9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 917 - HC - Income TaxAssessment u/s 153A - completed assessment/unabated assessment in absence of any incriminating material - HELD THAT - The decision of Saumya Construction 2016 (7) TMI 911 - GUJARAT HIGH COURT as quoted held that the case of completed assessment/unabated assessment in absence of any incriminating material will not permit making of addition by the AO and that the AO has no jurisdiction to reopen the completed assessment. Supreme court confirmed the view taken by the Delhi High court in Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT and of this Court in Saumya Construction (supra) laying down the law that no addition can be made in respect of completed assessment in absence of any incriminating material. The supreme court in laying down the proposition considered the object and purpose of insertion of section 153A of the Act. In view of the above decision of the supreme court in Abhisar Buildwell P. Ltd. 2023 (4) TMI 1056 - SUPREME COURT wherein held that no addition can be made in respect of completed/ unabated assessment in absence of any incriminating material. There is no gainsaying that the issue sought to be raised and the substantial questions of law ought to be put forth in that context are answered.
Issues Involved:
The judgment involves issues related to the interpretation of section 153A of the Income Tax Act, 1961 in the context of completed assessment/unabated assessment and the jurisdiction of the Assessing Officer to make additions in absence of incriminating material found during a search. Judgment Summary: Issue 1: Addition during assessment under section 153A The Tax Appeal arose from an order of the Income Tax Appellate Tribunal regarding the Assessment Year 2008-2009. The Revenue raised questions regarding the scope of additions made during the assessment under section 153A of the Act, specifically whether such additions should be limited to incriminating material found during a search under section 132(1) of the Act. The Commissioner of Income Tax (Appeals) had deleted various additions made by the Assessing Officer, leading to the appeal by the Revenue. Issue 2: Scope of Assessment under section 153A The Supreme Court, in the case of Principal Commissioner of Income Tax, Central-3 vs. Abhisar Buildwell P. Ltd., addressed the issue of the Assessing Officer's jurisdiction in completed assessment/unabated assessment scenarios under section 153A of the Act. The Court clarified that no addition can be made in respect of completed assessment in the absence of incriminating material found during the search. The Court referred to previous decisions by the Delhi High Court and the Gujarat High Court, confirming that additions must be based on seized material and not arbitrary assessments. Issue 3: Legal Position on Section 153A The legal position on Section 153A was summarized by the Delhi High Court in the case of Kabul Chawla, emphasizing the mandatory issuance of notices, abatement of pending assessments, and the requirement for assessments to be based on seized material. The Supreme Court upheld the views of the Delhi High Court and the Gujarat High Court, stating that completed assessments cannot be interfered with without incriminating material. Conclusion: The Supreme Court's decision in Abhisar Buildwell P. Ltd. clarified that no additions can be made in completed assessments without incriminating material. Consequently, the substantial questions of law raised in the appeal were answered in light of this decision, leading to the dismissal of the appeal as no legal issue of substance was found to arise in the case.
|
