATER HOUSE 93 TAXMAN 588? X) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE CIT(A) IS RIGHT IN NOT FOLLOWING THE HON'BLE HC JUDGMEN T ON THE ISSUE OF ADDITIONS IN SEARCH CASE U/S 153A IN THE CA SE OF CIT VS. ANIL KUMAR BHATIA 352 ITR 493 (DELHI HC), MADUGULA VENU VS. DIT 49 TAXMAN.COM 200 (DELHI HC), CIT VS. RAJ KUMAR ARORA 367 ITR 517 (ALLAHABAD HC), CANARA HOUSING DEVELOPMEN COMPANY VS. DCIT 49 TAXMAN.COM98 (KARNATAKA HC), FILATEX INDIA LTD. VS. CIT 229 TAXMAN 555 (DELHI H C) SUNNY JACOB JEWELLERS AND WEDDING CENTRE, 362 ITR 66 4 (KERALA HC) AND CIT VS. CONTINENTAL WAREHOUSING CORPORATION 64 TAXMAN.COM 34(SC)?' XI) WHETHER THE HON'BLE CIT(A) WAS JUSTIFIED IN FOL LOWING THE DECISION OF THE HON'BLE DELHI HIGH COURT DATED 28.05.2015 IN THE CASE OF CIT VS KABUL CHAWLA, WHEN THE SAID DECISION WAS DISTINGUISHED IN THE REVENUE FAVO RING JUDGMENT OF THE HON'BLE DELHI HIGH COURT DATED 27.10.20 16 IN THE CASE OF SMT. DAYAWANTI THROUGH SMT. SUNITA GUPTA (L/H) VS CIT.' 4. DURING THE COURSE OF HEARING BEFORE US LD.DR FIL ED WRITTEN SUBMISSION ON THE ISSUE DATED 01/05/2018 STATING THEREIN THAT THE CIT(APPEALS) HAD ERRED IN DELETING THE ADDITION MERELY FOR THE REASON THAT NO INCRIMINATI NG MATERIAL WAS FOUND DURING THE COURSE OF SEARCH SINC E THE CIT(APPEALS) HAD FAILED TO VERIFY THE CONTENTION OF THE ASSESSEE. IT WAS CONTENDED BY THE LD.DR IN THE SUBM ISSIONS THAT IT WAS THE DUTY OF THE CIT(APPEALS) TO BRING O N RECORD THE ABOVE SAID CLINCHING FACTS. THE CONTENTS OF THE WRITTEN SUBMISSION AS FILED BEFORE US IS REPRODUCED HERE UN DER: THE SEARCH WAS CONDUCTED ON M/S STEEL STRIPS GROUP OF CASES ON 04.10.2012. AN ADDITION OF RS.20 LACS WAS MADE BY THE AO ON ACCOUNT OF UNEXPLAINED SHARE APPLICATION M ONEY U/S 68 OF THE ACT. THE CASE LAW M/S MALA BUILDERS PVT LTD VS ACIT ITA NO.433 TO 437/CHAD/2017 RELIED UPON BY THE CIT(A) IS ON DIFFERENT FOOTINGS I.E. RELATED TO SEC TION 24(B) OF THE ACT. MOREOVER, THE CIT(A) HAS FAILED TO VERIFY T HE CONTENTION OF THE ASSESSEE THAT NO INCRIMINATING DOCU MENTS HAVE BEEN FOUND AND SEIZED DURING SEARCH. IT WAS HIS DUTY TO BRING ON RECORD THE ABOVE SAID CLINCHING FACTS. 5 2. IN THE ABOVE CASE, IT IS HUMBLY SUBMITTED THAT THE FOLLOWING DECISIONS MAY KINDLY BE CONSIDERED WITH REGARD TO VALIDITY OF PROCEEDINGS U/S 153A: 1. E.N. GOPAKUMAR VS CIT [(2016) 75 TAXMANN.COM 215 (KERALA))! (COPY ENCLOSED) WHERE HON'BLE KERALA HIGH COURT HELD THAT ASSESSMENT PROCEEDINGS GENERATED BY ISSUANCE OF A NOTICE UNDER SECTION 153A(1)(A) CAN BE CONCLUDED AGAINST INTEREST OF ASSESSEE