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TMI Blog2022 (8) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... explained investment made by the assessee. The ITAT concluded that no material was found during the course of search so as to indicate any unaccounted investment made by the assessee. The ITAT, therefore, determined that the Assessing Officer made the additions of the unaccounted investment merely on the basis of presumptions. ITAT, therefore, concluded that since no assessment was pending for the relevant assessment year 2010-11 on the date of search and no incriminating material was found during the course of search, the issue is covered in favour of the assessee by the judgment of this Court in the case of Commissioner of Income Tax vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] and Principal CIT vs. Meeta Gutgutia [ 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act ) on 8th July, 2015 at various residential and business premises. The said company is stated to be managed and controlled by Shri Madho Gopal Agarwal, Shri Raj Gopal Agarwal and Shri Gopal Agarwal. The statement of Shri Gopal Agarwal was recorded on 8th July, 2015 and the statement of Shri Madho Gopal Agarwal was recorded during post search inquiry. 3. Pursuant to the aforesaid search, notice under Section 153A of the Act was issued on 26th September, 2016 by the Assessing Officer and the same was duly served upon the assessee. In response, the assessee filed her Income Tax Return declaring income of Rs. 5,98,600/- on 2nd March, 2017. The Assessing Officer after making reference to the documents discovered during the raid, vide ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails mentioned in these papers rather post-search enquiries made by him during the regular course of assessment proceedings as in any other case taken up for scrutiny u/s 143(3) of I. T. Act. 5. The department preferred an appeal before the ITAT which was dismissed vide an order dated 6th October, 2020. 6. The ITAT concluded that the additions made by the Assessing Officer for the assessment year under consideration was not based on any incriminating material found during the course of search on 8th July, 2015. It held that the documents referred to by the Assessing Officer pertains to the period w.e.f. 1st April, 2010 to 31st March, 2011 which relate to the assessment year 2011-12 and not for the impugned assessment year 2010-11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any unaccounted investment made by the assessee. The ITAT, therefore, determined that the Assessing Officer made the additions of the unaccounted investment merely on the basis of presumptions. The ITAT while dismissing the appeal observed that in the group cases of ACIT vs. Madho Gopal Agarwal in ITA No. 6184/Del/2018 and ACIT vs. M/s Kapis Impex LLP in ITA No. 6180/Del/2018 the department s appeal had been dismissed by the ITAT vide its orders dated 13th January, 2020 and 30 th June, 2020. Upon inquiry from the learned counsel for the appellant, he stated that he has no instructions if any challenge has been laid by the department to the aforesaid orders ITAT passed in the case of ACIT vs. Madho Gopal Agarwal and ACIT vs. M/s Kapis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the 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 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 12. Though the judgment in Kabul Chawla (supra) has been challenged in connected matters and is pending before the Supreme Court, yet there is no stay of the said judgment till date. Accordingly, this Court finds no ground not to follow the said judgment. 13. Keeping in view the aforesaid, this Court is of the opinion that the question of law raised in present appeal has been settled by earlier Division Bench in Kabul Chawla (supra) and no incriminating documents or materials had been fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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