DCIT, NEW DELHI vs. M/S. GEN X COMMODITIES (P) LTD., NEW DELHI

The facts in both the cases in both these years also relate to search on Jaypee Group dated 30.03.2012. Pursuant to search assessment under section 153A of the Income Tax Act, 1961 (the Act) for assessment year 2007-08 was passed on 31.03.2015 determining total income of the assessee at Rs.6,67,18,548/- against the assessed income as per order dated 31.12.2009 of Rs.1,73,37,891/-.

Similarly for assessment year 2009-10 assessment under Section 153A of the Act was passed on 31.03.2015 determining total income of the assessee at Rs.65,73,74,610/- against the originally assessed income by order dated 19.12.2011 at Rs.1,62,91,890/-.

For both the years appeals were preferred before the learned CIT (Appeals) who held that these are concluded assessments and not abate as on the date of search. He found that additions made by the learned Assessing Officer were not based on any incriminating document found during the course of search. Therefore, he deleted the same following the decision of the Hon’ble Delhi High Court in CIT Vs. Kabul Chawla 61 taxmann.com 412 (Del).

For both the years Assessing Officer is in appeal stating that the decision of the Hon’ble Delhi High Court has not been accepted by the Revenue and are challenged before the Hon’ble Supreme Court by filing an SLP. The learned Authorized Represetative supported the order of the learned CIT (Appeals).

We have carefully considered the rival contentions and perused the orders of the lower authorities. Apparently in this case both the assessments are concluded assessments and additions have been made by the learned Assessing Officer without showing any incriminating material found during the course of search. The learned CIT (Appeals) relying on the decision of the Hon’ble Delhi High Court deleted the same. Even at the stage of arguments before us the Revenue could not show existence of any incriminating material as well as that the assessments are not concluded. In view of this we do not find any infirmity in the order of the learned CIT (Appeals) in following the decision of the Hon’ble Delhi High Court in CIT Vs. Kabul Chawla (supra). Thus, the order of the learned CIT (Appeals) are confirmed for both the years and appeal of the Revenue for both the years are dismissed.