ACIT, New Delhi v. M/s Prithvi Sound Products Co. Pvt. Ltd.,, New Delhi

ITA 3422/DEL/2011 | 2004-2005
Pronouncement Date: 17-04-2014 | Result: Dismissed

Appeal Details

RSA Number 342220114 RSA 2011
Assessee PAN ITANO3422T
Bench Delhi
Appeal Number ITA 3422/DEL/2011
Duration Of Justice 2 year(s) 9 month(s) 13 day(s)
Appellant ACIT, New Delhi
Respondent M/s Prithvi Sound Products Co. Pvt. Ltd.,, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 17-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 17-04-2014
Date Of Final Hearing 03-02-2014
Next Hearing Date 03-02-2014
Assessment Year 2004-2005
Appeal Filed On 04-07-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SMT. DIVA SINGH JUDICIAL MEMBER AND SHRI T.S. KAPOOR ACCOUNTANT MEMBER I.T.A. NO.3422 TO 3426/DEL/2011 ASSESSMENT YEAR : 2004-05 05-06 06-07 2007-08 & 2008-09 ACIT M/S PRITHVI SOUND PRODUCTS CO. CENTRAL CIRCLE4 PVT. LTD. KLJ HOUSE 63- NEW DELHI. V. NAJAFGARH ROAD NEW DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AAACP AAACP AAACP AAACP- -- -6725 6725 6725 6725- -- -G GG G APPELLANT BY : SHRI M.B. REDDY CIT-DR RESPONDENT BY : SHRI V.K. SABHARWAL ADVOCATE. ORDER PER TS KAPOOR AM: THESE ARE FIVE APPEALS FILED BY THE REVENUE AGAINST SEP ARATE ORDERS OF LD CIT(A) ALL DATED 29.4.2011. THESE APPEA LS WERE HEARD TOGETHER AND COMMON ISSUE IS INVOLVED IN ALL THESE APPE ALS THEREFORE FOR THE SAKE OF CONVENIENCE A CONSOLIDATED COMMON OR DER IS BEING PASSED. 2. THE SOLE ISSUE INVOLVED IN THESE APPEALS IS THE GRIEVA NCE OF REVENUE BY WHICH THE LD CIT(A) HAS DELETED THE ADDIT ION MADE BY THE ASSESSING OFFICER WHICH HE HAD MADE BY DISALLOWING THE C LAIM OF ASSESSEE U/S 24 OF THE INCOME TAX ACT 1961 WHICH WAS CLA IMED BY THE ASSESSEE AS EXPENDITURE OF INTEREST ON BORROWED CAPITAL. THE REVENUE IS ALSO AGGRIEVED WITH THE CONTENTIONS OF LD CIT(A) IN I.T.A. NOS.3423 TO ITA NO3422 TO 3426/DEL/2011 2 3426 WITH THE FINDING OF LD CIT(A) BY WHICH HE HAD HELD THAT IN CASE OF COMPLETED ASSESSMENT THE ADDITION CANNOT BE MADE U/S 153A/153C WITHOUT INCRIMINATING DOCUMENTS FOUND AT THE TIME O F SEARCH. IN I.T.A. NO.3425/DEL/2011 THE REVENUE HAS TAKEN A FURTHER GRO UND OF APPEAL BY WHICH IT IS AGGRIEVED BY THE ACTION OF LD CIT(A) WHO HAD ALLOWED THE RELIEF FOR AN AMOUNT OF ` .21 375/- WHICH THE ASSESSING OFFICER HAD MADE ON THE BASIS OF BOGUS BILL BOOKS FOUND DURING SEARC H. 3. ON MERITS THE ASSESSING OFFICER HAD DISALLOWED THE CLAIM OF ASSESSEE REGARDING INTEREST ON BORROWED CAPITAL BY HOODI NG THAT THERE WAS NO NEXUS BETWEEN BORROWED CAPITAL AND RENTAL INCO ME. THE FINDINGS OF LD ASSESSING OFFICER IN RESPECT OF ASSESSMENT YEA R 2004-05 IN I.T.A. NO.3422/DEL/2011 ARE REPRODUCED AS UNDER:- 4..2. AS REGARDS THE DEDUCTION OF INTEREST CLAIMED BY THE ASSESSEE AS PER SECTION 24 THE SAME IS ALLOWABLE IF THE PROPE RTY HAS BEEN ACQUIRED CONSTRUCTED REPAIRED. RENEWED OR RECONSTRU CTED WITH BORROWED CAPITAL AND THE ASSESSEE HAS PAID INTEREST ON SUC H CAPITAL. THE INTEREST HAS BEEN CLAIMED TO BE PAID TO THE FOLLO WING PERSONS:- 1. M/S KLJ RESOURCES LTD. 17 97 476/- 2. M/S SILVASSA PLAST. 