PRINCIPAL COMMISSIONER OF INCOME TAX - 4 vs. WEST WING INFRASTRUCTURE PVT LTD.

C/TAXAP/102/2018 ORDER DATED: 27/02/2018 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 102 of 2018 With R/TAX APPEAL No. 103 of 2018 ============================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 4 Versus WEST WING INFRASTRUCTURE PVT LTD. ============================================================== Appearance : Mr. M R BHATT, Sr Advocate with Mrs MAUNA M BHATT for the Appellant ============================================================== CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHI

and

HONOURABLE Mr. JUSTICE B.N. KARIA

27th February 2018 ORAL ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad dated 30th September 2017 raising the following questions for our consideration : [A] “Whether the Appellate Tribunal is correct in law and on facts in upholding the decision of CIT [A] in deleting the addition of Rs. 10,89,39,900/= made on account of On- money ?” [B] “Whether the Appellate Tribunal is correct in law and on facts in quashing the assessment proceedings under Section 153A of the Act ?” C/TAXAP/102/2018 ORDER DATED: 27/02/2018 Issue pertains to deletion of Rs. 10.89 Crores [rounded off] made by the Assessing Officer pursuant to search carried out in case of the respondent-assessee. CIT [A] noted the assessee’s contention that the additions are not made on the basis of any incriminating material found during the search and that therefore, no additions could be made. CIT [A], however, proceeded to process the evidence taken into account by the Assessing Officer and held on merits that the additions were not justified. In other words, CIT [A] did not accept assessee’s legal contentions. This order of CIT [A] gave rise to two appeals. Revenue was aggrieved by the action of CIT [A] in allowing the assessee’s appeal. Assessee filed cross objection in view of the fact that CIT [A] had not accepted assessee’s legal contentions. The Tribunal, by the impugned judgment disposed of both the appeals upon which the Revenue has filed the present Appeals. Having heard learned counsel for the Revenue, we noticed that the Tribunal has relied on the judgment of this Court in case of Principal Commissioner of Income-tax vs. Saumya Construction Pvt. Limited, reported in [2016] 387 ITR 529 [Guj.] holding that when no incriminating material is available in the search with the aid of which additions can be made, the additions made by the Assessing officer C/TAXAP/102/2018 ORDER DATED: 27/02/2018 were not justified. In view of the settled legal position by virtue of the judgment of this Court, Tax Appeals are dismissed. [Akil Kureshi, J.] Sd/= [B.N Karia, J.] Prakash