2013 (4) TMI 990 - AT - Income Tax

Summary

Issues involved:
The judgment deals with the reassessment framed u/s. 153A/143(3) of the Income-tax Act, 1961 for Assessment Year 2004-05 without any fresh addition/disallowance based on search.

Comprehensive Details:

1. Grounds of Appeal:
The appellant raised three grounds challenging the reassessment framed u/s. 153A/143(3) of the Act dated 31.12.2009, alleging arbitrariness, invalidity, and duplication of assessment.

2. Facts Leading to the Issue:
The original return of income for the assessment year 2004-05 was filed by the assessee, followed by a search operation and subsequent reassessment by the AO u/s. 153A/143(3) of the Act without any fresh additions. The CIT(A) dismissed the appeal as infructuous, leading to the current challenge.

3. Arguments and Observations:
The appellant contended that repeating the same income figures in reassessment as originally assessed u/s. 143(3) of the Act was improper. The Tribunal noted that no additional income was discovered during the search, and the CIT(A) confirmed no new additions were made.

4. Legal Analysis:
The Tribunal examined the provisions of sections 153A to 153D of the Act regarding search assessments. It emphasized that if no undisclosed income was found during the search, the AO should not repeat the same income figures in reassessment. The AO was directed to amend the assessment order accordingly.

5. Decision:
The appeal of the assessee was allowed, emphasizing the need for proper computation of income and taxes in reassessment under section 153A of the Act.

This judgment highlights the importance of following due process in reassessment proceedings and ensuring that search assessments are conducted in accordance with the provisions of the Income-tax Act, 1961.