2 43 616/- BOTH THE ABOVE PERSONS BELONG TO THE SAME M/S KLJ GROUP OF CASES AND HAVE SUBSTANTIAL INTEREST IN THE ASSESSEE GROUP. IN F ACT M/S KLJ RESOURCES LTD. HAD GIVEN AN AMOUNT OF ` .1 30 00 000/- AS ADVANCE TO THE ASSESSEE COMPANY IN THE FY 2002-03 ITSELF BUT NO INTEREST WAS CHARGED. IT IS ONLY WHEN THE ASSESSEE COMPANY HAS BEGU N TO ENJOY RENTAL INCOME WHEN THE PAYMENT OF INTEREST HAS BEEN CLAIMED. IN THIS CIRCUMSTANCES IT IS PURELY A DEVICE USE D BY THE ASSESSEE TO MINIMIZE THE INCIDENCE OF TAX. ANOTHER CONC ERN M/S ITA NO3422 TO 3426/DEL/2011 3 SILVASSA PLAST HAS ADVANCE THE LOAN IN THE YEAR UNDER C ONSIDERATION ITSELF I.E. ON 12.2.2004 WHERE AS THE ASSESSEE COMPANY H AS ENJOYED THE RENTAL INCOME W.E.F. 1.9.2003 (AS IS EVIDENT FROM THE COPY OF LEASED DEED SUBMITTED BY THE ASSESSEE COMPANY WHICH MEANS THAT THE CONSTRUCTION OF THE BUILDING ON WHICH RENT HAS BE EN EARNED HAS ALREADY BEEN CONSTRUCTED. AS SUCH THERE IS NO NEXUS BETW EEN THE LOAN TAKEN FROM M/S SILVASSA PLAST AND THE INVESTMENT MA DE AND THE CONSTRUCTION OF BUILDING. 4.3. THE SCOPE OF DEDUCTION U/S 24 IS MUCH NARROWER AS COMPARED TO DEDUCTIONS AVAILABLE U/S 36 IN CASE OF BUSINESS INCOME . WHILE IN CASE OF BUSINESS INCOME THE ONLY CRITERIA THAT THE EXP ENSES HAS TO PASS IS THAT IT SHOULD BE EXPENDED FOR BUSINESS PURPOSES. IT NEED NOT BE CONNECTED WITH THE INCOME DIRECTLY. FOR CLAI M U/S 24 THE CLAIM OF DEDUCTION OF INTEREST HAS TO PASS THE STRICT T EST THAT PRINCIPAL AMOUNT BORROWED SHOULD BE EXPENSES EXCLUSIVE LY FOR ACQUIRING CONSTRUCTING REPAIRING RENEWAL OR RECON STRUCTION WITH BORROWED CAPITAL. 4.4. THE CONTINUING REQUIREMENT OF THE SECTION 24 IS THAT THE INTEREST MUST BE EXCLUSIVELY INCURRED ON THE BORROWED CAPITAL WHICH MUST HAVE DIRECT NEXUS OR CONNECTION WITH THE LET OUT PROPERTY. THIS SECTION VIEW IS NOT CONCERNED WITH THE MERE USING OF T HE FUNDS THAT ARE BORROWED BUT THAT THE BORROWAL MUST BE FOR INV ESTMENT ON THOSE ASSETS INCOME FROM WHICH ARE LIABLE TO BE TAXED UNDER THE HEAD INCOME FROM HOUSE PROPERTY. THE ABSENCE OF DIR ECT NEXUS BETWEEN THE AMOUNT BORROWED AND THE PROPERTY DOES NO T ENTITLE THE ASSESSEE FOR CLAIM U/S 24 DEDUCTION OF THE INTEREST PAID BY HIM. 4. SIMILAR FINDINGS WERE MADE BY ASSESSING OFFICER TO DI SALLOWANCE OF INTEREST ON CAPITAL IN OTHER ASSESSMENT YEARS. THE LD CIT(A) HAS ITA NO3422 TO 3426/DEL/2011 4 DELETED THIS ADDITION