DCIT, CC-II, Chandigarh V. M/s Chandigarh Developers Pvt. Ltd., Chandigarh

ITA 994/CHANDI/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9760 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 14-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GULSHAN RAJ
• Keywords: Unexplained cash credit; Accommodation entries; Assessment record
• Section: 143(3); 133A; 153A; 68; 132

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.994/CHD/2017 (ASSESSMENT YEAR : 2010-11) THE D.C.I.T., VS. M/S CHANDIGARH DEVELOPERS PVT. LTD., CENTRAL CIRCLE-II, SCO 49-50, SECTOR 26, CHANDIGARH. CHANDIGARH. PAN: AADCC6359G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GULSHAN RAJ, CIT DR RESPONDENT BY : SHRI ASHWANI KUMAR, CA DATE OF HEARING : 09.08.2018 DATE OF PRONOUNCEMENT : 24.09.2018 ORDER PER ANNAPURNA GUPTA, A.M. : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(AP PEALS)- 3, GURGAON [HEREINAFTER REFERRED TO AS CIT(APPEALS) ], DATED 31.03.2017, RELATING TO ASSESSMENT YEAR 2010-11. 2. THE DEPARTMENT IS AGGRIEVED BY THE ACTION OF THE LD.CIT(APPEALS) IN DELETING THE ADDITION MADE BY TH E ASSESSING OFFICER ON ACCOUNT OF UNSECURED LOANS OF RS.1 CRORE, AS UNEXPLAINED CREDIT UNDER SECTION 68 OF TH E INCOME TAX ACT, 1961 (IN SHORT THE ACT). 3. BRIEFLY STATED, SEARCH & SEIZURE OPERATION, UNDE R SECTION 132 OF THE ACT, WAS CARRIED OUT AT THE PREM ISES OF THE ASSESSEE ON 04.10.2012. IN THE ASSESSMENT FRAM ED ITA NO.994/CHD/2017 A.Y. 2010-11 2 THEREAFTER ,PURSUANT TO THE SEARCH CARRIED OUT AT T HE ASSESSEES PREMISES, ADDITION U/S 68 OF THE ACT WA S MADE OF RS.1 CRORE, RECEIVED AS SHARE APPLICATION MONEY FROM M/S RSM METALS LTD. AND M/S OCTAMAC SOFTWARE PRIVATE LT D., BEING RS.50 LACS EACH, TREATING THE SAME AS UNEXPLA INED. THE CIT(APPEALS) DELETED THE ADDITIONS SO MADE FOR THE REASON THAT NO INCRIMINATING MATERIAL WAS FOUND DUR ING THE COURSE OF SEARCH. THE LD.CIT(APPEALS) HELD THAT AT THE TIME OF SEARCH PROCEEDINGS, ASSESSMENTS FOR THE IMPUGNED YEAR WERE NOT PENDING AND HAD, THEREFORE, NOT ABATED. HE FURTHER FOUND THAT NO INCRIMINATING MATERIAL OR EVIDENCE WA S FOUND AND SEIZED DURING THE COURSE OF SEARCH, NOR ANY ADD ITION MADE EMANATING OUT OF THE SEARCH PROCEEDINGS. THERE FORE, RELYING ON VARIOUS JUDICIAL DECISIONS, THE LD.CIT(A PPEALS) HELD THAT THE IMPUGNED ADDITIONS COULD NOT HAVE BEE N MADE IN THE FACTS OF THE PRESENT CASE IN THE ORDER PASSE D U/S 153A OF THE ACT. THE LD.CIT(APPEALS) RELIED UPON TH E DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF M/S MALA BUILDERS PVT. LTD. VS. ACIT IN ITA NOS. 433 TO 437/CHD/2017 ,WHEREIN THE TRIBUNAL HAD FURTHER RELI ED UPON THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. M/S MURLI AGRO PRODUCTS PVT. LTD. I N ITA NO.36 OF 2009 AND IN THE CASE OF CIT VS. KABUL CHAW LA, 