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TMI Blog2015 (9) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... f convenience. 2. Both the assessees are questioning the validity of addition made by the AO in the assessment proceedings framed under section 143(3) r.w.s. 153A of the Act consequent to the search operations. 3. The facts of the case are stated in brief. The Revenue carried out search and seizure operations in the hands of Lodha Group of cases on 10.1.2011. The assessees herein also fall in Lodha group and hence they were also subjected to search. Consequently, the AO issued notices u/s 153A to both the assessees. The assessee named as Smt.Sheetal Abhinandan Lodha declared a total income of Rs. 42,056/- and assessee named as Vinti Abhishekh Lodha declared a total income of Rs. 1,21,300/- in the return of income filed for AY 2006-07 in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V/s ACIT- [2013] 259 CTR 281 (Raj) b) ACIT V/s PRATIBHA INDUSTRIES LTD.- [2013] 141 ITD 151 (ITAT[MUM]) c) ALL CARGO GLOBAL LOGISTICS LTD. V/s DCIT- [2012] 137 ITD 287(ITAT[Mum])(SB) Since there was no incriminating material relating to the gifts was stumbled upon by the revenue, it was contended that the AO was not right in law in assessing the gift receipts in the hands of the assessees herein. 5. However, the ld. CIT(A) did not agree with the said contentions of the assessees. The L.d CIT(A), on the contrary, placed reliance on the decision rendered by the Hon'ble Delhi High Court in the case of CIT V/s Anil Kumar Bhatia (2012) (82 CCH 113) and held that the decisions relied by the assessee are not applicable to the facts of the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the AO was not justified in assessing the gift receipts as income of the assessees herein. 7. The assessee was specifically asked by the Bench as to whether these assesses had filed return of income earlier u/s 139 of the Act for the assessment year under consideration, the ld. AR fairly admitted that they have not filed return of income u/s 139 of the Act. He also conceded that the return of income filed in response to the notice issued u/s 153A of the Act is the first return of income filed by the assessees. It is also pertinent to note that the AO had also not initiated any proceeding on his own to assess the income of the assessees for the year under consideration. He also submitted that there was no necessity for the assessees to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessees have failed to file original return of income. Accordingly he submitted that the assessment pertaining to AY 2006-07 cannot be considered to be concluded in the instant cases in the absence of either an intimation u/s 143(1)(a) of the Act or an assessment order u/s section 143(3) of the Act or even the original returns of income. Accordingly, he submitted that the assessees cannot take support of ratio laid down by the Special Bench of the Tribunal in the case of ALL CARGO GLOBAL LOGISTICS LTD (supra). 9. We have heard the rival contentions and carefully perused the record. Admittedly, these assessees have not filed original returns of income prior to the date of initiation of search under the regular provisions of the Act. The ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the revenue for the year under consideration. In the absence of any proceeding, the question of the same becoming concluded also does not arise. In that view of the matter, the question of abatement or otherwise of the proceeding relating to AY 2006-07 also does not arise. 11. If the assessees had filed any return of income under regular provisions of the Act prior to the date of initiation of search and if the time limit prescribed for issuing notice u/s 143(2) had also expired by the date of initiation of search, then also it can be held that the assessment has become concluded by operation of law. In this regard, we may refer to the decision rendered by the Mumbai bench of Tribunal in the case of Gurinder Singh Bawa Vs. DCIT (2014)(15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y noticed that the assessment or reassessment pertaining to the year under consideration was not pending as on the date of initiation of search. Hence the answer given by the Special bench in (a) above does not apply to the assessee. Since the assessees have not filed any return of income for the year under consideration under regular provisions of the Act prior to the date of initiation of search, any item of receipt/income disclosed in the return of income filed in response to the notice issued u/s 153A of the Act cannot be considered to have been assessed prior to the date of initiation of search. Hence, in our view, the question of application of answer (b) given by the Special bench also is not applicable to the facts of the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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