BY HOLDING AS UNDER FOR ASSESSMENT YEAR 2004- 05:- FROM THE COPY OF BALANCE SHEET FOR THE YEAR ENDING 31.3.2004 IT IS NOTED THAT THE APPELLANT IS HAVING UN-SECURED LO AN FOR ` .1 69 73 247/- WHICH IS THE SUM TOTAL OF INTER CORPOR ATE DEPOSITS FROM M/S KLJ RESOURCES LTD AND M/S SILVASSA PLAST. IT IS FU RTHER NOTED THAT THE INTEREST PAYMENT MADE TO THESE PARTIES WHICH HAS BEEN DEBITED IN THE P&L A/C IS FOR `.20 41 092/- WHI CH HAS BEEN CHARGED AS ONE OF THE EXPENSES AGAINST THE RENTAL INCOM E FOR ` .58.66 LAKHS. FROM THE SCHEDULE OF FIXED ASSETS IN THE B ALANCE SHEET IT IS FURTHER NOTED THAT THERE HAS BEEN AN ADDI TION DURING THE YEAR IN THE PROPERTY AT MOTI NAGAR NEW DELHI F OR ` .2 24 94 833/-. THIS ADDITION TO FIXED ASSETS HAS APPARE NTLY BEEN MADE OUT OF THE UNSECURED LOAN ON ACCOUNT OF INTER-C ORPORATE DEPOSITS ON WHICH INTEREST HAS BEEN PAID. THE RENTAL IN COME DURING THE YEAR HAS BEEN FROM THIS VERY PROPERTY AT M OTI NAGAR DELHI. FROM THESE FACTS IT IS CLEAR THAT THERE IS A DI RECT NEXUS BETWEEN THE AMOUNT BORROWED ON WHICH INTEREST HAS BEE N PAID AND THE ACQUISITION/CONSTRUCTION OF THE IMPUGNED LET OUT PROPERTY WHICH HAS BEEN ACQUIRED UTILIZING THE BORROWED CAPIT AL FUNDS. THEREFORE IN TERMS OF SECTION 24 OF THE IT ACT THE INTEREST PAID IS ALLOWABLE AS A DEDUCTION. ACCORDINGLY THE ADDITION OF ` .20 41 092/- MADE BY THE ASSESSING OFFICER IS DIRECTED T O BE DELETED. 5. THE LD CIT(A) IN RESPECT OF OTHER YEARS HAS GIVEN SIMIL AR FINDINGS BY WHICH HE HAS HELD THAT THERE WAS SUFFICIENT NEXUS BETWEEN BORROWED CAPITAL AND RENTAL INCOME AND THER EFORE THE ADDITION MADE BY ASSESSING OFFICER WAS NOT JUSTIFIED. THE ITA NO3422 TO 3426/DEL/2011 5 FINDING IN RESPECT OF OTHER YEARS RELATING TO SAME ISSU E ARE SUMMARIZED AS UNDER:- ASSESSMENT YEAR 2005 ASSESSMENT YEAR 2005 ASSESSMENT YEAR 2005 ASSESSMENT YEAR 2005- -- -06 0606 06 DURING THE YEAR THE APPELLANT HAS CLAIMED INTEREST PAYMENT FOR ` .17 15 926/- AS A DEDUCTION IN THE P&L A/C TOWARDS THE INTEREST PAID ON THE FUNDS BORROWED FROM M/S KLJ R ESOURCES LTD. AND M/S SILVASSA PLAST IN THE PREVIOUS F.Y. 2003-0 4 WHICH WAS USED FOR BUILDING CONSTRUCTION AT DLF INDL. AREA MOTI NAGAR DELHI. IT IS FURTHER NOTED FROM THE SUBMISSIONS MADE THA T ANOTHER INTEREST OF ` .2 70 353/- RELATED TO TERM LOAN TAKEN FROM STATE BANK OF INDIA NS M/S KLJ POLYMERS AND CHEMICALS LTD. WH ICH RELATED TO DISTT. CENTRE WAZIRPUR PROJECT WHICH IS S HOWN UNDER PROJECT IN PROGRESS AND ACCORDINGLY THIS INTEREST OF ` .2 70 353/- HAS BEEN CAPITALIZED AND NOT CLAIMED IN THE P&L A/C. FROM THESE FACTS IT IS CLEAR THAT THERE IS A DIRECT NEXUS BETWEEN THE AMOUNT BORROWED ON WHICH INTEREST HAS BEEN PAID AND THE ACQUISITION/CONSTRUCTION OF THE IMPUGNED LET OUT PROP ERTY