M/s. Bindyavasini Projects Pvt. Ltd., , Kolkata V. DCIT, Central Circle - 4(3), , Kolkata

ITSSA 102/KOL/2018

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2674 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 25-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-06-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 13-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 32; 132; 153A

Judgement Text

IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Sanjay Garg, Judicial Member & Shri Girish Agrawal, Accountant Member I.T.(S.S.)A. Nos. 102 & 103/KOL/2018 Assessment Years: 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited,.........................................Appellant 21, Centre Point, Hemant Basu Sarani, Kolkata-700001 [PAN: AACCB5764H] -Vs.- Deputy Commissioner of Income Tax,................................................Respondent Central Circle-4(3), Kolkata Appearances by: Sri Somnath Ghosh, Advocate, appeared on behalf of the assessee Shri Avijit Kundu, CIT, appeared on behalf of the Revenue Date of concluding the hearing : July 14, 2022 Date of pronouncing the order: September 26, 2022 O R D E R Per Girish Agrawal, Accountant Member:- T h e p r e s e n t t w o a p p e a l s f i l e d b y t h e a s s e s s e e a r e ag a i n s t t h e o r d e r o f l d . C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) - 2 1 , K o lk a t a v i d e A p p e a l N o s . 1 0 6 6 1 & 1 0 6 7 5 / D C I T , C C - 4 ( 3 ) / C I T ( A ) - 2 1 / K O L / 2 0 1 7 -1 8 d a t e d 2 7 t h J u l y , 2 0 1 8 f o r A . Y s . 2 0 1 0 - 1 1 a n d 2 0 1 1 - 1 2 a g a i n s t t he a s s e s s m e n t o r d e r f o r t w o y e a r s p a s s e d b y t h e l d . D C I T , C e n t r a l C i r c le - 4 ( 3 ) , K o l k a t a u n d e r s e c t i o n 1 5 3 A / 1 4 3 ( 3 ) o f t h e I n c o m e T a x A c t , 1 9 6 1 ( h er e i n a f t e r r e f e r r e d t o a s t h e ‘ A c t ’ ) d a t e d 2 8 . 1 2 . 2 0 1 7 . 2 . I n b o t h t h e a p p e a l s , t h e g r o u n d s t a k e n b y t h e a ss e s s e e a r e i d e n t i c a l e x c e p t f o r v a r i a t i o n i n t h e q u a n t u m o f a d d i t i o n s m ad e . T h e i s s u e i n v o l v e d i n t h e s e t w o a p p e a l s r e l a t e s t o t h e a d d i t i o n m a d e in r e s p e c t o f s h a r e c a p i t a l a n d s h a r e p r e m i u m a m o u n t i n g t o R s . 3 , 8 5 , 0 0 , 00 0 / - f o r A . Y . 2 0 1 0 - IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 2 1 1 a n d R s . 6 0 , 0 0 , 0 0 0 / - f o r A . Y . 2 0 1 1 - 1 2 . T h e s e c o n d i s s u e r e l a t e s t o t h e d i s a l l o w a n c e m a d e u n d e r s e c t i o n 1 4 A o f t h e A c t a m o un t i n g t o R s . 4 , 9 8 , 9 7 0 / - f o r A . Y . 2 0 1 0 - 1 1 a n d R s . 2 9 , 1 4 6 / - f o r A . Y . 2 0 1 1 - 1 2 . T h e m o o t p o i n t r a i s e d b y t h e a s s e s s e e i n r e s p e c t o f t h es e a d d i t i o n s i s t h a t t h e i m p u g n e d a s s e s s m e n t y e a r s a r e u n a b a t e d y e a r s , w h e r e n o i n c r i m i n a t i n g m a t e r i a l w e r e f o u n d d u r i n g t h e c o u r s e o f s e a r c h i n r e s p e c t o f t h e a d d i t i o n s s o m a d e a n d , t h e r e f o r e , a r e l i a b l e t o b e d e l e t e d . 3 . F o r t h e s a k e o f c o n v e n i e n c e , w e t a k e u p t h e m a t te r r e l a t i n g t o A . Y . 2 0 1 0 - 1 1 a n d t h e f i n d i n g s a r r i v e d i n r e s p e c t o f t h i s y e a r w i l l a p p l y mutatis mutandis t o o t h e r a p p e a l f o r A . Y . 2 0 1 1 - 1 2 . 