9911796707
TMI Blog2019 (4) TMI 1527X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (A) has erred in dismissing the legal ground raised by the assessee that in the absence of incriminating material, if any, unearthed during the course of search initiation of assessment proceedings u/s 153A is not maintainable and the assessment made by the AO is beyond the scope of section 153A of the Act. Consequently, legal ground raised by the assessee is determined in favour of the assessees/respondents. - Decided against revenue. - ITA No.5223/Del./2015, ITA No.5224/Del./2015, ITA No.5225/Del./2015 - - - Dated:- 24-4-2019 - Shri R.K. Panda, Accountant Member And Shri Kuldip Singh, Judicial Member For the ASSESSEE : Shri Salil Aggarwal, Advocate, Shri Shailesh Gupta, Advocate And Shri Madhur Aggarwal, Advocate For the REVENUE : Ms. Pratima M. Biswas, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in the aforesaid appeals, the same are being disposed off by way of composite order to avoid repetition of discussion. 2. The Appellant, ACIT, Central Circle 13, New Delhi (hereinafter referred to as the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) who has partly allowed the same. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeals. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Assessee by filing applications under Rule 27 of the Incometax Appellate Tribunal Rules, 1963 (for short the Rules ) in all the aforesaid appeals sought to raise legal ground as under :- That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in overlooking the basic fact that the incriminating material was found during the course of search and the assessment as contemplated under section 153 is not a de novo assessment and as such, the additions so made by assessing officer are beyond the scope of assessment under section 153A of the Act and are liable to be deleted in totality . on the grounds inter alia that while deciding the appeals, the ld. CIT (A) has upheld the initiation of proceedings u/s 153A of the Act, however delet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is also not in dispute that the assessments in this case was completed u/s 147/143(3) of the Act vide order dated 23.04.2010 much prior to the search conducted in this case on 10.01.2012 as has been discussed by the ld. CIT (A) at page 4 and 5 of the impugned order. It is also not in dispute that no incriminating material qua the assessee in question has come on record. It is also not in dispute that as per order passed by the AO u/s 147/143(3) of the Act dated 23.04.2010 that genuineness of the share capital of the assessee was duly examined and no addition has been made by returning following findings :- During the Financial year 2007-08, the authorized capital of the assessee company was raised from ₹ 4,55,00,000/- to ₹ 50,500,000/- and the assessee enhanced its paid up share capital by ₹ 50,00,000/- from ₹ 4,54,08,000/- to ₹ 5,04,08,000/-. Along with this enhancement in its paid up share capital, the share premium of the assessee company increased by ₹ 4,50,00,000/- from ₹ 15,99,39,000/- to ₹ 20,49,39,000/-. Inquiries were conducted with the fresh shareholders of the assessee company by issuin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s immediately preceding the previous year relevant to the AY in which 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 strictly made on the basis of evidence found in the course of the search, or other postsearch material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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