WHICH HAS BEEN ACQUIRED UTILIZING THE BORROWED CAPITAL FUN DS. THEREFORE IN TERMS OF SECTION 24 OF THE INCOME TAX ACT THE INTEREST PAID IS ALLOWABLE AS A DEDUCTION. ACCORDINGL Y THE ADDITION OF ` .17 15 926/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. ASSESSMENT YEAR 2006 ASSESSMENT YEAR 2006 ASSESSMENT YEAR 2006 ASSESSMENT YEAR 2006- -- -07: 07: 07: 07: DURING THE YEAR THE APPELLANT HAS PAID TOTAL INTERE ST FOR ` .66 80 286/- ON THE BORROWING OF FUNDS OUT OF WHICH PROPORTIONATE SUM OF ` .10 92269/- HAS BEEN CLAIMED AS EXPENSES ITA NO3422 TO 3426/DEL/2011 6 AGAINST RENTAL INCOME AND THE REMAINING ` .55 88 027/- IS CAPITALIZED TO THE UNDERGOING PROJECT OF DISTT. CENT RE WAZIRPUR. APPELLANT HAS ALSO SUBMITTED THAT OPENING BALANCE OF FUNDS BORROWED FROM M/S SILVASSA PLAST AND M/S KLJ RESOURCES LTD . HAS BEEN REPAIRD BY TAKING FURTHER BORROWING FROM KLJ P OLYMERS AND CHEMICALS LTD. AND OTHERS WHICH HAS PROPORTIONATELY AT TRIBUTED AGAINST THE BUILDING CONSTRUCTED AT DLF MOTI NAGAR DELHI FROM WHICH RENTAL INCOME HAS BEEN EARNED. FROM THESE FACTS IT IS CLEAR THAT THERE IS A DIRECT NEXUS BETWEEN THE AMOUNT BORRO WED ON WHICH INTEREST HAS BEEN PAID AND THE ACQUISITION/CONSTR UCTION OF THE IMPUGNED LET OUT PROPERTY WHICH HAS BEEN ACQUIRE D UTILIZING THE BORROWED CAPITAL FUNDS. THEREFORE IN TERMS OF SE CTION 24 OF THE INCOME TAX ACT THE INTEREST PAID IS ALLOWABLE AS A DEDUCTION. ACCORDINGLY THE ADDITION OF ` .10 92 269/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007- -- -08: 08: 08: 08: DURING THE YEAR THE APPELLANT HAS PAID TOTAL INTERE ST FOR ` .1 40 88 151/- ON THE BORROWING OF FUNDS OUT OF WHI CH PROPORTIONATE SUM OF ` .7 56 107/- HAS BEEN CLAIMED AS EXPENSES AGAINST RENTAL INCOME AND THE REMAINING ` .1 33 32 044/-IS CAPITALIZED TO THE UNDERGOING PROJECT OF DISTT. CENT RE WAZIRPUR. APPELLANT HAS ALSO SUBMITTED THAT OPENING BALANCE OF U NPAID LOANS AGAINST THE BUILDING CONSTRUCTED AT DLF MOTI NA GAR DELHI COMES TO ` .108 58 591/- ON THE BASIS OF CALCULATGION OF INITIAL BORROWING FOR CONSTRUCTION LESS THE RETURNED AMOUNT OVER THE LAST THREE YEARS STARTING FROM A.Y. 2004-05. ACCORDING LY THE PROPORTIONATE INTEREST ON THIS REDUCING BALANCE USED F OR CONSTRUCTION WHICH WORKS OUT TO ` .7 56 107/- HAS BEEN CLAIMED AS ITA NO3422 TO 3426/DEL/2011 7 DEDUCTION U/S 24 OF THE IT ACT. UPON EXAMINATION OF THESE FACTS IT IS CLEAR THAT THERE IS A DIRECT NEXUS BETWEEN THE AMOU NT BORROWED ON WHICH INTEREST HAS BEEN PAID AND THE ACQUISITION/CONSTRUCTION OF THE IMPUGNED LET OUTN PRO PERTY WHICH HAS BEEN ACQUIRED UTILIZING THE BORROWED CAPITQAL FU NDS. THEREFORE IN TERMS OF SECTION 24 OF THE INCOME TAX A CT THE INTEREST PAID IS ALLOWABLE AS DEDUCTION. ACCORDINGLY THE ADDITION FOR ` .7 