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TMI Blog2017 (4) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year relevant to the previous year in which such search is conducted or requisition is made. The word 'assess' or 'reassess' not only suggest but show that power under Section 153A includes reassessment and that would be done only when assessment has already been finalized. There is inherent hint in Section 153A and there is no reason to restrict its scope. We find that this issue has now been finalized by a Division Bench of this Court in Commissioner of Income Tax Vs. Raj Kumar Arora [2014 (10) TMI 255 - ALLAHABAD HIGH COURT ] wherein held that the reasons given by the Tribunal that no material was found during the search cannot be sustained, since we have held that the Assessing Officer has the power to reassess the returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under. 4. M/S Kesarwani Zarda Bhandar, Sahson, Allahabad a firm (hereinafter referred to as Assessee ) came into existence in 1967, for manufacturing branded chewing tobacco known as Zarda which is an excisable item. 5. For Assessment Years 2004-05 and 2007-08, Assessee already filed returns of income within time. Assessement Order in respect to Assessment Year 2004-05 was also passed by Assessing Officer ( hereinafter referred to as AO ) on 19th December 2006. Remaining assessments for Assessment Years 2005-06 to 2007-08 were completed under Section 143(A). On 27th August 2009, search and seizure operation was carried out at Assessee s premises at Allahabad, Branch Office situated at Mumbai and Ahemdabad and the residential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... open the assessment proceedings already made and determine the total income of the assessee ; the Assessing Officer, while exercising the power under Section 153A of the Act, would make assessment and compute the total income of the assessee including the undisclosed income, notwithstanding the assessee had filed the return before the date of search which stood processed under Section 143(1)(a) of the Act ? 9. The questions raised before us are confined to scope of Section 153A as to whether Assessing Officer has power to reassess return of Assessee not only for the undisclosed income found during search operation but also in regard to assessment order already finalized or stood processed under Sectin 143(1) of Act, 1961. Section 153 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate: (2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the [Principal Commissioner or] Commissioner: Provided that such revival shall cease to have effect, if such order of annulment is set aside.] Explana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the course of search. Tribunal has decided the issue in favour of Assessee and deleted all the additions made in assessment orders up for consideration in various appeal for Assessment Years 2004-05 to Assessment Year 2007-08. 11. We find that this issue has now been finalized by a Division Bench of this Court in Commissioner of Income Tax Vs. Raj Kumar Arora, (2014) 367 ITR 517 ( All) wherein it has been held as under :- Consequently, even though an assessment order has been passed under Section 143(1) (a) or under Section 143(3) of the Act, the Assessing Officer would be required to reopen these proceedings and reassess the total income taking notice of undisclosed income even found during the search and seizure operation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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