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was issued to the assessee on 13.01.2016, in response thereto assessee submitted its return of income u/s 153A ONLINE on 18.01.2016 declaring income at Rs.7,47,800/-. For making the assessment, theAssessing Officer issued notice u/s 143(2) and 142(1) on 11.07.2017 asking to the assesses to file the details and explanations on the ITR and seized documents, which was replied.

In Assessment, AO has noted that during the course of search proceeding u/s 132 on 26.08.2015 a hard disc was seized (Annexure-AS-5) from the residence of Shanti Lal Maroo group Udaipur. A working copy of the same was prepared and seized alongwith the original hard disc and the hard disc contained the incriminating material about the assessee company M/s Ashiana Buildprop Pvt.

Ltd. and the working copy of hard disc has been examined and an excel sheet named POC method/total estimated cost has been found at new folder/newfolder/work/other desktop &excel last where average construction cost per sq. ft on saleable area has been shown to be calculated at Rs.1092.13 vide Annexure-A as under:-

Ashiyana Buildprop Estimated Cost Rate/Sq.

No.                        Particulars                        Ft.




                                                                           ITA Nos. 706 to 709/Jodh/2024
                                                                      Ashiana Buildprop Pvt. Ltd., Udaipur.







        Total Const. Cost                                                        1047

Total Construction Area                                                        125000
Construction Cost/Sq Ft                                                          1047
Total Construction Cost                                                     130875000
Total Saleable Area                                                            119835
Avg. Construction Cost/Sq ft on Saleable Area                                 1092.13

1.4 Part Documents chosen and part ignored by the ld. AO:From the observation of the ld. AO, it is also clear that the seized documents referred by him as well also available in the same hard disc have not been properly considered in toto and the observations have been concluded just on pick and choose method applying on examination of part documents only which are incomplete in all respect for the purpose for which it was prepared and other documents which were final has been ignored. No correct inference can be drawn or any correct opinion can be framed on appreciation of such referred incomplete or part documents. It is also an admitted facts that the statements referred as Annexure A to C were never confronted after seizure of Hard disc either in the post search proceeding or in the current assessment proceedings before issue of query letter.The other relevant documents are already found place in the same hard disc and if the position is being appreciated alongwith such relevant statements the whole confusion arises in the mind of the ld. AO would be cleared all the issues in favour of the assessee without any doubt. However the ld.AO despite all these position calculated hisown estimated working for making arbitrary addition and it is the settled legal position that no addition can be made on the basis of estimation without any material and the material placed on record cannot be ignored. Thus the addition so made by the ld. AO on the basis of such an arbitrary calculation based on assumptions, presumptions, conjecture guess ITA Nos. 706 to 709/Jodh/2024 Ashiana Buildprop Pvt. Ltd., Udaipur.

The position finally arrived at in this annexure has been duly utilized as such in the calculation of income or revenue recognition as per the POC method adopted by the assessee company for finalization of account as well as for declaration of income for the relevant period. Please note that, the information available in the Annexure "A" are duly matched and verifiable from the books of accounts, final accounts, return of income and other relevant records of the assessee which has not been rebutted by the ld.AO. In this respect we have to further submit that all the relevant information related to finalization of accounts and computation of income on the basis of POC are available in the same seized hard disc from where AO has provided copy of Annexure "A". Considering each and every statement available in the hard disc as is referred in the beginning of this submission, it is crystal clear that there is nothing incriminating in the Annexure "A from which it can be inferred that the assessee company has escaped any income or suppressed sales or furnished wrong particulars. Hence the observation against Annexure "A" as incriminating documents made by the ld. AO was wrong or incorrect.