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TMI Blog2016 (3) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Assessing Officer u/s 153A on 20.07.2012. 2. On the facts and in the circumstances of the case, the Learned CIT(A) erred in partly allowing the appeal as he ought to have fully allowed the appeal. 3. On the facts and in the circumstances of the case, the Learned CIT(A) erred in holding that "Wherever the land is shown as work in progress, to extent of disallowance u/s 40A(3), will reduce. This view is in conformity with the decision of hon'ble Supreme Court in case of Attar Singh. In case where land is shown as investment, however, subsequently it is converted into stock-in-trade, to the extent of disallowance u/s 40A (3) value of work-inprogress would reduce at the time of conversion." 4. The appellant may kindly be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 14.10.2011. In response to the notice, the assessee filed its return of income declaring NIL income on 24.11.2011. Accordingly, the assessment under Section 143 r.w.s. 153A of the Act was completed vide order dated 20.07.2012 Rs. 30,94,214/- for assessment year 2007-08 and at a total income of Rs. Rs. 50,058/- for assessment year 2008-09. The assessed income in both the assessment years were on account of addition made under Section 40A(3) of the Act. 2.2. Aggrieved by the order of the ld.AO, assessee preferred appeals for both the assessment years before the ld. CIT(A). The ld.CIT(A) confirmed the addition vide order dated26.07.2013., while confirming the addition, directed the Assessing Officer to reduce the amount of addition from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no pending assessment, and when the notice under Section 143(2) of the Act was issued the limitation for issuance of such notice had already expired. 3.2. The ld.AR drew our attention to the assessment, where there was no whisper about any seized incriminating material. Therefore, he submitted that the order of assessment made is null and void in the light of the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Kabul Chawla, ITA No. 707/2014, dated 28th August, 2015. He also relied on the decisions of a coordinate bench of ITAT, Delhi Bench in the case of M/s Saraswati Housing & Developers Vs. ACIT, ITA No. 5795/Del/2011, AY 2006-07, dated 1st March, 2013. 4. On the other hand, ld. CIT(DR) relied on the orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153 A does not say that additions should be strictly made on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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