4 . T h e a s s e s s e e i n t h e p r e s e n t c a s e i s a C o m p a n y , wh i c h b e l o n g s t o B h a l o t i a G r o u p . A s e a r c h a n d s e i z u r e a c t i o n u n d e r se c t i o n 1 3 2 w a s c o n d u c t e d o n 0 1 . 1 2 . 2 0 1 5 i n t h e c a s e s b e l o n g i n g t o Bh a l o t i a G r o u p i n c l u d i n g t h e c a s e o f t h e a s s e s s e e . I n p u r s u a n t t o t h e s a i d a c t i o n , n o t i c e u n d e r s e c t i o n 1 5 3 A w a s i s s u e d b y t h e A s s e s s i n g O f f ic e r , i n r e s p o n s e t o w h i c h t h e r e t u r n o f i n c o m e f o r t h e y e a r u n d e r c o n s id e r a t i o n w a s f i l e d b y t h e a s s e s s e e o n 1 6 . 0 2 . 2 0 1 7 d e c l a r i n g t h e s a m e t o t a l i n c o m e o f R s . 1 2 , 6 1 , 3 0 5 / - a s d e c l a r e d i n t h e r e t u r n o f i n c o m e o r i g i n a l l y f i l e d o n 1 3 . 1 0 . 2 0 1 0 u n d e r s e c t i o n 1 3 9 o f t h e A c t . D u r i n g t h e c o u r s e o f s e a r c h a n d s e i z u r e a c t i o n , c e r t a i n B a n k a c c o u n t s w e r e f o u n d w hi c h r e v e a l e d t h a t t h e a s s e s s e e - c o m p a n y h a d r e c e i v e d s h a r e a p p l i c a t i o n m o ne y o f R s . 3 , 8 5 , 0 0 , 0 0 0 / - d u r i n g t h e y e a r u n d e r c o n s i d e r a t i on . D u r i n g t h e c o u r s e o f a s s e s s m e n t p r o c e e d i n g s , t h e a s s e s s e e w a s c a l l e d u p o n b y t h e A s s e s s i n g O f f i c e r t o p r o v e t h e i d e n t i t y a n d c a p a c i t y o f t h e co n c e r n e d s h a r e a p p l i c a n t s a s w e l l a s t h e g e n u i n e n e s s o f t h e r e l e v an t t r a n s a c t i o n s . N o t i c e s u n d e r s e c t i o n 1 3 1 w e r e a l s o i s s u e d b y t h e As s e s s i n g O f f i c e r t o t h e s h a r e s u b s c r i b e r s f o r c r o s s e x a m i n a t i o n . T h e s ai d n o t i c e s , h o w e v e r , e i t h e r r e t u r n e d u n - s e r v e d o r r e m a i n e d u n - c o m p l i e d wi t h . T h e a s s e s s e e a l s o c o u l d n o t p r o d u c e t h e c o n c e r n e d s h a r e a p p l i c a nt s f o r e x a m i n a t i o n b e f o r e t h e A s s e s s i n g O f f i c e r w h e n a n o p p o r t u n i t y i n t h i s r e g a r d w a s g i v e n IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 3 t o t h e a s s e s s e e b y t h e A s s e s s i n g O f f i c e r . I n t h e w ri t t e n s u b m i s s i o n m a d e o n 2 2 . 1 2 . 2 0 1 7 , i t w a s s t a t e d b y t h e a s s e s s e e t h a t th e c o n c e r n e d s h a r e a p p l i c a n t s c o u l d n o t a p p e a r b e f o r e t h e A s s e s s i n g O ff i c e r b e c a u s e o f s o m e i n c o n v e n i e n c e . I t w a s a l s o s u b m i t t e d t h a t t h e t r a n sa c t i o n s i n v o l v i n g t h e p a y m e n t o f s h a r e a p p l i c a t i o n m o n e y w e r e r o u t e d t h r ou g h b a n k i n g c h a n n e l a n d t h e c o p i e s o f B a n k s t a t e m e n t s o f s h a r e a p p l i c a n t s w e r e p r o d u c e d b e f o r e t h e A s s e s s i n g O f f i c e r t o s u p p o r t a nd s u b s t a n t i a t e t h e s a i d s u b m i s s i o n . I t w a s f u r t h e r s u b m i t t e d b y t h e a ss e s s e e t h a t t h e r e w a s n o i n c r i m i n a t i n g m a t e r i a l f o u n d d u r i n g t h e c o u r s e of s e a r c h , w h i c h c o u l d s h o w t h a t t h e t r a n s a c t i o n s i n v o l v i n g r e c e i p t o f s h ar e a p p l i c a t i o n m o n e y w e r e n o t g e