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TMI Blog2018 (8) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter, the assessment cannot embrace any fresh disallowance otherwise than that supported by any incriminating material found during the course of search. - Decided in favor of asssessee. - ITA No.4748/Del/2016 - - - Dated:- 17-8-2018 - SHRI R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Shri. D.C. Aggarwal, Adv For The Department : Shri. Atiq Ahmed, Sr. DR ORDER PER R.S. SYAL, VICE-PRESIDENT : This appeal by the assessee arises out of the order passed by the CIT(A) on 31.3.2016 in relation to the assessment year 2007-08. 2. The only issue raised in this appeal is against the confirmation of addition made by the Assessing Officer for a sum of ₹ 24 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rove the genuineness of the credits. 5. The Hon'ble jurisdictional High Court in the case of Kabul Chawla vs. CIT (2016) 380 ITR 573 (Del) considered the facts of a case in which a search was carried out u/s 132 on 15.11.2007 on BPTP Ltd., a leading real estate developer operating all over India and some of its group companies including the premises of the assessee, who owned and controlled the group. No assessment proceedings were pending for the assessment years 2002-03, 2005-06 and 2006-07 as on the date of the search. The assessments for such assessments years had already been made u/s 143(1) of the Act. The assessee filed returns for the three years declaring certain income. The assessments were completed u/s 153A for the conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atio of the above judgment that once a search takes place u/s 132 of the Act, the assessee is obliged to file returns for the six assessment years immediately preceding the previous year relevant to the assessment year in which the search took place. In so far as the completed assessments as on the date of the search are concerned, the same are to be repeated as increased by additions, only if, based on incriminating material found during the course of search. In other words, if no incriminating material is found during the course of search, then, the amount of total income determined under the earlier completed assessments is to be adopted in a fresh assessments u/s 153A without making any further addition. 7. Adverting to the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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