234 TAXMAN 300 (DELHI) IN WHICH THE HON'BLE HIGH COURT HAD UNANIMOUSLY HELD THAT IN THE ABSENCE OF ANY INCRIMI NATING MATERIAL FOUND DURING THE COURSE OF SEARCH ACTION, WHEN THERE WAS NO PENDING ASSESSMENT WHICH COULD BE SAID TO ITA NO.994/CHD/2017 A.Y. 2010-11 3 HAVE ABATED ON THE DATE OF SEARCH, THE ADDITION COU LD NOT HAVE BEEN MADE. 4. BEFORE US, THE LD. COUNSEL FOR ASSESSEE PLACED C OPY OF THE ORDER PASSED BY ITAT CHANDIGARH BENCH IN THE CA SE OF DCIT VS. M/S BHARAT NET TECHNOLOGY LTD. IN ITA NOS. 983 & 984/CHD/2017 DATED 13.11.2017, AND STATED THAT THE PRESENT APPEAL IS SQUARELY COVERED BY THE AFORESAID DECISION OF THE TRIBUNAL WHEREIN THE FACTS WERE IDENTICAL AN D EVEN IDENTICAL GROUNDS HAD BEEN RAISED BY THE REVENUE IN ITS APPEAL. 5. THE LD. DR WHEN CONFRONTED WITH THE FINDINGS OF THE CIT(APPEALS), FAIRLY ADMITTED THAT NO INCRIMINATING MATERIAL WAS FOUND DURING THE SEARCH AND THE ORIGINAL ASSESS MENT PROCEEDINGS STOOD COMPLETED ON THE DATE OF SEARCH. THE LD. DR WAS ASKED TO CONFIRM FROM THE CONCERNED ASSESSIN G OFFICER AS TO WHAT INCRIMINATING MATERIAL WAS FOUND DURING SEARCH. IN RESPONSE THE LD. DR FILED COPY OF THE RE PLY RECEIVED FROM THE ASSESSING OFFICER DATED 29.3.2018 AS UNDER: KINDLY REFER TO YOUR OFFICE LETTER NO. CIT(DR)/ITAT02/2017-18/1609 DATED 15.03.2018 ON THE ABOVE CITED SUBJECT. 2. BRIEF FACTS OF THE CASE ARE THAT PURSUANT TO SEARCH 8S SEIZURE OPERATION U/S 132 OF THE I.T. ACT, 1961 CAR RIED 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,1961VIDE ASSESSMENT ORDER DATED 23.03.2015 AT AN INCOME OF RS.1,00,00,000/- AGAINST NIL RETURNED INCOME. 3. ADDITION OF RS.1,00,00,000/- WAS MADE U/S 68 OF THE I.T. ACT,1961 AS IT WAS FOUND THAT THE STEEL STRIPS GR OUP WAS RESORTING TO SYSTEMATIC RE-INTRODUCTION OF ITA NO.994/CHD/2017 A.Y. 2010-11 4 UNACCOUNTED BLACK MONEY INTO THE REGULAR BOOKS OF ACCOUNTS IN THE FORM OF SHARE CAPITAL, SHARE PREMIU M AND UNSECURED LOAN. THE GROUP CREATED COMPANIES CONTROL LED BY ITS EMPLOYEES AS DIRECTORS, THE ASSESSEE IS ONE OF SUCH COMPANIES. THE ASSESSEE RECEIVED HUGE SHARE CAPITAL , SHARE PREMIUM AND LOANS FROM A THIRD LAYER OF ENTRY PROVIDER COMPANY WHICH DID NOT HAVE THE WHEREWITHAL AND THE ECONOMIC REASONS PRUDENCE TO INVEST HEAVY AMOUNTS I N PAPER COMPANIES. THE ASSESSEE HAD RECEIVED CREDITS IN ITS BANK ACCOUNT TOTALING TO RS.1,00,00,000/- FROM M/S RSM METALS LTD. AND M/S OCTOMAC SOFTWARES PVT. LTD. (AF TER LAYERING THROUGH SHRI SHAMAN JINDAL, AN EMPLOYEE OF STEEL STRIPS GROUP) RESPECTIVELY. THESE COMPANIE S HAD RECEIVED SHARE CAPITAL INCLUDING SHARE PREMIUM FROM PAPER COMPANIES. 