n u i n e . T h e s e s u b m i s s i o n s m a d e b y t h e a s se s s e e w e r e n o t f o u n d a c c e p t a b l e b y t h e A s s e s s i n g O f f i c e r f o r t h e fo l l o w i n g r e a s o n s g i v e n i n h i s i m p u g n e d o r d e r : - “(i) The assessee company did not furnish the full details of share application money received during the year. (ii) No answer has been given by the assessee to the question why the subscribers have paid money for the equities of a closely held company that had little income generation activity and that too at a high premium. (iii)No prudent person would put his money at stake in the equities of a closely held company which had little business activity and from which he would get no return. (iv)In such cases, the agreement about real transactions takes place in secret and direct evidence about such direct transaction / agreement would not be available to the department in normal circumstances. (v)The result of these transactions are designed in a was that unaccounted money or cash w as brought in the books of the assessee company either in the form of equities or unsecured loan through multiple layers. (vi)The assessee was given reasonable and sufficient opportunities to produce all the shareholders, which he failed to do. (vii)The assessee has not explained the reasons for non service of letters/ summons to the shareholding companies which were despatched at their registered office. It shows that these companies only exist on paper and they have no business activity at ali. It raises question mark over the genuineness of the transactions and creditworthiness of the shareholders. (viii)The assessee was given a reasonable and fair opportunity to produce the shareholders, but he has failed to produce any of them. The assessee IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 4 has therefore, failed to prove the genuineness of the transaction and creditworthiness of the shareholders. (ix) On perusal of the part details with regard to share application money it is found that the share applicants/shareholders M/s. Reward Agencies Pvt. Limited, M/s. Lokseva Textrade Pvt. Ltd., M/s. Quest Financial Services Pvt. Ltd. And M/s. Shree Mata Finance Pvt. Ltd. have been identified as shell companies by the Investigation Wing of the Department. 5 . F o r t h e r e a s o n s g i v e n a b o v e , t h e A s s e s s i n g O f f i ce r h e l d t h a t t h e s h a r e a p p l i c a t i o n m o n e y o f R s . 3 , 8 5 , 0 0 , 0 0 0 / - r e c e i v ed d u r i n g t h e y e a r u n d e r c o n s i d e r a t i o n w a s n o t s a t i s f a c t o r i l y e x p l a i n ed b y t h e a s s e s s e e i n t e r m s o f s e c t i o n 6 8 a n d a n a d d i t i o n t o t h a t e x t e n t w a s m a d e b y h i m t o t h e t o t a l i n c o m e o f t h e a s s e s s e e b y t r e a t i n g t h e s h a r e a p p l i c a t i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t i n t h e a s s e s s m e n t c o m p l e t e d u n d e r s e c t i o n 1 5 3 A / 1 4 3 ( 3 ) o f t h e A c t v i d e a n o r d e r d a t e d 2 8 . 1 2 . 2 01 7 . 6 . I n r e s p e c t o f d i s a l l o w a n c e m a d e u n d e r s e c t i o n 1 4A o f t h e A c t , l d . A s s e s s i n g O f f i c e r n o t e d t h a t t h e a s s e s s e e h a s e a r n ed e x e m p t i n c o m e i n t h e f o r m o f d i v i d e n d a m o u n t i n g t o R s . 