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TMI Blog2016 (6) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... including the assessee on 10.2.2009. Statutory notice u/s 153A of the Income Tax Act, 1961 (hereinafter called 'the Act') was issued on 15.10.2009 requiring the assessee to file her return of income. In response, the assessee filed the copy of the original return. During the 153A proceedings, the Assessing Officer noticed that the assessee had received two gifts of Rs. 2 lacs each during the year. The assessee was required to obtain the confirmations from the donors. However, since the confirmations could not be obtained, an addition of Rs. 4 lacs was made to the income of the assessee. On appeal before the First Appellate Authority, the additions were confirmed. Now, the assessee is in appeal before us and has raised the following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine. The Ld. AR submitted that the addition was made on the basis of a query raised during the assessment proceedings and not on the basis of any incriminating material found during the course of search. Ld. AR also drew our attention to the decision of the Hon'ble High Court of Delhi in CIT Central-III vs. Kabul Chawla in ITA Nos. 707/2014, 709/2014 and 713/2014. 4. Ld. DR on the other hand supported the order of the AO. 5. We have carefully considered the material placed before us and the issue involved. Section 153A of the Act provides that where a search is initiated u/s 132 of the Act, the AO shall "assess or reassess the total income of the six assessment years immediately preceding the assessment year" relevant to the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven by the first proviso to assess income for six assessment years has to be confined to the undisclosed income unearthed during search and cannot include items which are disclosed in the original assessment proceedings. 6. It is seen on facts that as the return for the year had been processed u/s 143 (1) the assessment was not pending and as no material was found during the search, the addition has no feet to stand. It will also be worthwhile to reproduce para 37 of the judgment of the Hon'ble High Court of Delhi in the case of CIT Central - III vs. Kabul Chawla (supra) which lays down the entire law with regard to section 153A as under :- "37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the lig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated 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 finding 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 as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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