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TMI Blog2023 (7) TMI 1275X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal against the first order of ld. CIT(A) relating to original scrutiny assessment order dated 26.12.2017 and not in the present appeal, which has been filed against the subsequent order of ld. CIT(A), in the second appeal dated 22.06.2020 which was passed in the first appeal filed by the assessee against search assessment order dated 22.12.2019 passed u/s. 153A r.w.s. 143(3) of the Act. As neither the Assessing Officer has examined the issue of deduction u/s. 54F of the Act nor has made any addition or disallowance either u/s. 54F of the Act or under any provision of the Act, in the said search assessment order. Since in the original scrutiny assessment order u/s. 143(3) of the Act has been quashed by the ld. CIT(A) by passing first order, consequently returned income of assessee as per return of income u/s. 139(1) was accepted by the Department as there was no appeal against the said order before the Tribunal. In the second round of search litigation the returned income of assessee in the subsequent return filed response to notice u/s. 153A of the Act, was enhanced and thus the returned income increased. CIT(A) ignored the subsequent suo motto addition made by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as carried in the Sanjay Singhal Group of cases as well as in the case of assessee on 15.11.2017 for the F.Y. 2017-18. Notice u/s. 153A of the Act was issued and served the assessee on 12/27.03.2019.n During the course of search assessment proceedings under section 153A/143(3) of the I.T. Act, 1961 also, the A.O. computed the total income of assessee at Rs. 21,37,81,194/- vide order dated 22.12.2019 by adopting the original assessed income computed in the earlier scrutiny assessment order under section 143(3) of the I.T. Act, 1961 dated 26.12.2017 without making any further addition or disallowance or modifications. 2.2. Aggrieved by the said order of the A.O., passed under section 153A r.w.s. 143(3) of the I.T. Act, 1961 dated 22.12.2019, the assessee carried the matter in appeal before the Ld. CIT(A), who vide order dated 22.06.2020 allowed the appeal of assessee. Aggrieved by the said first appellate order dated 22.06.2020 of the ld. CIT(A) the revenue is now before this Tribunal in the extant appeal. 3. During the course of hearing, the Ld. D.R. strongly relied on the assessment order dated 22.12.2019 passed by the A.O. under section 153A r.w.s. 143(3) of the I.T. Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es to Rs. 18,38,28,500/- i.e., income as originally returned by the assessee. 5. The assessing officer has himself passed appeal effect order on 22/07/2020 whereby the assessed income has been computed at Rs. 18,38,28,500/- 6. The present appeal filed by the revenue and the grounds of appeal raised therein are infructuous and do not arise from the impugned order u/s 153A. The issue of disallowance of deduction us 54F could have not raised by the revenue only by the way of filing of appeal against the CIT(A) order relating to original assessment dated 26/12/2017. The issue of disallowance u/s 54F does not arise in the impugned assessment order u/s 153 A because in the assessment order W/s 153A, the assessing officer has neither examined the issue of deduction u/s 54F nor made any independent addition. The assessing officer has merely adopted the income as per original assessment order u/s 143(3). There was no ground of appeal before the CIT(A) relating to issue of disallowance w/s 54F of the Act. The CIT(A) has rightly decided the grounds which were raised before him 7. Since the original assessment order u/s 143(3) has been quashed and held to be null and void, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer by referring to the original assessment order dated 26.12.2017 observed that the Assessing Officer in said original assessment order made disallowance of deduction u/s. 54F of the Act amounting to Rs. 2,99,52,694/- and again assessed the income at Rs. 21,37,81,194/- 5.3 The assessee also filed another appeal before the Ld. CIT(A)-24, New Delhi against the search assessment order dated 22.12.2019 passed under section 153A r.w.s. 143(3) of the I.T. Act, 1961, who vide order dated 22.06.2020 allowed the first appeal of the assessee. The relevant observation of Ld. CIT(A) in para 5.5.2 5.5.3 of the said order reads as follows:- 5.5.2 In Ground No. 3, 4 and 5, the appellant has contended that the addition made by the assessing officer is not sustainable and Assessing Officer has erred in adopting the earlier assessed income under section 143(3) as assessed income u/s. 153A /143(3). 5.5.3 The assessment us 143(3) of the Act was completed at assessed income of Rs. 21,37,81,194/- by making addition on account of disallowance of deduction w/s 54F of Rs. 2,99,52,694/-. The appellant has filed separate appeal against this addition. Hence, the Assessing Officer is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 21,37,81,194/- as was assessed in the earlier/original scrutiny assessment order dated 26.12.2017. Thus the Assessing Officer, in the search assessment order has accepted the assessed income as per original scrutiny assessment order, without making any other independent addition or disallowance, assessed the income of assessee. 8. In view of foregoing discussion we are of the view that since in the impugned assessment order u/s. 153A of the Act, the Assessing Officer had not made any addition or disallowance and has impliedly accepted the earlier original assessment order u/s. 143(3) of the Act dated 26.12.2017, therefore the ld. CIT(A) rightly directed the Assessing Officer to adopt the income computed or assessed after appeal effect of the first appellate order dated 09.03.2020 in relation to said original scrutiny assessment order u/s. 143(3) of the Act dated 26.12.2017. Thus, the income after appeal effect in respect of original assessment order came to Rs. 18,38,28,500/- i.e. the income originally returned by the assessee in the return filed u/s.139(1) of the Act. 9. The present appeal of revenue and the grounds of appeal hesitated therein are thus infractuous and do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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