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TMI Blog2021 (12) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... uisition u/s.153A of the Act, completed assessments cannot be disturbed in the assessment framed u/s.153A. Also see CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD., ALL CARGO GLOBAL LOGISTICS LTD. [ 2015 (5) TMI 656 - BOMBAY HIGH COURT] and KABUL CHAWLA [ 2015 (9) TMI 80 - DELHI HIGH COURT] . The sum and substance of ratios laid down by various High Courts is that unabated/completed assessments cannot be disturbed in absence of any incriminating material found as a result of search. As assessments for assessment years 2011-12 to 2014-15 are unabated / completed. Further, no reference of any incriminating material found as result of search in respect of additions made by the Assessing Officer towards disallowance of interest u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It has been judicially settled by number of judgments delivered by various High Courts, the assumption of jurisdiction u/s 153A, requirement of undisclosed income is necessary. The disallowance of ₹ 9,07,513/- made by the AO without any incriminating materials which has been sustained by CIT (A) is bad in law. 3. In view of the above grounds and other submissions to be made at the time of appeal hearing, the disallowance of ₹ 9,07,513/- sustained by CIT(A) may be cancelled and justice rendered. 3. Brief facts of the case are that the assessee is a Chartered Accountant and has derived income from profession, income from other sources and agricultural income. The assessee is a Chairman of M/s. Pavai Varam Educational T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding decision of the Hon ble Kerala High Court in the case of E.N. Gopalkumar Vs. CIT (2016) 390 ITR 131 (Ker) rejected legal ground taken by the assessee challenging validity of assessments order passed u/s.153A of the Act by holding that once search took place, the Assessing Officer shall have power to assess total income including undisclosed income if any, found as a result of search for six assessment years immediately preceding the assessment year in which search took place. The learned CIT(A) had also confirmed additions made towards disallowance of interest for all assessment years on the ground that the assessee has failed to establish nexus between interest paid on various loans and professional income. He had also confirmed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating material was found with respect to additions made by the Assessing Officer towards disallowance of interest expenses u/s.37 of the Income Tax Act, 1961. It is also an admitted fact that there is no reference to any seized material / incriminating material in respect of assessment of income from other sources u/s.68 r.w.s 115BBE of the Act. It is well settled principles of law by the decisions of various Courts, including decision of the Hon'ble Supreme Court in the case of PCIT Vs. Meeta Gutgutia Prop. M/s. Ferns N Petals (supra) that in absence of incriminating material found as a result of search u/s.132 or requisition u/s.153A of the Act, completed assessments cannot be disturbed in the assessment framed u/s.153A of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 115BBE of the Income Tax Act, 1961. In absence of any incriminating material found as result of search, completed / unabated assessments cannot be disturbed to make additions towards income which was already disclosed in regular return filed for relevant assessment years. Therefore, we are of the considered view that additions made by the Assessing Officer towards disallowance of interest u/s.37 of the Act and further assessment of income from other sources u/s.68 r.w.s 115BBE of the Act cannot survive under law. Hence, we direct the Assessing Officer to delete additions made towards interest u/s.37 of the Act and assessment of income from other sources u/s.68 r.w.s. 115BBE of the Act for all assessment years. 9. In the result, appeals f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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