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TMI Blog2022 (8) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-8-2022 - HON BLE MR. JUSTICE P.S. DINESH KUMAR AND HON BLE MRS. JUSTICE M.G. UMA APPELLANT (BY SHRI. S. ANNAMALAI, ADVOCATE FOR SHRI. M. LAVA, ADVOCATE) RESPONDENT (BY SHRI. K.V. ARAVIND, ADVOCATE) JUDGMENT P.S. DINESH KUMAR J, This appeal by the assessee has been admitted to consider the questions of law framed by the assessee. However, after hearing learned Advocate for the parties, we are of the opinion that only the following question arises for consideration in this appeal: Whether the Tribunal was justified in law in not appreciating that there did not exist any incriminating material for issuing notice under section 153A of the Act and consequently the Tribunal ought to have quashed the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision in Canara Housing Development Company Vs. Deputy Commissioner of Income-tax, Central Circle-I(1) (2014) 49 Taxmann.com 98 (Karnataka), has allowed Revenue's appeal. He urged that it is settled position of law that no additions can be made in the absence of incriminating material in the assessment under Section 153A of the Act. Accordingly, he prayed for allowing this appeal. 5. Shri. Aravind, opposing the appeal placed strong reliance on Canara Housing and submitted that once the proceedings are initiated under Section 153A of the Act, the legal effect is, in case where the Assessment order is passed, it stands re-opened and in the eye of law there is no order of assessment. 6. Adverting to Section 153A of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the other person. Otherwise, a concluded assessment would be disturbed without there being any basis for doing so which is impermissible in law. Even in case of a searched person, the same reason would hold good as in case of any other person. As observed by us, detection or the existence of incriminating material is a must for disturbing the assessment already made and concluded. But, at the same time, such can be at three stages: one, at the stage when the re-assessment is initiated, the second, at the stage during the course of re-assessment and third, at a stage where the re-assessment is altered by a different assessment in respect of searched person or in respect of third party. In this regard, reference may be made to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost-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. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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