5. M/S RSM METALS LTD. CAME INTO EXISTENCE DURING THE YEAR WITH THE EMPLOYEES OF THE GROUP LIKE SHRI H.K. SEHGAL, BHAGWAN DASS SHARMA, SHARMAN JINDAL AND BHAVNESH GUPTA AS DIRECTORS. M/S APOORVA LEASING FINANCE COMPANY LTD. AND M/S SUNITA SECURITIES PVT. LTD. PURCHASED 4000 SHARES OF THE COMPANY AT A PREMIUM O F RS.499 PER SHARE. M/S APOORVA LEASING FINANCE COMPANY LTD. HAD SHOWN ITS REGISTERED OFFICE AS THE ADDRESS OF SHRI S.K. JAIN, A KNOWN ENTRY PROVIDER. A SEARCH WAS CONDUCTED ON SHRI S.K. JAIN ON 14.09.201 0, WHEREIN ON THE BASIS OF INCRIMINATING DOCUMENTS FOU ND, IT COULD BE REASONABLY CONCLUDED THAT M/S APOORVA LEASING FINANCE COMPANY WAS ONLY A PAPER CONCERN INVOLVED IN PROVIDING ACCOMMODATION ENTRIES IN THE FORM OF SHARE CAPITAL AND SHARE PREMIUM. 6. M/S OCTOMAC SOFTWARES PVT. LTD. ALSO CAME INTO EXISTENCE DURING THE YEAR WITH THE EMPLOYEES OF THE GROUP LIKE SHRI M.L. JAIN, SHRI B.D. SHARMA AND BHAVNESH GUPTA AS DIRECTORS. THIS COMPANY HAD ALSO INTRODUCE D UNACCOUNTED MONEY OF STEEL STRIPS GROUP THROUGH ISS UE OF SHARES AT A HUGE PREMIUM TO PAPER CONCERNS M/S PORTER BUILDCON PVT. LTD. AND M/S ABHAY HOLDINGS PVT. LTD. SHRI SHAMAN JINDAL RECEIVED MONEY FROM M/S OCTOMAC SOFTWARES PVT. LTD ., WHICH WAS INTRODUCED IN THE BOOKS OF THE ASSESSEE THROUGH HIM. 7. THE BALANCE SHEET OF THE ASSESSEE FOR THE A.Y.2012-13WASSEIZEDFROMTHE PREMISES OF M/S STEEL STRIPS WHEELS LTD., SCO 49-50, SECTOR 26D, CHANDIGARH (PAGE 26 TO 40 OF ANNEXUREA-6), COPY OF THE SAME IS ENCLOSED HEREWITH. THE SAID BALANCE SHE ET SHOWS LOANS OF RS.1,30,10,000/- FROM M/S RSM METALS LTD. THUS, THIS IS AN INCRIMINATING DOCUMENT SHOWING TRANSACTION IN THE BOOKS OF THE COMPANY FRO M M/S RSM METALS LTD. 8. FURTHER, A SURVEY WAS CONDUCTED U/S 133A OF THE I.T. ACT, 1961ON SHRI BHAVNESH GUPTA ON ITA NO.994/CHD/2017 A.Y. 2010-11 5 04.10.2012. HE IS A DIRECTOR IN M/S RSM METALS LTD. AND M/S OCTOMAC SOFTWARES PVT. LTD. HIS STATEMENT WAS RECORDED ON OATH ON 04.10.2012, WHEREIN HE HAS ADMITTED THAT THESE COMPANIES ARE SUITCASE COMPANIES WITH DUMMY DIRECTORS AND DUMMY REGISTERED OFFICE AND IT IS ALSO CONTROLLED BY PROM OTER DIRECTOR OF THE STEEL STRIPS GROUP THROUGH THEIR TR USTED AIDES. 9. NEEDLESS TO ADD THAT AS HAS BEEN MENTIONED IN THE ASSESSMENT ORDER, INCRIMINATING DOCUMENTS WERE FOUN D DURING THE COURSE OF SEARCH ON AN ENTRY PROVIDER SH RI S.K. JAIN, WHICH INDICATED THAT COMPANIES MANAGED B Y HIM INCLUDING M/S APOORVA LEASING AND FINANCE WAS A PAPER COMPANY. 10. IN VIEW OF THE FACTS STATED ABOVE, THE ADDITION HAS BEEN MADE ON THE BASIS OF INCRIMINATING DOCUMENTS F OUND DURING SEARCH. 11. AS DESIRED, THE REVISED GROUNDS OF APPEAL ARE ALSO ENCLOSED HEREWITH. 