INCLUDING MAKING ADDITIONS EVEN WITHOUT ANY INCRIMINATING MATERIAL BEING AVAILABLE AGAINST ASSESSEE IN SEARCH UNDER SECTION 132 ON BASIS OF WHICH NOTICE WA S ISSUED UNDER SECTION 153A(1)(A). THE ABOVE ORDER HAS BEEN PASSED AFTER CONSIDERING CASES OF (I) CIT V. KABUL CHAWLA 120161 380 ITR 573/[2015J 234 TAXMAN 300/61 TAXMANN.COM 412 (DELHI) (PARA 4), (II) CIT V. CONTINENTAL WAREHOUSING CORPN. (NHAVA SHEVA ) LTD. [2015] 374 ITR 645/232 TAXMAN 270/58 TAXMANN.COM 78 (BOM.) (PARA 4), (III) PRINCIPAL CIT V. KURELE PAPER MILLS (P.) LTD. [2016] 38 0 ITR 571 (DELHI) (PARA 4), (IV) CIT V. LANCY CONSTRUCTIONS [2016] 383 ITR 168/237 TAXMAN 728/66 TAXMANN.COM 264 (KAR.) (PARA 4), (V) CIT V. ST. FRANCIES CLAY DECOR TILES [2016] 240 TAXMAN 168/70 TAXMANN.COM 234 (KER.) (PARA 5) AND (VI) CIT V. PROMY KURIAKOSE [2016] 386 ITR 597 (KER.) PA RA 5). CIT VS RAJ KUMAR ARORA R2014] 52 TAXMANN.COM 172 (ALLAHABAD)/R2014L 367 ITR 517 (ALLAHABAD) WHERE HON'BLE ALLAHABAD HIGH COURT HELD THAT ASSESSIN G OFFICER HAS POWER TO REASSESS RETURNS OF ASSESSEE N OT ONLY FOR UNDISCLOSED INCOME FOUND DURING SEARCH OPERATION BUT ALSO WITH REGARD TO MATERIAL AVAILABLE AT TIME OF ORIGINAL ASSES SMENT 3. CIT VS KESARWANI ZARDA BHANDAR SAHSON ALLD. FLTA NO. 270 OF 2014] (ALLAHABAD) WHERE HON'BLE ALLAHABAD HIGH COURT HELD THAT ASSESSIN G OFFICER HAS POWER TO REASSESS RETURNS OF ASSESSEE N OT ONLY FOR UNDISCLOSED INCOME FOUND DURING SEARCH OPERATION BUT ALSO WITH REGARD TO MATERIAL AVAILABLE AT TIME OF ORIGINAL ASSES SMENT 4. CIT VS ST. FRANCIS CLAV DECOR TILES (385 ITR 624 ) (COPY ENCLOSED) WHERE HON'BLE DELHI KERALA COURT HELD THAT NOTICE ISSU ED UNDER SECTION 153A -RETURN MUST BE FILED EVEN IF NO INCR IMINATING DOCUMENTS DISCOVERED DURING SEARCH 6 5. SMT DAVAWANTI VS CIT T20161 75 TAXMANN.COM 308 (DELHI)/R20171 245 TAXMAN 293 (DELHI)/F20171 390 IT R 496 (DELHI)/[2016L 290 CTR 361 (DELHI) (THOUGH STAV ED BY THE APEX COURT) WHERE HON'BLE DELHI HIGH COURT HELD THAT WHERE INFERE NCES DRAWN IN RESPECT OF UNDECLARED INCOME OF ASSESSEE W ERE PREMISED ON MATERIALS FOUND AS WELL AS STATEMENTS RECORDED BY ASSESSEE'S SON IN COURSE OF S EARCH OPERATIONS AND ASSESSEE HAD NOT BEEN ABLE TO SHOW AS TO HOW ESTIMATION MADE BY ASSESSING OFFICER WAS ARBITRAR Y OR UNREASONABLE, ADDITIONS SO MADE BY ASSESSING OFFICER B Y REJECTING BOOKS OF ACCOUNT WAS JUSTIFIED 6. CIT VS ANIL KUMAR BHATIA (24 TAXMANN.COM 98. 