1 0 , 0 3 , 2 9 3 / - f or w h i c h n o d i s a l l o w a n c e h a s b e e n m a d e i n t h e c o m p u t a t i o n o f i nc o m e a n d h e r e s o r t e d t o c o m p u t i n g t h e d i s a l l o w a n c e a s p e r t h e pa r a m e t e r l a i d d o w n i n R u l e 8 D o f t h e I n c o m e T a x R u l e s , 1 9 6 2 ( h e r e i n a f t e r r e f e r r e d t o a s t h e ‘ R u l e s ’ ) . T h e l d . A s s e s s i n g O f f i c e r c o m p u t e d t h e a mo u n t o f d i s a l l o w a n c e o f R s . 3 , 9 3 , 8 3 7 / - u n d e r R u l e 8 D ( 2 ) ( i i ) a n d o f R s . 1 , 05 , 1 3 3 / - u n d e r R u l e 8 D ( 2 ) ) ( i i i ) . 7 . A g a i n s t t h e o r d e r p a s s e d b y t h e A s s e s s i n g O f f i c er u n d e r s e c t i o n 1 5 3 A / 1 4 3 ( 3 ) , a n a p p e a l w a s f i l e d b y t h e a s s e s s e e b ef o r e t h e l d . C I T ( A p p e a l s ) a n d s i n c e t h e s u b m i s s i o n s m a d e b y t h e a s s e s s e e i n s u p p o r t o f i t s c a s e t h a t t h e a d d i t i o n m a d e b y t h e A s s e s s i n g O f f i c e r u n d e r s e c t i o n 6 8 w a s n o t s u s t a i n a b l e , w e r e n o t f o u n d a c c e p t a b l e by t h e l d . C I T ( A p p e a l s ) , h e p r o c e e d e d t o c o n f i r m t h e a d d i t i o n m a d e b y t h e a s s e s s i n g O f f i c e r u n d e r s e c t i o n 6 8 , i n t e r a l i a , f o r t h e f o l l o w i n g r e a s o n s g i v e n i n h i s i m p u g n e d o r d e r : - IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 5 “1. I have carefully considered the action of the Ld. AO in making an addition of Rs.3,85,00,000/-, as unexplained credit u/s 68 of the Income Tax Act, 1961. After an exhaustive discussion and elaborating the factual and legal matrix, I find that the Ld. AO has held that the claim of the appellant of having raised share application monies was to be denied to the assessee-company, and was to be assessed as unexplained cash credit u/s 68 of the I T Act. The Ld. AO has placed on record the entire gamut of findings, and there is, in my considered view no further requirement for elaboration from this forum. In my view of the facts there are elaborate and direct evidence to clearly indicate that that the entire transactions undertaken by the appellant were merely accommodation entries taken for the purpose of fiving a legal facade to the moneys which,were entering the appellant's books of accounts in the grab of Share application Money. I also agree with the Ld. AO that the findings of the assessment were based on incriminating documents as the entire modus operandi of the activities of the assessee-company was located on the basis of the search action, and therefore the findings of the Ld. AO are also based on incriminating details found during the course of the search operation. Therefore none of the judicial precedents relied upon by the appellant irvso far as stating that no incriminating documents were found during the course of the search to warrant any additions come to the assistance of the appellant. These arguments are accordingly rejected. 2. The Ld. AO has made necessary attempts at enquiry, and there has been continuous non-compliance even to summons by the share applicants. The appellant-company has failed to discharge its onus and has not produced the applicants who were well known to it. I find that the burden has not been discharged by the appellant. 3 . I find that in similar circumstances, when the Ld AO has conducted proper enquiries or attempted to do so, as in. the, case at hand, and then made the additions, merely because the amounts of share application / Share Premium money has been routed through banks, the assessee could not have been said to have discharged the onus cast upon him in the surrounding circumstances of the case”. A g g r i e v e d b y t h e o r d e r o f t h e l d . C I T ( A p p e a l s ) , t h e a s s e s s e e h a s p r e f e r r e d t h i s a p p e a l b e f o r e t h e T r i b u n a l . 