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TMI Blog2015 (9) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... s carried out on 16.3.2007. It is AO's contention that as per material seized /impounded during the course of search and connected survey operations it was discovered that the assesssee had received gifts of Rs. 21 lacs from one Shri Jagdish Mangla on 11.1.2001. Summons was issued to Shri Jagdish Mangla but they could not be served upon him as he had already expired on 24.6.2002. It is the Department's contention that Shri Jagdish Mangla was an entry operator and the entries in the bank statement of the assessee (Account No. 988) were not related to any business dealings of Shri Mangla as claimed by the assessee but were accommodation entries. It is also the Department's contention that as Shri Jagdish Mangla was not related to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings which have become final as on the date will not stand abated. It was further submitted that no incriminating material was found during the course of search to show that the gifts were not genuine. 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. 3. Ld. DR on the other hand supported the order of the AO. 4. 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 previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pending because the AO is not required to do anything further about such a return. The power given 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 . 5. 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 been rightly deleted by the Ld. CIT(A). 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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