2 11 TAXMAN 453, 352 ITR 493) (COPY ENCLOSED) WHERE HON'BLE DELHI HIGH COURT HELD THAT JURISDICTION OF AO UNDER 153A IS TO .ASSESS TOTAL INCOME FOR THE YEAR AND NOT RESTRICTED TO SEIZED MATERIAL. POST SEARCH REASSESSME NT IN RESPECT OF ALL 6 YEARS CAN BE MADE EVEN IF ORIGINAL RE TURNS ARE ALREADY PROCESSED U/S 143(1)(A) - ASSESSING OFFICER HA S POWER U/S 153A TO MAKE ASSESSMENT FOR ALL SIX YEARS AND C OMPUTE TOTAL INCOME OF ASSESSEE, INCLUDING UNDISCLOSED INCOME , NOTWITHSTANDING THAT RETURNS FOR THESE YEARS HAVE AL READY BEEN PROCESSED U/S 143(1)(A). EVEN IF ASSESSMENT OR DER HAD ALREADY BEEN PASSED IN RESPECT OF ALL OR ANY OF THOSE SIX ASSESSMENT YEARS, EITHER UNDER SECTION 143(1)(A) OR SECTION 143(3) PRIOR TO INITIATION OF SEARCH/REQUISIT ION, STILL ASSESSING OFFICER IS EMPOWERED TO REOPEN THOSE PROC EEDINGS UNDER SECTION 153A WITHOUT ANY FETTERS AND REASSESS TOTAL INCOME TAKING NOTE OF UNDISCLOSED INCOME, IF ANY, UNE ARTHED DURING SEARCH. 7. FILATEX INDIA LTD VS CIT (49 TAXMANN.COM 465) (COPY ENCLOSED) WHERE HON'BLE DELHI HIGH COURT HELD THAT DURING ASSESSMENT UNDER SECTION 153A, ADDITIONS NEED NOT BE RESTRICTED OR LIMITED TO INCRIMINATING MATERIAL, FOUND, DURING COURSE OF SEARCH. 5. THEREAFTER LD.DR PLACED RELIANCE ON A NUMBER OF DECISIONS OF THE HIGH COURT STATING THAT EVEN IN TH E ABSENCE OF ANY INCRIMINATING MATERIAL FOUND DURING THE COUR SE OF SEARCH ADDITION U/S 153A COULD BE MADE IN THE CASE OF COMPLETED ASSESSMENT ALSO. AT THIS JUNCTURE THE LD. DR WAS ASKED TO PLACE ON RECORD WHAT INCRIMINATING MATERIA L WAS FOUND DURING THE COURSE OF SEARCH. IN RESPONSE LD.D R FILED 7 A LETTER OF THE DEPUTY COMMISSIONER OF INCOME TAX, CHANDIGARH, THE ASSESSING OFFICER IN THE PRESENT CA SE, THE CONTENTS OF WHICH ARE REPRODUCED HERE UNDER: GOVERNMENT OF INDIA INCOME TAX DEPARTMENT OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II,- ROOM NO. G02, C.R BUILDING, SECTOR 17-E, CHANDIGARH E-MAIL-CHANDIGARH.DCIT.CEN2@INCOMETAX.GOV.IN NO. DCIT/CC-II/CHD/2018-19/75 PHONE :0172-2701548 DATED 05.04.2018 TO THE INCOME TAX OFFICER(HQ) O/O COMMISSIONER OF INCOME TAX (DR) CHANDIGARH SIR, SUBJECT: APPEALS IN THE CASE OF M/S DHG MARKETING P VT. LTD., SCO 49-50, SEC-26, CHANDIGARH-A.Y. 2010-11- REG KINDLY REFER TO YOUR OFFICE LETTER NO. CIT-DR/ITAT-02/2017- 18/1578-1579 DATED 08.03.2018. 2. BRIEF FACTS OF THE CASE ARE THAT PURSUANT TO SEARCH & SEIZURE OPERATION U/S 132 OF THE I.T. ACT, 1961 CARRIED OUT ON THE ASSESSEE ON 04.10.2012, THE ASSESSMENT WAS COMPLETED U/S 153A( L)(B) R.W.S. 143(3) OF THE I.T. ACT, 1961 VIDE ASSESSMENT ORDE R DATED 23.03.2015 AT AN INCOME OF RS.4,15,00,000/- AGAINST NIL RETURNED INC OME. AS PER THE ASSESSMENT ORDER, ENQUIRIES REVEALED THAT THE COMPA NIES FROM WHOM MONEY WAS RECEIVED BY THE ASSESSEE EXISTED ONLY ON PAPER AND WERE SIMPLY ENTRY PROVIDERS. THESE COMPANIES HAD MINIMAL OR NEGLIGIBLE RETURNED INCOME. THE SHAREHOLDERS DID NOT HAVE ANY BUSINESS OF THEIR OWN. ALL CREDITS APPEARING IN THEIR BANK ACCOUNTS ORIGIN ATED FROM OTHER ACCOUNTS.. 