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TMI Blog2013 (1) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... nt made under section 143(3)/153A. In addition, the assessee has also challenged the legal validity of additions made u/s. 153(a) when there was no incriminating material found, in all years as the additional ground. The additional ground being legal which could be adjudicated on the basis of material available on record was admitted by the Tribunal. 2. Facts in brief are that the assessee who was engaged in the business of trading in iron and steel in the proprietary concern M/s. Khandelwal Sheet processors, had declared total income of Rs. 1,29,560/-; Rs. 2,40,960/- and Rs. 417179/- for the assessment years 2001-02, 2002-03 and 2004-05 respectively in the original returns file by him. Subsequently, there was search conducted on 10.11.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und challenging the legal validity of addition made under section 153A which has been admitted by the Tribunal for adjudication. 3. We first take up the issue relating to legal validity of additions made under section 153A because this is a basic issue having a bearing on the outcome of the appeal itself. The ld. AR argued that the returns for the relevant years had been processed under section 143(1) and time period for issue of notice under section 143(2) had expired on the date of search and therefore assessment had reached finality in these years. It was submitted that in such cases additions in the assessments made under section 153A/143 could be made only on the basis of incriminating material found during the search as held by the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that jurisdiction under section 153A was automatic to reassess six immediate preceding assessment years irrespective of the fact whether any incriminating material was found or not. Another aspect on which there had been divergent views was whether even if AO had jurisdiction under section 153A, addition can be made in assessment / reassessment only when some incriminating material has been found. All these aspects had been referred to the Special Bench of the Tribunal in case of Alcargo Global Logistics Ltd. (supra). 5. The Special bench in the case of Alcargo Global Logistics Ltd. (supra), has held that provisions of section 153A come into operation if a search or requisition is initiated after 31.5.2003 and on satisfaction of this condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch while making additions. As the assessment in this case at the time of search had attained finality, the AO could make addition only on the basis of incriminating material found at the time of search as held by the Special bench of the Tribunal in the case of Alcargo Global Logistics Ltd. (supra). The ld. DR for the assessee argued that the decision of the Special bench of the Tribunal in the case of Alcargo Global Logistics Ltd. (supra), has been superceded by the judgment of Hon'ble High Court of Delhi in the case of CIT vs. Anil Kumar Bhatia 24 taxmann.com 98. We have carefully perused the said judgment of the Hon'ble High Court and find that the Hob'ble High Court have not reversed the decision of the Special bench of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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