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TMI Blog2016 (4) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... additions u/s. 22 in income from house property amounting to Rs. 92064, Rs. 92820/-, Rs. 93576/-, Rs. 94332/-, Rs. 13564/- and Rs. 95,844/-; respectively, in proceedings under section 143(3) r.w.s. 153C r.w.s. 153A(1)(b) of the Income Tax Act, 1961; in short "the Act". 2. Both parties are in agreement at the outset that facts and issues involve in all six appeals are identical. The assessee states that its twin substantive grounds in the six impugned assessment years plead that the sole addition of deemed net annual value in his income from house property stated hereinabove ought not to have been made in absence of any incriminating evidence found in the course of search in question. We treat IT(SS)A 525/Ahd/2011 as the lead case in this f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding paragraphs. His case is that the impugned annual letting value addition is in the nature of a deeming fiction not being based on any incriminating material found in the course of search. The assessee submits that a search assessment framed u/s. 153A of the Act is to be based on incriminating material discovered during search only. Case law of hon'ble Delhi high court in (2015) 61 taxmann.com 412 (Del) CIT vs. Kabul Chabla is quoted in support holding as under:- "i. Once a search takes place under Section 132 of the Act, notice under Section 153 A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned, 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 were not produced or not already disclosed or made known in the course of original assessment." The assessee accordingly states that this case law takes into account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iny notices 143(2) of the Act alike in a case of regular assessment. We opine in this factual and legal backdrop that relevant law as settled by hon'ble courts relating to an assessment framed u/s. 153A applies to section 153C proceedings as well. 8. We now deal with the legal principles propounded by the hon'ble Delhi high court as extracted hereinabove and hold that as per clause IV, an assessment framed u/s. 153A cannot be arbitrarily made without any relevance or nexus with the seized material and the same has to be framed only on the basis of seized material found in the course of search. We revert back to the facts of the instant case and repeat that the impugned addition of deemed annual letting value does not have relevance and nex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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