9911796707
TMI Blog2019 (12) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts were unearthed during the search operation. On these facts, the ratio laid down by the Hon ble High Court of Delhi in the case of Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] squarely apply - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... mining the bank deposits and found that during the period 01.04.2004 to 31.03.2005, total deposits were to the tune of ₹ 12,16,399/-. Since gross receipts from the business activities were shown at ₹ 5,57,619/-, the Assessing Officer treated the difference of ₹ 6,58,780/- as unexplained bank deposit and accordingly, made the additions u/s 68 of the Act. 5. The assessee carried the matter before the ld. CIT(A) and vehemently contended that no incriminating material was found during the search conducted u/s 132 of the Act and additions made by the Assessing Officer have no reference to any such incriminating material found at the time of search, hence the additions made are beyond the scope of section 153A of the Act. 6. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been issued by 31.12.2006 for Assessment Year 2005-06 and by 31.03.2009 for Assessment Year 2006-07. Since the date of search and seizure operation is 20.11.2009, it can be safely concluded that since no notice was issued and served upon the assessee u/s 143(2) of the Act, assessment is complete. 10. In our considered opinion, the profit and loss account and balance sheet of the assessee company, by any stretch of imagination, cannot be considered as incriminating material. It is also not the case of the Revenue that the bank accounts were unearthed during the search operation. On these facts, the ratio laid down by the Hon'ble High Court of Delhi in the case of Kabul Chawla [supra], squarely apply wherein the Hon'ble High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was observed: "11. Section 153A (1) (b) provides for the assessment or reassessment of the total income of the six assessment years immediately preceding the assessment year relevant to the previous year in which the search took place. To repeat, there is no condition in this Section 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 Assessing Officer which can be related to the evidence found. This, however, does not mean that the assessment under Section 153A can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
