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12.1 Before the Tribunal, the assessee filed an application under Rule 27 of the Income-tax Appellate Tribunal Rules, 1963 (In short the 'ITAT Rules') supporting the order of the Ld. CIT(A) and submitted that disallowance under section 40A(3) has been rightly deleted by the Ld. CIT(A) on merit, however, the proceedings under section 153A of the Act have been wrongly upheld by the Ld. CIT(A). According to the Ld. counsel, finding on the issue of jurisdiction acquired by the Ld. AO u/s 153A, has been decided against the assessee, and, therefore, assessee is before the Tribunal by way of application under Rule 27 of the ITAT Rules.

Hence, the addition made by the AO amounting to Rs.23,67,367/- deserves to be deleted and therefore the same is hereby deleted. In result this ground of appeal is allowed."

12.4 Accordingly, the Ld. CIT(A) has not only deleted the addition in question on merit, but also deleted the addition due to lack of jurisdiction. In our opinion, the Ld. CIT(A) has decided the issue of disallowance under section 40A(3) in favour of the assessee, both on legal ground as well as on the merit . In terms of Rule 27 of the ITAT Rules, a respondent, though he may not have appealed, may support the order appealed against on any of the grounds decided against him. We find that the issue of disallowance under section 40A(3) of the Act has not been decided against the assessee, either on the issue of validity or on merit and, therefore, there is no justification for filing such an application under Rule 27 of the ITAT Rules. As in the circumstances, no application under Rule 27 of the ITAT Rules lies, it is dismissed accordingly.

2999/Del/2014; 2604/Del/2014;

3165/Del/2014 & 436/Del/2014 transactions. Bona fide belief coupled with the genuineness of the transactions would constitute reasonable cause for not invoking the provisions of section 271D of the I.T. Act, 1961."

33.2 Aggrieved, the Revenue is in appeal before the Tribunal raising the grounds as reproduced above.

34. During the hearing, the counsel of the assessee drawn our attention to application under Rule 27 of the ITAT Rules filed by the assessee. In the said application, the assessee has challenged the penalty should have been imposed by the Joint Commissioner rather than Additional Commissioner of Income Tax. The assessee also raised the issue that penalty levied is barred by limitation under section 275 of the Act.

34.1 On the contrary, the Ld. DR opposed the application on the ground that the assessee did not raise these issues before the Ld. CIT(A) and since he has not adjudicated those issues, therefore, the assessee cannot be aggrieved on the issues and the no application under Rule 27 of the ITAT Rules could lied. 34.2 We have heard the rival submission and perused the relevant material on record. We are agreed with the contention of the Ld. DR that issues raised by the assessee in application under Rule 27 are not emanating from the impugned order, and therefore assessee cannot take shelter of Rule 27 of the ITAT Rules, under which the assessee can support the order of the Ld. CIT(A) on the issue which is decided against the assessee.