8 . I n G r o u n d s N o . 1 & 2 , t h e a s s e s s e e h a s c h a l l e n g ed t h e a c t i o n o f t h e l d . C I T ( A p p e a l s ) i n c o n f i r m i n g t h e a d d i t i o n o f R s . 3, 8 5 , 0 0 , 0 0 0 / - m a d e b y t h e A s s e s s i n g O f f i c e r u n d e r s e c t i o n 1 5 3 A i n c a s e o f t h e u n a b a t e d a s s e s s m e n t w h e n n o i n c r i m i n a t i n g e v i d e n c e w a s f o u n d d u r i n g t h e c o u r s e o f s e a r c h . I n s u p p o r t o f t h i s g r o u n d , t h e l d . C o u n se l f o r t h e a s s e s s e e s u b m i t t e d t h a t t h e r e t u r n o f i n c o m e f o r t h e y e a r u nd e r c o n s i d e r a t i o n w a s r e g u l a r l y f i l e d b y t h e a s s e s s e e u n d e r s e c t i o n 1 3 9 on 1 3 . 1 0 . 2 0 1 0 a n d s i n c e IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 6 n o n o t i c e u n d e r s e c t i o n 1 4 3 ( 2 ) w a s i s s u e d b y t h e A ss e s s i n g O f f i c e r w i t h i n t h e p r e s c r i b e d t i m e l i m i t , w h i c h e n d e d o n 3 0 . 0 9 . 2 0 11 , t h e a s s e s s m e n t f o r t h e y e a r u n d e r c o n s i d e r a t i o n h a d b e c o m e f i n a l b e f o re t h e d a t e o f s e a r c h i . e . 0 1 . 1 2 . 2 0 1 5 . H e c o n t e n d e d t h a t t h e s c o p e o f u n ab a t e d a s s e s s m e n t f o r t h e y e a r u n d e r c o n s i d e r a t i o n u n d e r s e c t i o n 1 5 3 A o f t h e A c t w a s c o n f i n e d t o a s s e s s m e n t o f u n d i s c l o s e d i n c o m e o f t h e a s s e s s e e a s d e t e c t e d o n t h e b a s i s o f i n c r i m i n a t i n g m a t e r i a l f o u n d d u r i n g t h e c ou r s e o f s e a r c h a n d s i n c e t h e r e w a s n o i n c r i m i n a t i n g m a t e r i a l f o u n d d u ri n g t h e c o u r s e o f s e a r c h , w h i c h c o u l d f o r m t h e b a s i s o f t h e a d d i t i o n o f R s . 3 , 8 5 , 0 0 , 0 0 0 / - m a d e b y t h e A s s e s s i n g O f f i c e r b y t r e a t i n g t h e s h a r e a p p l i c a t i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t u n d e r s e c t i o n 6 8 , t h e s a m e i s n o t s u s t a i n a b l e . I n s u p p o r t o f t h i s c o n t e n t i o n , h e r e l i e d , i n t e r a l i a , o n t h e d e c i s i o n o f t h e H o n ’ b l e D e l h i H i g h C o u r t i n t h e c a s e o f P C I T – v s . - K u r e l e P a p e r M i l l s P v t . L i m i t e d [ 3 8 0 I T R 5 7 1 ] a s w e l l a s t h e d e c i s i o n o f t he H o n ’ b l e C a l c u t t a H i g h C o u r t i n t h e c a s e o f P C I T – v s . - S a l a s a r S t o c k B r o k in g L i m i t e d ( I T A T N o . 2 6 4 o f 2 0 1 6 d a t e d 2 5 . 0 8 . 2 0 1 6 ) . 9 . T h e l d . D . R . , o n t h e o t h e r h a n d , c o n t e n d e d t h a t t h e B a n k a c c o u n t s f o u n d d u r i n g t h e c o u r s e o f s e a r c h r e v e a l e d t h e s h a re a p p l i c a t i o n m o n e y r e c e i v e d b y t h e a s s e s s e e d u r i n g t h e y e a r u n d e r c o n si d e r a t i o n a n d s i n c e t h e i m p u g n e d a d d i t i o n b y t r e a t i n g t h e s h a r e a p p l i c at i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t u n d e r s e c t i o n 6 8 w a s m a d e by t h e A s s e s s i n g O f f i c e r o n t h e