9911796707
TMI Blog2019 (12) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... t a search and seizure operation was conducted on K-World group of cases on 5.4.2012 and the assessee company was also a part of the search action. Pursuant to that search action, the case of the assesee was centralized, and, subsequently notice u/s 153A of the Income Tax Act, 1961 (hereinafter called 'the Act') was issued to the assessee requiring the assessee to submit its return of income. In pursuance to the said notice, the assessee filed its return of income declaring a net income of Rs. 84,740/- as against the original return of income which was filed at a total income of Rs. 74,831/-. 2.1 During the course of assessment proceedings u/s 153A of the Act, the Assessing Officer (AO) noted that the assessee has received share applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA vide order dated 1st February, 2018. 4.0 The Ld. CIT (DR) relied on the order of the AO and stated that the action of the Ld. CIT (A) in quashing the assessment order was not tenable. It was submitted that the judgment of Hon'ble Delhi High Court in the case of Kabul Chawla did not restrict the assessment to incriminating documents only. 5.0 We have heard both the rival contentions and have also and perused the relevant records available with us, especially the orders of the revenue authorities and the case law referred hereinabove. We find that the additions made by the AO are beyond the scope of section 153C of the Income Tax Act, 1961, because no incriminating material or evidence had been found during the course of search so as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 post-search 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