3. FURTHER, AS PER THE ASSESSMENT ORDER THE ASSESSMENT IS NOT BASED ON ANY INCRIMINATING DOCUMENT FOUND DURING SEARCH. YOURS FAITHFULLY, SD/- (BANDANA DIWEDI) 6. LD.DR REFERRING TO THE ABOVE FAIRLY CONCEDED THA T NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH. LD. COUNSEL FOR THE ASSESSEE ON THE OTHER H AND SUPPORTED THE ORDER OF THE CIT( APPEAL). LD COUNSEL FOR THE ASSESSEE FURTHER RELIED ON THE ORDER OF THE ITAT C HANDIGARH 8 BENCH IN THE CASE OF DCIT VS M/S SCM FINTRADE PRIV ATE LIMITED IN ITA NO. 981 & 982/CHANDIGARH/2017 DATED 05.01.18 AND STATED THAT THE ISSUE IN THE SAID CASE WAS IDENTICAL TO THAT IN THE PRESENT CASE AS ALSO THE G ROUNDS RAISED BY THE REVENUE. LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO THE FINDINGS OF THE ITAT IN THE SA ID CASE AS UNDER: 5. WE HAVE HEARD THE CONTENTIONS OF BOTH THE PARTIES. WE DO NOT FIND ANY MERIT IN THE PRESENT APPEAL FILED BY THE REVENUE. THE FACTS VIS--VIS BOTH THE APPEAL THAT SEARCH ACTION WAS CARRIED OUT ON THE ASSESSEE ON 4.10.2012 AND AT THE TIME OF SEARCH ACTION NO ASSESSMENT OR RE-ASSESSMENT PROCEEDINGS WERE PENDING IS UNDISPUTED. IT IS ALSO NOT DISPUTED THAT NO INCRIMINATING DOCUMENTS OR RECORD OR ANY OTHER EVIDENCE WAS FOUND OR SEIZED DURING THE COURSE OF SEARCH PROCEEDINGS WHICH RESULTED IN ANY ADDITION IN THE CASE OF THE ASSESSEE. THEREFORE, THE LD.CIT(APPEALS), WE HOLD, HAS RIGHTLY DELETED THE ADDITION MADE FOLLOWING VARIOUS JUDICIAL PRONOUNCEMENTS IN THIS REGARD. FURTHER WE DO NOT FIND ANY MERIT IN THE CONTENTION OF THE LD. DR THAT THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF KABUL CHAWLA (SUPRA) HAS BEEN DISTINGUISHED IN THE CASE OF SMT.DAYAWANTI VS. CIT INN ITA NO.357/2015 & OTHERS DATED 27.10.2016, SINCE WE FIND THAT EVEN THIS ASPECT HAS BEEN DEALT WITH BY THE ITAT CHANDIGARH BENCH IN THE CASE OF M/S BHARATNET TECHNOLOGY LTD. (SUPRA) IN WHICH IT WAS OBSERVED THAT THE CASE OF SMT.DAYAWANTI (SUPRA) WAS SUBSEQUENTLY DISCUSSED BY THE HON'BLE DELHI HIGH COURT IN THE CASE OF PRINCIPAL CIT VS. MEETA GUTGUTIA PROP. M/S FERNS N PETALS IN ITA NO.306/2017 & OTHER DECISION VIDE ORDER DATED 25.5.2017, WHEREIN IT WAS HELD THAT IN THE CASE OF SMT.DAYAWANTI (SUPRA) INCRIMINATING MATERIAL WAS FOUND DURING SEARCH ACTION, HOWEVER, IN THE CASE OF PRINCIPAL CIT VS. MEETA GUTGUTIA PROP. M/S FERNS N PETALS NO INCRIMINATING MATERIAL WAS FOUND DURING SEARCH ACTION AND HENCE ADDITION MADE WAS NOT JUSTIFIED. