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TMI Blog2017 (8) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral in nature and do not require any specific adjudication. 4. Ground No. 2 is related to the objection of the assessee against the order passed u/s 263 by the CIT directing the assessing officer to redo the assessment. According to the assessee the direction of the Ld.CIT is beyond the scope of the provision of section 153A of I.T.Act. This ground is common for all the assessment years of 2005-06 and 2006-07 and 2007-08. In this case the assessments were completed u/s 143(3) r.w.s.153A and the assessee filed the appeal before the CIT(A) and subsequently withdrawn the appeal. The assessee‟s contention is that the assessments that were passed u/s 143(3) r.w.s 153A were invalid since the assessments were made without referring to any of incriminating material found during the course of search. The Ld.A.R further submitted that the details of date of filing the returns, the due date for issue of notice u/s 143(2) and date of completion of assessment as under : A.Y Date of Filing Due date for issue of Notice Date of order passed u/s 143(3) Date of Assessment u/s 152A r.w.s. 143(3) 2005-06 01.11.2005 31.03.2007 No scrutiny 29.12.2011 2006-07 31.10.2006 31.03.2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken up the case for revision by issue of notice u/s 263 dated 11.03.2014 within the period of two years from the end of the relevant assessment year in which the order u/s 143(3) r.w.s. 153A was passed. Therefore, the CIT has rightly taken up the case for revision u/s 263. According to the Ld.DR the orders of 263 required to be upheld. 7. We have heard the rival submissions and perused the material placed on record. For the assessment year 2005-06 the addition is pertaining to the difference in the closing balance as on 31.03.2005 and the opening balance as on 01.04.2005. The Ld.CIT has observed that the closing capital balance as on 31.03.2005 was Rs. 77,681/-. Whereas, the opening capital balance was taken at Rs. 13,952/- as on 01.04.2005 and there was a difference and hence, the Ld.CIT has directed the assessing officer to reexamine the issue and make the enquiries and complete the assessment. 7.1. During the appeal, the Ld.AR referred the paper book page No.30 which is the closing balance as on 31.03.2005. As per the balance sheet, the capital balance as on 31.03.2005 was Rs. 7,76,810/-.The assessee also enclosed the account copy of the assessee in respect of the capital acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure was accounted in the regular books of accounts and the assessments for the assessment years 2006-07 and 2007-08 are unabated and completed. The completed assessments cannot be inferred with the regular books of accounts while making the assessments u/s 153A. Reassessment u/s 153A is possible in unabated assessments only with the incriminating material found during the course of search. If no new material is unearthed during the course of search revision u/s 263 is not permissible in the case of completed assessments on the basis of entries made in the regular boos of accounts. For any omission or commission resulting under assessment should be considered in regular assessments but not in search assessments. This view is supported by the decision of Hon‟ble ITAT,Delhi Tribunal in Mahesh Kumar Gupta vs.Commissioner of Income Tax, reported in 47CCH 0190. The coordinate bench in the decision cited supra in connection with the taxability of deemed dividend held as under: "The Clause (iv) above, the Hon‟ble High Court held that "obviously an assessment has to be made under this Section only on the basis of seized material". In clause (v), the same is reiterate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome in the assessment completed u/s 143(3) r.w.s. 153A. Hence the Ld.CIT(A) taken up the case for revision and held that non admission of income as declared u/s 132(A) and not making the addition of additional income as declared by the assessee amounts to erroneous and prejudicial to the interest of revenue and accordingly issued the show cause notice and passed the order under section 263 setting aside the assessment orders passed u/s 143(3) r.w.s. 153A directing the AO to reexamine the issue and decide the matter after making the necessary enquiries. 12.1. During the appeal hearing, the Ld.AR stated that the assessee filed the return of income admitting total income of Rs. 27,42,475/- (wrongly mentioned in the show cause notice at Rs. 29,35,282/-) and admitted the additional income of Rs. 17.00 lakhs during the search. Accordingly filed the revised return of income at Rs. 45,06,025/- which is inclusive of additional income admitted. The Ld.AR submitted that the Ld.CIT misunderstood the issue and taken up the case for revision. Referring to paper book page no.14, question No.13 of the statement recorded u/s 131 on 19.03.2010 stated that the assessee had admitted the additional in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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