6. REFERRING TO THE SAME THE LD. DR STATED THAT TH E ONLY INCRIMINATING MATERIAL FOUND WAS BALANCE SHEET OF T HE ASSESSEE RELATING TO ASSESSMENT YEAR 2012-13,I.E TH E SUCCEEDING A.Y, SHOWING LOAN RECEIVED FROM M/S RSM METALS. THE CASE WAS THEREAFTER HEARD ON 10/04/18.THEREAFTER THE CASE WAS FIXED FOR SEEKING FURTHER CLARIFICATION FROM THE LD.DR AS TO HOW THE DOCUMENT STATED BY THE AO IN HIS LETTER DT.20-03-18, CONSTITUTED INCRIMINATING MATERIAL IN THE PRESENT CASE. FURTHER OPPORTUNITY WAS GIVEN TO THE LD. DR TO MAKE SUBMISSIONS IN THIS REGARD WHEN FINALLY ON 09-08-18 , THE LD. DR CATEGORICALLY STATED AT BAR THAT HE HAD GONE THROUGH THE ASSESSMENT RECORDS OF THE ASSESSEE PERTAINING TO THE IMPUGNED YEAR AND WAS UNABLE TO F IND ANY DOCUMENT ,OTHER THAN BALANCE SHEET OF THE ASSES SEE FOR THE SUCCEEDING YEAR AS REFERRED BY THE ASSESSIN G OFFICER IN THE ABOVE LETTER. THE LD. DR STAT ED THAT ITA NO.994/CHD/2017 A.Y. 2010-11 6 HE HAD GONE THROUGH ALL THE DOCUMENTS RELATING TO T HE INQUIRIES MADE BY THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS AND FOUND NO REFERENCE TO AN Y DOCUMENT UNEARTHED DURING SEARCH RELATING TO THE IS SUE ON WHICH ADDITION HAD BEEN MADE & WHICH WAS CONFRONTED TO THE ASSESSEE. AT THE SAME THE LD. DR AGREED THAT TH OUGH THE ISSUES STOOD COVERED BY THE ORDER OF THE I.T.A. T. IN THE CASE OF M/S BHARAT NET TECHNOLOGY(SUPRA), HE RELIED ON HIS SUBMISSIONS ON THE ISSUE MADE IN WRITING AS UNDER : THE SEARCH U/S 132 WAS CONDUCTED ON THE PREMISES O F M/S STEEL STRIPS GROUP OF CASES ON 04.10.2012. ADDITIONS WERE MADE BY THE AO UNDER THE HEAD UNEXPLAINED CREDITS U /S 68 OF THE ACT. THE CIT (A) HAS DEALT WITH THIS ISSUE AT PARAS 5 PAGES 24 TO 31 OF HIS ORDER. THE CASE LAW M/S MALA BUILDE RS PVT LTD VS ACIT ITA NO.433 TO 437/CHAD/2017 RELIED UPON BY THE CIT (A) IS ON DIFFERENT FOOTINGS I.E. RELATED T O SECTION 24(B) OF THE ACT. MOREOVER, THE CIT(A) HAS FAILED TO VERIFY T HE CONTENTION OF THE ASSESSEE THAT NO INCRIMINATING DOC UMENTS HAVE BEEN FOUND AND SEIZED DURING SEARCH. IT WAS HI S DUTY TO BRING ON RECORD THE ABOVE SAID CLINCHING FACTS. 2. IN THE ABOVE CASE, IT IS HUMBLY SUBMITTED THAT THE FOLLOWING DECISIONS MAY KINDLY BE CONSIDERED WITH REGARD TO VA LIDITY OF PROCEEDINGS U/S 153A: 1. E.N. GOPAKUMAR VS CIT [F(2016) 75 TAXMANN.COM 215 (KERALA)) (COPY ENCLOSED) (PAGE NO.1 TO 4 OF ANNEXURE) 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 ASS ESSEE INCLUDING MAKING ADDITIONS EVEN WITHOUT ANY INCRIMINAT ING MATERIAL BEING AVAILABLE AGAINST ASSESSEE IN SEARCH U NDER SECTION 132 ON BASIS OF WHICH NOTICE WAS ISSUED UND ER SECTION 153A(1)(A). THE ABOVE ORDER HAS BEEN PASSED AFTER CONSIDERING C ASES OF (I) CIT V. KABUL CHAWLA [2016] 380 ITR 573/[2015L 23 4 TAXMAN 300/61 TAXMANN.COM 412 (DELHI) (PARA 4), (II) CIT V. CONTINENTAL WAREHOUSING CORPN. (NHAVA SHE VA) LTD. [2015] 374 ITR 645/232 TAXMAN 270/58 TAXMANN.COM 78 (BOM.) (PARA 4) ITA NO.994/CHD/2017 A.Y. 2010-11 7 (III) PRINCIPAL CIT V. KURELE PAPER MILLS (P.) LTD. [201 6] 380 ITR 571 (DELHI) (PARA 4), (IV) CIT V. LANCY CONSTRUCTIONS [2016] 383 ITR 168/2 37 TAXMAN TAXMANN.COM 264 (KAR.) (PARA 4), (V) CIT V. ST. FRANCIES CLAY DECOR TILES [2016] 24 0 TAXMAN 168/70 TAXMANN.COM 234 (KER.) (PARA 5) AND (VI) CIT V. PROMY KURIAKOSE [2016] 386 ITR 597 (KER.) (PARA 5). 