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD.CIT(APPEALS) WHILE DELETING THE IMPUGNED ADDITIONS IN BOTH THE APPEALS FILED BY THE REVENUE. 9 7. LD. COUNSEL FOR THE ASSESSEE STATED THAT THE PRE SENT CASE WAS COVERED BY THE AFORESAID DECISION. 8. WE HAVE HEARD THE CONTENTIONS OF BOTH THE PARTIE S. WE DO NOT FIND MERIT IN THE PRESENT APPEAL FILED BY TH E REVENUE. THE FACT THAT A SEARCH WAS CONDUCTED ON TH E ASSESSEE ON 04-10-12 AND THE ASSESSMENT IN THE PRES ENT CASE, PERTAINING TO ASSESSMENT YEAR 10-11 WAS NOT P ENDING ON THE SAID DATE AND THUS HAD NOT ABATED, IS NOT DI SPUTED. IT IS ALSO AN ADMITTED FACT, AS NOTED ABOVE BY THE ASSESSING OFFICER OF THE ASSESSEE, THAT NO INCRIMINATING MATE RIAL WAS FOUND DURING THE COURSE OF SEARCH. IN THE BACKDROP OF SUCH FACTS THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF, KABUL CHAWLA(SUPRA) HAS BEEN RIGHTLY FOLLO WED BY THE LD.CIT (APPEAL), HOLDING THAT NO ADDITION COULD BE MADE IN SUCH CIRCUMSTANCES. THEREFORE THE LD. CIT( APPEA L), WE HOLD, HAS RIGHTLY DELETED THE ADDITION MADE IN THE PRESENT CASE FOLLOWING VARIOUS JUDICIAL PRONOUNCEMENTS IN T HIS REGARD. VIS A VIS THE GROUND RAISED BY THE REVENUE THAT THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CAS E OF KABUL CHAWLA HAS BEEN DISTINGUISHED IN THE CASE OF DAYAWANTI VS CIT IN ITA NO. 357/2015 AND OTHERS DAT ED 27/10/2016, WE FIND THAT THIS ASPECT HAS BEING DEAL T WITH BY THE ITAT IN THE CASE OF M/S SCM FINTRADE PRIVATE LIMITED (SUPRA) WHEREIN IT HAS BEEN HELD THAT THE CASE OF DAYAWANTI (SUPRA) WAS SUBSEQUENTLY DISCUSSED BY THE HONBLE D ELHI HIGH COURT IN THE CASE OF PR. CIT VS MEETA GUTGUTIA , PROPRIETOR, M/S FERNS & PETALS IN ITA NO. 306/2017 AND 10 OTHERS, VIDE ORDER DATED 25/05/2017, WHEREIN IT WAS HELD THAT IN THE CASE OF DAYAWANTI(SUPRA), INCRIMINATING MATERIAL WAS FOUND DURING SEARCH ACTION WHILE IN THE CASE OF PR. CIT VS MEETA GUTGUTIA(SUPRA) NO INCRIMINATING MATERIAL WAS FOUND DURING SEARCH ACTION AND ADDITION WAS NOT JUS TIFIED IN VIEW OF THE ABOVE. IN VIEW OF THE ABOVE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT( APPEAL) DELE TING THE IMPUGNED ADDITION. 9. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 9 TH MAY, 2018 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH
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