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TMI Blog2018 (5) TMI 2000X X X X Extracts X X X X X X X X Extracts X X X X ..... earned D.R. that the disputed disallowance under Section 14A r.w. Rule 8D was not on the basis of any incriminating material found as a result of search and seizure operation carried out in the case of the assessee. Rather, the AO on the basis of the audited accounts of the assessee has found out the investments made and proceeded to make the disallowance under Section 14A r.w. Rule 8D. In CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD., ALL CARGO GLOBAL LOGISTICS LTD. [ 2015 (5) TMI 656 - BOMBAY HIGH COURT] held where assessment proceeding was not pending on the date of search and seizure operation, the AO in a proceeding u/s 153A retains the power to assess or reassess income on the basis of incriminating material found as a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation. In pursuance to the search and seizure operation the AO initiated assessment proceedings under Section 153A of the Act by issuing notice under the said provision on 21.08.2013 calling upon the assessee to file his return of income for the impugned assessment year. In response to the said notice assessee filed his return of income on 31.01.2013 declaring total income at ₹ 95,83,189/-. During the assessment proceedings, on verifying the audited financial accounts of the assessee as well as the return of income, the AO found that, though, the assessee has made investments in exempt income yielding assets, however, it has not disallowed any expenditure under Section 14A of the Act r.w. Rule 8D of the I.T. Rules. Accordingly, af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have considered rival submissions and perused the material on record. The undisputed facts are, the assessee has filed its return of income under Section 139(1) of the Act on 30.09.2010 and the said return of income was processed under Section 143(1) of the Act on 02.05.2011. It is also not disputed that on the date of search and seizure operation on 12.10.2011 no assessment proceedings for the impugned assessment year was pending before the AO. Thus, it is not a case of abated assessment proceeding which has to be completed under Section 153A of the Act. It is neither denied nor disputed by the learned D.R. that the disputed disallowance under Section 14A r.w. Rule 8D was not on the basis of any incriminating material found as a resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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