DCIT, NEW DELHI vs. M/S. L.T. FOODS LTD., NEW DELHI

per order dated 18/12/2007. Such assessment order was passed in response to the original return of income filed by the assessee on 29/10/2005 declaring total income of INR 1 0640958/–. The assessee claimed deduction u/s 80 IB of the income tax act at INR 3 0178411/–. The return was processed u/s 143 (1) of the act on a 28/3/2006. The assessment u/s 143 (3) of the act was completed on 18/12/2007 at the total income of INR 1 4451319/– and the deduction u/s 80 IB to the extent of Rs. 28592709/– was allowed to the assessee. The learned assessing officer made only addition/disallowance is with respect to the staff training expenses incurred on directors on to the tune of Rs. 2224659/–. The assessee did not file any appeal against the order passed by the learned assessing officer u/s 143 (3) of the income tax act. 37. Subsequently search took place of on 10/2/2009. The notices u/s 153A of the income tax act was also issued to the assessee against which the assessee filed the return of income and consequently the assessment u/s 153A) of the income tax act was passed on 19/8/2011 wherein the learned assessing officer has made the disallowance is u/s 40A (3) of the income tax act as well as certain other disallowances. The total taxable income of the assessee was determined at INR 1 70129886/–. On appeal before the learned CIT – A appeal of the assessee was partly allowed. Therefore, both the parties are in appeal before us. 38. Coming to the appeal of the assessee wherein it has been contested that the additions made by the learned assessing officer are bad in law as there is no incriminating material found during the course of search. It is further stated that the assessment proceedings to the concluded on the date of initiation of the search and therefore if any additions/disallowances are required to be made should be made only on the basis of the incriminating material found during the course of search.