9911796707
TMI Blog2015 (12) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... s directed against the order of learned Commissioner of Income Tax (Appeal ) (Central ) , Gurgaon dated 26.3.2014 The assessee has filed Cross Object ions against the same. 2. Briefly, the facts of the case are that search and seizure operation was conducted at the premises of Modern Group of cases, in which the assessee was also covered as on 17.3.2010. For the assessment year 2008- 09, the assessee had filed return under sect ion 139(1) of the Income Tax Act , 1961 ( in shot the Act ) as on 30.6.2008 showing total income of ₹ 2,14,810/- . In response to notice under sect ion 153A of the Act after the search, the same income was returned by the assessee. After making addition amounting to ₹ 14,95,764/- invoking the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income for six financial years immediately preceding assessment year relating to the previous year in which such search is conducted. Therefore, the Assessing Officer is bound to issue notice to the assessee for each assessment years falling within six assessment years before the date of search. 4. Aggrieved by the said order , the Department has come up in appeal challenging the action of the learned CIT (Appeals) in deleting the disallowance made by the Assessing Officer under sect ion 14A of the Act , while the assessee has filed Cross Object ion challenging the act ion of the learned CIT (Appeals) in dismissing the ground relating to 153A. Since the Cross Object ion involves the legal issue, we adjudicate it first . 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strict himself in making disallowance or addition on the basis of material unearthed at the time of search. The judgments relied upon by the learned counsel for the assessee are : ( i ) Mumbai High Court in the case of CIT Vs. M/s Murli Agro Products Ltd. , ITA No.36 of 2009 dated 29.10.2010 (Mum) ( i i ) Delhi High Court in the case of CIT Vs. Kabul Chawla, ITA No.707/2014 ( i i i ) Another order of I .T.A.T. , Mumbai Bench in the case of Gurinder Singh Bawa Vs. DCIT, ITA No.2075/Mum/2010, dated 16.11.2012 7. The learned D.R. rel ied upon the order of the Assessing Officer as well as that of the learned CIT (Appeals) . 8. We have heard the learned representatives of both the parties, perused the findings of the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue was there before the Special Bench of the I .T.A.T. in the case of Al l Cargo Global Logistics Ltd. Vs. DCIT (2012) 23 Taxmann.com 103(Mum) (SB) , whereby the Bench observed as under : 53................................We are of the view that for answering this question, guidance will have to be sought from section 132(1). If any books of account or other documents relevant to the assessment had not been produced in the course of original assessment and found in the course of search in our humble opinion such books of account or other documents have to be taken into account while making assessment or reassessment of total income under the aforesaid provision. Similar position will obtain in a case where undisclosed income or undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of search. 11. The situation so explained by the Hon'ble Bombay High Court has also been relied upon by the Hon'ble Delhi High Court in the very recent case of Kabul Chawla (supra) , whereby after referring to various judgments of the High Courts as well as the Special Bench decision in the case of All Cargo Global Logistics Ltd. (supra) , the legal position has been explained by the Court as follows : 37. On a conspectus of Section i53A(i) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (i) will have to be mandatorily iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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