2. CIT VS RAI KUMAR ARORA F20141 52 TAXMANN.COM 172 ALLAHABAD)/R20141 367 ITR 517 (ALLAHABAD) (PAGE NO.5 TO 17 OF ANNEXURE) WHERE HON'BLE ALLAHABAD HIGH COURT HELD THAT ASSESS ING 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 ASS ESSMENT 3. CIT VS KESARWANI ZARDA BHANDAR SAHSON ALLD. [ITA NO. 270 OF 20141 (ALLAHABAD) (PAGE NO.18 TO 23 OF ANNEXURE) WHERE HON'BLE ALLAHABAD HIGH COURT HELD THAT ASSESS ING 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 ASS ESSMENT 4. CIT VS ST. FRANCIS CLAY DECOR TILES (385 ITR 624 ) (COPY ENCLOSED) (PAGE NO.24 TO 31 OF ANNEXURE) WHERE HON'BLE DELHI KERALA COURT HELD THAT NOTICE ISS UED UNDER SECTION 153A -RETURN MUST BE FILED EVEN IF NO INCRIM INATING DOCUMENTS DISCOVERED DURING SEARCH 5. SMT DAVAWANTI VS CIT F20161 75 TAXMANN.COM 308 (DELHI)/[2017/ 245 TAXMAN 293 (DELHI)/[2017] 390 IT R 496 (DELHI)/[20161 290 CTR 361 (DELHI) (THOUGH STAY ED BY THE APEX COURT) (PAGE NO.32 TO 44 OF ANNEXURE) WHERE HON'BLE DELHI HIGH COURT HELD THAT WHERE INFE RENCES DRAWN IN RESPECT OF UNDECLARED INCOME OF ASSESSEE W ERE PREMISED ON MATERIALS FOUND AS WELL AS STATEMENTS RECOR DED BY ASSESSEE'S SON IN COURSE OF SEARCH OPERATIONS AND A SSESSEE HAD NOT BEEN ABLE TO SHOW AS TO HOW ESTIMATION MADE BY ASSESSING OFFICER WAS ARBITRARY OR UNREASONABLE, AD DITIONS SO MADE BY ASSESSING OFFICER BY REJECTING BOOKS OF ACC OUNT WAS JUSTIFIED ITA NO.994/CHD/2017 A.Y. 2010-11 8 6. CIT VS ANIL KUMAR BHATIA (24 TAXMANN.COM 98, 211 TAXMAN 453, 352 ITR (493) (COPY ENCLOSED) (PAGE NO.45 TO 56 OF ANNEXURE) WHERE HON'BLE DELHI HIGH COURT HELD THAT JURISDICTION OF AO UNDER 153A IS TO ASSESS TOTAL INCOME FOR THE YEAR AN D NOT RESTRICTED TO SEIZED MATERIAL. POST SEARCH REASSESSME NT IN RESPECT OF ALL 6 YEARS CAN BE MADE EVEN IF ORIGINAL RETURNS ARE ALREADY PROCESSED U/S 143(1)(A) - ASSESSING OFFICER HAS POWER U/S 153A TO MAKE ASSESSMENT FOR ALL SIX YEARS AND COMPUTE TOTAL INCOME OF ASSESSEE, INCLUDING UNDISCL OSED INCOME, NOTWITHSTANDING THAT RETURNS FOR THESE YEAR S HAVE ALREADY BEEN PROCESSED U/S 143(1)(A). EVEN IF ASSES SMENT ORDER 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/REQUISITION, STIL L ASSESSING OFFICER IS EMPOWERED TO REOPEN THOSE PROCEE DINGS UNDER SECTION 153A WITHOUT ANY FETTERS AND REASSESS TOTAL INCOME TAKING NOTE OF UNDISCLOSED INCOME, IF ANY, U NEARTHED DURING SEARCH. 7. FILATEX INDIA LTD VS CIT (49 TAXMANN.COM 465) ( COPY ENCLOSED) (PAGE NO.57 TO 61 OF ANNEXURE) WHERE HON'BLE DELHI HIGH COURT HELD THAT DURING ASS ESSMENT UNDER SECTION 153A, ADDITIONS NEED NOT BE RESTRICTE D OR LIMITED TO INCRIMINATING MATERIAL, FOUND DURING COURSE OF RES EARCH. 