b a s i s o f t h e s a i d B a n k a c c o u n t s f o u nd d u r i n g t h e c o u r s e o f s e a r c h , t h e s a m e i s v e r y m u c h w i t h i n t h e s c o p e o f as s e s s m e n t m a d e u n d e r s e c t i o n 1 5 3 A . H e c o n t e n d e d t h a t t h e a s s e s s e e c o u l d n o t e s t a b l i s h t h e i d e n t i t y a n d c a p a c i t y o f t h e c o n c e r n e d a p p l i c a n t s as w e l l a s a l s o f a i l e d t o e s t a b l i s h t h e g e n u i n e n e s s o f t h e r e l e v a n t t r a n s a c t io n s i n s p i t e o f s u f f i c i e n t o p p o r t u n i t y a f f o r d e d b y t h e A s s e s s i n g O ff i c e r i n t h i s r e g a r d . H e c o n t e n d e d t h a t t h e p r i m a r y o n u s t h a t l a y o n t h e a s se s s e e t h u s w a s n o t d i s c h a r g e d a n d t h e a d d i t i o n m a d e b y t h e A s s e s s i n g Of f i c e r b y t r e a t i n g t h e s h a r e a p p l i c a t i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t u n d e r s e c t i o n 6 8 w a s r i g h t l y c o n f i r m e d b y t h e l d . C I T ( A p p e a l s ) . IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 7 1 0 . I n t h e r e j o i n d e r , t h e l d . C o u n s e l f o r t h e a s s e ss e e s u b m i t t e d t h a t t h e B a n k a c c o u n t f o u n d d u r i n g t h e c o u r s e o f s e a r c h w a s d u l y d i s c l o s e d i n t h e b o o k s o f a c c o u n t o f t h e a s s e s s e e a n d e v e n t h e s h a r e a p p l i c a t i o n m o n e y r e f l e c t e d i n t h e s a i d a c c o u n t w a s d u l y s h o w n b y t h e a s s e s s e e i n t h e b a l a n c e - s h e e t f i l e d a l o n g w i t h t h e r e g u l a r r e t u r n of i n c o m e . H e c o n t e n d e d t h a t t h e s a i d B a n k a c c o u n t , t h e r e f o r e , d i d n o t c o n st i t u t e a n y i n c r i m i n a t i n g m a t e r i a l a n d i n t h e a b s e n c e o f a n y o th e r i n c r i m i n a t i n g m a t e r i a l f o u n d d u r i n g t h e c o u r s e o f s e a r c h , t h e a d di t i o n m a d e b y t h e A s s e s s i n g O f f i c e r a n d c o n f i r m e d b y t h e l d . C I T ( A p p ea l s ) b y t r e a t i n g t h e s h a r e a p p l i c a t i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t u n d e r s e c t i o n 6 8 i s n o t s u s t a i n a b l e . 1 1 . W e h a v e c o n s i d e r e d t h e r i v a l s u b m i s s i o n s a n d a ls o p e r u s e d t h e r e l e v a n t m a t e r i a l a v a i l a b l e o n r e c o r d . I t i s n o w w el l s e t t l e d t h a t w h e n t h e a s s e s s m e n t o r i g i n a l l y c o m p l e t e d f o r t h e r e l e v a n t y ea r h a s b e c o m e f i n a l b e f o r e t h e d a t e o f s e a r c h , t h e r e i s n o a b a t e m e n t o f t h e s a i d a s s e s s m e n t a n d t h e s c o p e o f a s s e s s m e n t u n d e r s e c t i o n 1 5 3 A w h i ch i s m a d e i n p u r s u a n t t o t h e s e a r c h i s l i m i t e d t o a s s e s s i n g t h e u n d i s c l o s e d i n c o m e o f t h e a s s e s s e e a s f o u n d / d e t e c t e d o n t h e b a s i s o f i n c ri m i n a t i n g m a t e r i a l f o u n d d u r i n g t h e c o u r s e o f s e a r c h . I n t h e c a s e o f Ke r e l e P a p e r M i l l s P v t . L i m i t e d ( s u p r a ) c i t e d b y t h e l d . C o u n s e l f o r t h e a ss e s s e e , n o i n c r i m i n a t i n g e v i d e n c e r e l a t e d t o s h a r e c a p i t a l i s s u e w a s f o u n d du r i n g t h e c o u r s e o f s e a r c h a n d k e e p i n g i n v i e w t h e s a m e , t h e a d d i t i o n ma d e b y t h e A s s e s s i n g O f f i c e r b y t r e a t i n g t h e s h a r e c a p i t a l a s u n e x p l a i n ed c a s h c r e d i t u n d e r s e c t i o n 6 8 w a s h e l d t o b e u n s u s t a i n a b l e b y t h e H o n ’b l e D e l h i H i g h C o u r t . I n t h e c a s e o f S a l a s a r S t o c k B r o k i n g L i m i t e d ( s u p r a) , i t w a s h e l d b y t h e H o n ’ b l e C a l c u t t a H i g h C o u r t t h a t i n c r i m i n a t i n g m a t er i a l i s p r e - r e q u i s i t e b e f o r e p o w e r c o u l d h a v e b e e n e x e r c i s e d u n d e r s e c t i on 1 5 3 A a n d t h e A s s e s s i n g O f f i c e r h a d n o j u r i s d i c t i o n u n d e r s e c t i o n 1 5 3 A t o r e o p e n t h e c o n c l u d e d c a s e s w h e n t h e s e a r c h a n d s e i z u r e d i d n o t d i s c l o s e a n y i n c r i m i n a t i n g m a t e r i a l . IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 8 1 2 . I n t h e p r e s e n t c a s e , t h e a d d i t i o n o f R s . 3 , 8 5 , 0 0, 0 0 0 / - b y t r e a t i n g t h e s h a r e a p p l i c a t i o n m o n e y a s u n e x p l a i n e d c a s h c r e d i t u n d e r s e c t i o n 6 8 w a s m a d e b y t h e A s s e s s i n g O f f i c e r i n t h e a s s e s s m e n t c o mp l e t e d u n d e r s e c t i o n 1 5 3 A o f t h e A c t o n t h e b a s i s o f B a n k a c c o u n t f o u n d d u r i n g t h e c o u r s e o f s e a r c h a n d s i n c e t h e s a i d B a n k a c c o u n t a s w e l l a s th e t r a n s a c t i o n s r e f l e c t e d t h e r e i n w e r e d u l y d i s c l o s e d b y t h e a s s e s se e i n i t s r e t u r n o f i n c o m e o r i g i n a l l y f i l e d f o r t h e y e a r u n d e r c o n s i d e ra t i o n , w e f i n d o u r s e l v e s i n a g r e e m e n t w i t h t h e c o n t e n t i o n o f t h e ld . C o u n s e l f o r t h e a s s e s s e e t h a t t h e s a m e c a n n o t b e t r e a t e d a s i n c r i m in a t i n g m a t e r i a l f o u n d d u r i n g t h e c o u r s e o f s e a r c h . T h e a d d i t i o n o f R s . 3 , 85 , 0 0 , 0 0 0 / - m a d e b y t h e A s s e s s i n g O f f i c e r u n d e r s e c t i o n 6 8 a n d c o n f i r m e d b y t h e l d . C I T ( A p p e a l s ) t h u s w a s n o t b a s e d o n a n y i n c r i m i n a t i n g m a t e r i a l f ou n d d u r i n g t h e c o u r s e o f s e a r c h a n d t h e s a m e , i n o u r o p i n i o n , i s n o t s u s ta i n a b l e b e i n g o u t s i d e t h e s c o p e o f s e c t i o n 1 5 3 A o f t h e A c t . W e , t h e r e f o r e, d e l e t e t h e s a i d a d d i t i o n a n d a l l o w t h i s a p p e a l o f t h e a s s e s s e e . 1 3 . B y t h e e a r l i e r o r d e r o f t h i s T r i b u n a l d a t e d 1 0 t h M a y , 2 0 1 9 p a s s e d i n t h e c a s e o f A - O n e I n f r a P r o j e c t s P v t . L i m i t e d [ I . T .( S S ) A . N o . 9 1 / K O L / 2 0 1 8 ] , T r i b u n a l h a v e d e l e t e d t h e s i m i l a r a d di t i o n m a d e b y t h e A s s e s s i n g O f f i c e r f o r t h e f o l l o w i n g r e a s o n s g i v e n in P a r a g r a p h s n o . 7 & 8 o f t h e o r d e r : - “7. We have considered the rival submissions and also perused the relevant material available on record. It is now well settled that when the assessment originally completed for the relevant year has become final before the date of search, there is no abatement of the said assessment and the scope of assessment under section 153A which is made in pursuant to the search is limited to assessing the undisclosed income of the assessee as found/detected on the basis of incriminating material found during the course of search. In the case of Kerele Paper Mills Pvt. Limited (supra) cited by the ld. Counsel for the assessee, no incriminating evidence related to share capital issue was found during the course of search and keeping in view the same, the addition made by the Assessing Officer by treating the share capital as unexplained cash credit under section 68 was held to be unsustainable by the Hon’ble Delhi High Court. In the case of Salasar Stock Broking Limited IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 9 (supra), it was held by the Hon’ble Calcutta High Court that incriminating material is pre-requisite before power could have been exercised under section 153A and the Assessing Officer had no jurisdiction under section 153A to reopen the concluded cases when the search and seizure did not disclose any incriminating material. 8. In the present case, the addition of Rs.15,00,000/- by treating the share application money as unexplained cash credit under section 68 was made by the Assessing Officer in the assessment completed under section 153A of the Act on the basis of Bank account found during the course of search and since the said Bank account as well as the transactions reflected therein were duly disclosed by the assessee in its return of income originally filed for the year under consideration, we find ourselves in agreement with the contention of the ld. Counsel for the assessee that the same cannot be treated as incriminating material found during the course of search. The addition of Rs.15,00,000/- made by the Assessing Officer under section 68 and confirmed by the ld. CIT(Appeals) thus was not based on any incriminating material found during the course of search and the same, in our opinion, is not sustainable being outside the scope of section 153A of the Act. We, therefore, delete the said addition and allow this appeal of the assessee”. 3. As the common issue involved in the present case as well as all the material facts relevant thereto and the arguments raised by both the sides are similar, we follow our conclusion drawn in the case of A-One Infra Projects Pvt. Limited and delete the additions made by the Assessing Officer under section 68 and confirmed by the ld. CIT(Appeals) for both the years under consideration”. 1 4 . I n r e s p e c t o f a p p e a l r e l a t i n g t o A . Y . 2 0 1 1 - 1 2 , t h e f a c t s a r e i d e n t i c a l a n d c o m m o n g r o u n d s h a v e b e e n t a k e n . O u r o b s e r v a t i o ns a n d f i n d i n g s g i v e n i n I T ( S S ) A . N o . 1 0 2 / K O L / 2 0 1 8 i s a p p l i e d mutatis mutandis a n d a c c o r d i n g l y a p p e a l f o r t h i s y e a r a l s o i s a l l o w e d . 15. In the result, both the appeals of the assessee are allowed. O r d e r p r o n o u n c e d i n t h e o p e n C o u r t o n S e p t e m b e r 2 6 , 2 0 2 2 . Sd/- Sd/- (Sanjay Garg) (Girish Agrawal) Judicial Member Accountant Member Kolkata, the 26 th day of September, 2022 IT(SS)A No. 102 & 103/KOL/2018 Assessment Years : 2010-2011 & 2011-2012 M/s. Bindyavasini Projects Pvt. Limited 10 Copies to : (1) M/s. Bindyavasini Projects Pvt. Limited, 21, Centre Point, Hemant Basu Sarani, Kolkata-700001 (2) Deputy Commissioner of Income Tax, Central Circle-4(3), Kolkata (3) Commissioner of Income Tax(Appeals)-21, Kolkata (4) Commissioner of Income Tax -, Kolkata (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.