56 107/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. ASSESSMENT YEAR: 2008 ASSESSMENT YEAR: 2008 ASSESSMENT YEAR: 2008 ASSESSMENT YEAR: 2008- -- -09: 09: 09: 09: DURING THE YEAR THE APPELLANT HAS PAID TOTAL INTERE ST FOR ` .1 78 59 665/- ON THE BORROWING OF FUNDS OUT OF WHI CH PROPORTIONATE SUM OF ` .7 93 741/- HAS BEEN CLAIMED AS EXPENSES AGAINST RENTAL INCOME AND THE REMAINING ` .1 70 65 924/- IS CAPITALIZED TO THE UNDERGOING PROJECT OF DISTT. CENT RE WAZIRPUR. APPELLANT HAS ALSO SUBMITTED THAT OPENING BALANCE OF U NPAID LOANS AGAINST THE BUILDING CONSTRUCTED AT DLF MOTI NA GAR DELHI COMES TO ` .58 91 305/- ON THE BASIS OF CALCULATGION OF INITIAL BORROWING FOR CONSTRUCTION LESS THE RETURNED AMOUNT OVER THE LAST THREE YEARS STARTING FROM A.Y. 2004-05. FROM THESE FACTS IT IS CLEAR THAT THERE IS A DIRECT NEXUS BETWEEN THE AMOUNT BORROWED ON WHICH INTEREST HAS BEEN PAID AND THE ACQUISITION/CO NSTRUCTION OF THE IMPUGNED LET OUT PROPERTY WHICH HAS BEEN ACQ UIRED UTILIZING THE BORROWED CAPITAL FUNDS. THEREFORE IN TERMS OF SECTION 24 OF THE INCOME TAX ACT THE INTEREST PAID IS ALLOWABLE AS DEDUCTION. ACCORDINGLY THE ADDITION FOR ` .7 93 741/- MADE BY THE ASSESSING OFFICER IS DIRECTED TO BE DELETED. ITA NO3422 TO 3426/DEL/2011 8 IN RESPECT OF ANOTHER DELETION MADE BY LD CIT(A) IN I.T.A. NO.3425/DEL/2011 HE HAS HELD HAS UNDER:- I HAVE GONE THROUGH THE COPY OF SEIZED BILLS (AS REFE RRED ABOVE) RELATING TO SHRI RAJESH SINGH) THE EMPLOYEE OF THE A SSESSEE COMPANY. THE TOTAL OF ALL REIMBURSEMENT MADE TO THE EMPLOYEE DURING THE YEAR ON ACCOUNT OF MEDICAL REIMBURSEMENT AND BOOKS AND PERIODICALS WHICH HAS BEEN DEBITED IN THE APPELLA NTS BOOKS OF ACCOUNTS FOR F.Y. 2006-07 COMES TO ` .21 375/- AND THIS HAS BEEN DISALLOWED BY THE ASSESSING OFFICER WHILE THE APPEL LANT HAS CLAIMED THAT THESE PAYMENTS HAVE BEEN MADE TO THIS EMP LOYEE AS PER THE POLICY OF THE COMPANY WHEREBY SIMILAR REIMBURSEMENT HAVE BEEN MADE TO OTHER SUCH EMPLOYEES. IT HAS BEEN FURTHER SUBMITTED THAT THE TOTAL OF THE AMOUNTS WRITTEN IN THE SEIZED DOCUMENTS IDS LESS THAN ` .21 375/- AND THAT WHILE THEIR EXPENSES MAY HAVE BEEN FRAUDULENTLY CLAIMED BY THE EMPLOYEE BUT THE PAYMENTS HAVE BEEN MADE IN GOOD FA ITH AND AS PER APPELLANTS POLICY OF REIMBURSEMENT AND FROM IT S REGULAR BOOKS OF ACCOUNTS AND THEREFORE IS AN ALLOWABLE EXPEND ITURE. THE APPELLANTS CLAIM HAS BEEN EXAMINED FROM THE LEDGER ACCOUNT AS WELL AS THE SEIZED DOCUMENTS AND THE SOURCE OF PAYMENT IS FOUND TO BE CORRECT AND ACCOUNTED FOR. ADDITIONALLY THIS A MOUNT IS OTHERWISE ALLOWABLE U/S 28 OF THE INCOME TAX ACT 196 1 AS A BUSINESS/TRADING LOSS IN TERMS OF THE VARIOUS DECISIONS OF HON'BLE SUPREME COURT. ACCORDINGLY GROUND NO.4 IS ALLOWED A ND FOR THE ADDITION OF ` .21 375/- IS DIRECTED TO BE DELETED. 