7. WE HAVE HEARD THE RIVAL CONTENTIONS. WE FIND NO REASON TO INTERFERE IN THE ORDER OF THE CIT(APPEALS) WHO H AS DELETED THE ADDITIONS MADE IN THE IMPUGNED CASE ON FINDING THAT THE SAME WAS NOT BASED ON ANY INCRIMINATING MATERIAL FO UND DURING THE COURSE OF SEARCH AND ASSESSMENT FOR THE IMPUGNED YEAR HAD NOT ABATED. THE FACT THAT NO INCRIMINATING MATERIAL WAS FOUND HAS BEEN ADMITTED AT BAR BY THE LD. DR BEFORE US. THE ONLY DOCUMENT POINTE D OUT BY THE REVENUE, WE FIND, IS A BALANCE SHEET THAT TOO P ERTAINING TO THE SUCCEEDING YEAR AND WHICH THROWS NO LIGHT AB SOLUTELY ON THE FACTS LEADING TO ADDITIONS MADE IN THE IMPUG NED YEAR ON ACCOUNT OF SHARE APPLICATION MONEY OF RS.50 LAKH S RECEIVED FROM M/S RSM METALS AND M/S. OCTOMAC SOFTW ARE ITA NO.994/CHD/2017 A.Y. 2010-11 9 PVT. LTD. THE SAID DOCUMENT, WE FIND, REFLECTS ONLY SOME UNSECURED LOANS TAKEN BY THE ASSESSEE FROM THE TWO COMPANIES THAT TOO IN THE SUCCEEDING YEAR ONLY AND NOT IN THE IMPUGNED YEAR. THEREFORE IT IS AN ADMITTED FACT THAT NO INCRIMINATING MATERIAL WAS FOUND DURING SEARCH COND UCTED ON THE ASSESSEE. THE FACT THAT THE ASSESSMENT FOR T HE IMPUGNED YEAR HAS NOT ABATED IS ALSO AN UNDISPUTED FACT. IN VIEW OF THE SAME WE HOLD THAT THE LD. CIT(APPEALS) HAS RIGHTLY DELETED THE ADDITIONS MADE FOLLOWING THE PR OPOSITION LAID DOWN BY HONBLE DELHI HIGH COURT IN CASE OF KA BUL CHAWLA (SUPRA), THAT NO ADDITION TO BE MADE IN ASSE SSMENT FRAMED U/S 153A OF THE ACT IN ABSENCE OF ANY INCRIM INATING MATERIAL, WHERE ASSESSMENTS WERE NOT ABATED. THE GR OUNDS RAISED BY THE REVENUE TO THE EFFECT THAT THE DECISI ON OF THE HONBLE DELHI HIGH COURT IN THE CASE OF KABUL CHAWL A HAS BEEN DISTINGUISHED IN THE CASE OF SMT. DAYAWANTI VS . CIT IN ITA NO.357/2015 DATED 27.10.2016, HAS BEEN DEALT WI TH BY ITAT IN THE CASE OF BHARAT NET TECHNOLOGY(SUPRA), W HEREIN IT HAS BEEN NOTED THAT THE DECISION IN THE CASE OF DAY AWANTI (SUPRA|) HAD BEEN DISCUSSED IN THE SUBSEQUENT DECIS ION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF PR CIT V/S MEETA GUTGUTIA PROPRIETOR M/S. FERN N PETALS ITA NO. 30 6/2017 AND OTHERS DATED 25.05.2017, WHEREIN IT WAS OBSERVE D THAT INCRIMINATING MATERIAL WAS FOUND IN THAT CASE, HOWE VER IN THE CASE OF MEETA GUTGUTIA (SUPRA), NO INCRIMINATIN G MATERIAL WAS FOUND AND HENCE ADDITIONS MADE WERE NO T JUSTIFIED. THE SAME HAS REMAINED UNCONTROVERTED BEF ORE US. ITA NO.994/CHD/2017 A.Y. 2010-11 10 IN VIEW OF THE ABOVE WE DO NOT FIND ANY INFIRMITY I N THE ORDER OF THE CIT(APPEALS) IN DELETING THE IMPUGNED ADDITIONS. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE, TH EREFORE, DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :24 TH SEPTEMBER, 2018 *RATI*/PK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH