When is addition beyond the scope of section 153A of the Income Tax Act?

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. 792/Del/2018 : Asstt. Year: 2009-10
 ITA No. 793/Del/2018 : Asstt. Year: 2010-11
 ITA No. 794/Del/2018 : Asstt. Year: 2011-12
 ITA No. 795/Del/2018 : Asstt. Year: 2012-13

ACIT,
Central Circle-20,
New Delhi-110055
(APPELLANTT 

Vs 

M/s Alchemist Life Sciences Ltd.,
23, Alchemist House, Nehru Place,
New Delhi-110019
(RESPONDENT)
PAN No. AABCV3029Q

 Assessee by : None
 Revenue by : Sh. Satpal Gulati, CIT DR

Date of Hearing: 12.07.2021 
Date of Pronouncement: 12 .07.2021

 ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

The present appeals have been filed by the revenue against the orders of ld. CIT (A)-27, New Delhi dated 24.11.2017.

2. Since, the issues involved in all these appeals are common which were heard together .

3. In ITA No . 792/Del/2018, following grounds have been raised by the revenue:

“1. That the Ld. CIT(A) erred in law and on facts in deleting the addition o f Rs. 76,43,975/- made on account of disallowance of expenses, without properly appreciating the facts and circumstances of the case  where assessee failed to file any evidence in support of expenses claimed.

2. That the Ld. CIT(A) erred in law and on facts indeleting the addition of Rs.3 ,18,84,338/- made onaccount o f disallowance of purchases without properly appreciating the facts and circumstances of the case where assessee failed to file any evidence in support of expenses claimed.

3. That the Ld. CIT(A) erred in law and on facts indeleting the additions on the basis of decision ofHon’ble High Court in the case of CIT Vs Kabul Chawlaas the Department’s SLP against this order has beenduly accepted by the Hon’ble Supreme Court of India and the matter is still pending for ad judication.”

4. The assessee company has e-filed its original return o f income u/s 139(1) as under: 

5. Later on, a search and seizure operation was carried u/s132 on 20.06.2014 on M/s Alchemist Group of cases and accordingly, a notice u/s 153A was issued. At the time o f search, the assessment for the assessment years 2009-10,2010-11, 2011-12 and 2012-13 respectively has attained finality and accordingly in terms of second proviso to section 153A such an assessment is to be treated as unabated and without any reference to any seized material or incriminatingevidence found during the course of search. In the impugnedproceedings, we find that the additions made by the AssessingOfficer are not based on any material found and seized during the course of search and seizure action. The fact of which has not been disputed by the revenue .

6. Before the Ld. CIT (A), the assessee has challenged that the said additions, however, the ld. CIT (A) confirmed the action of the Assessing Of ficer as the hearings have been defaulted by the assessee . 

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