6. AT THE TIME OF HEARING THE LD AR SUBMITTED LD CIT (A) HAD DELETED THE ADDITIONS ON MERITS AS WELL HE HELD THAT ADDITIONS WERE NOT LEGALLY TENABLE. THE LD CIT(A) HAD HELD THAT ADDITIONS MADE BY ASSESSING ITA NO3422 TO 3426/DEL/2011 9 OFFICER WERE NOT TENABLE IN VIEW OF THE FACT THAT N O INCRIMINATING DOCUMENT WAS FOUND DURING THE COURSE OF SEARCH. HOWEVE R HE SUBMITTED THAT ASSESSEE HAS NOT FILED ANY CROSS OBJECTION THOUGH THE ASSESSEES CASE IS SQUARELY COVERED BY THE VARIOUS DECISIONS OF TRIBUNAL IN ITS FAVOUR. HE FURTHER SUBMITTED THAT TH E INTEREST WAS PAID ON MONEYS BORROWED WHICH WAS UTILIZED FOR THE PURPOSE OF CONSTRUCTION/ACQUISITION OF PROPERTY WHICH WAS SET OFF AS EXPENDITURE AGAINST RENTAL INCOME AND THEREFORE THE LD CIT(A) H AS RIGHTLY DELETED THE ADDITION. 7. THE LD DR ON THE OTHER HAND RELIED UPON THE OR DER OF ASSESSING OFFICER. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PAR TIES AND HAVE GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT LD CIT(A)S ORDER IN THIS RESPECT ARE QUITE ELABORATE AND HE HAS CLEARLY ESTABLISHED NEXUS BETWEEN INTEREST ON BORROWED CAPITAL AND RENTAL INCOME AND AS PER THE PROVISIONS OF SECTION 24 THE SAME WAS ALLOWABLE. THEREFORE WE DO NOT SEE ANY INFIRMITY IN THE ORDER OF LD CIT(A). WE CONCUR WITH HIS FINDINGS WITH REGARDS TO DE LETION OF INTEREST ON BORROWED CAPITAL. 9. AS REGARDS DELETION OF ` .21 375/- IN I.T.A. NO.3425/DEL/2011 WE FIND THAT LD CIT(A) HAS RIGHTLY DELETED THE ADDITION AND ON THIS POINT ALSO WE ARE IN AGREEMENT WITH LD CIT(A)S FINDINGS. 10. AS REGARDS THE GROUND OF APPEAL TAKEN BY REVENUE IN RESPECT OF FINDINGS OF LD CIT(A) THAT NO ADDITION CAN BE MADE U /S 153A/153C IN CASE OF COMPLETED ASSESSMENT WHEREIN NO INCRIMINATING D OCUMENT IS FOUND DURING SEARCH WE ARE IN AGREEMENT WITH THE FI NDINGS OF LD ITA NO3422 TO 3426/DEL/2011 10 CIT(A) TO THIS RESPECT AS THIS ISSUE HAS BEEN DISCUSSED IN MA NY CASES AND IT HAS BEEN CONSISTENTLY HELD THAT IN RESPECT OF CO MPLETED ASSESSMENTS NO ADDITIONS CAN BE MADE U/S 153A IN THE ABSEN CE OF INCRIMINATING MATERIAL FOUND DURING SEARCH. IN THIS R ESPECT LD CIT(A) HAS GIVEN FINDINGS RELYING UPON A NUMBER OF CASE LAWS. 11. IN VIEW OF THE ABOVE THE APPEALS FILED BY THE R EVENUE ARE DISMISSED. 12. ORDER PRONOUNCED IN THE OPEN COURT ON DAY OF APRIL 2014. (DIVA SINGH) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. .04.2014. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER (ITAT NEW DELHI). DATE OF HEARING 3.2.2014 DATE OF DICTATION 9.4.2014 DATE OF TYPING 15.4.2014 DATE OF ORDER SIGNED BY 17.4.2014 BOTH THE MEMBERS & PRONOUNCEMENT. DATE OF ORDER UPLOADED ON NET & SENT TO THE BENCH CONCERNED. ITA NO3422 TO 3426/DEL/2011 11