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TMI Blog2023 (8) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... zure action the reassessment proceedings were also centralized along with assessment u/s 153A of the Act. The reassessment proceedings were completed on 19.02.2014 by DCIT (Central) Bhopal and thereafter the Pr. CIT (Central) Bhopal vide its order dated 3rd July 2015 passed u/s 127 of the Act transferred the case of the assessee to DCIT(Central) Jabalpur. The assessment u/s 153A r.w.s. 143(3) for the block period A.Y.2008-09 to A.Y.2013-14 was finalized by the DCIT (Central) Jabalpur on 15.03.3016. In the meantime the assessee preferred an appeal against the order passed u/s 143(3) r.w.s. 147 before the Ld. CIT(A), Bhopal. The hearing was attended by authorized representative of the assessee and the order was passed by the Ld. CIT(A) on 29.07.2019. The Ld. AR has further submitted that there were various proceedings scattered at various jurisdictions at different locations and there were more than one authorized representative attending the assessments and appeal proceedings at different places. This created a difficulty in communication and coordination between the assessee and the authorized representatives. He has thus pleaded that due to the fact that multiple assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case and in law, the impugned order passed u/s 147 r.w.s. 143(3) is in contravention of the provisions of sec. 153A which stipulate that the pending assessment proceedings on the date of initiation of search stand abated and hence the assessment is void- ab-initio. 2. The learned CIT(A) failed to appreciate that the reopening is unwarranted and is bad in law as no new tangible material came in the possession of the Assessing Officer so as to form a belief that income has escaped assessment. Further, the appellant had disclosed fully and truly all material facts necessary for the assessment, during the course of the assessment proceedings u/s 143(3). 3. The learned CIT(A) erred in upholding the reassessment which was framed without first disposing of the objections raised by the appellant challenging the reasons to believe. 4. The learned CIT(A) erred in upholding the denial of loss of Rs. 6,36,138/- from trading in shares / derivatives and addition of deemed gross profit on alleged suppressed sales amounting to Rs. 1,58,802/- 5. The learned CIT(A) failed to appreciate the fact that the loss from trading in shares and derivatives Rs. 6,36,138/- claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions as well as relevant material on record. The relevant facts emerging from records are that the original assessment in case of assessee for the assessment year 2008-09 was completed on 29.1.22010. Thereafter the assessment was reopened by the AO by issuing notice u/s 148 on 22.03.2013. Further, there was a search and seizure action u/s 132(1) of the Act in the case of the assessee on 16.05.2013. Thus, it is clear that on the date of search i.e. 16.05.2013 the reassessment proceedings initiated vide notice u/s 148 dated 22.03.2013 were pending. The reassessment proceedings were completed u/s 147 r.w.s. 143(3) on 19.02.2014 against which the assessee filed an appeal before the Ld. CIT(A). The notice u/s 153A was issued by the AO on 01.10.2015. In response to said notice the assessee filed return of income on 07.01.2016. The assessment order u/s 153A r.w.s. 143(3) was passed on 15.03.2016. Since appeal against the order passed u/s 147 r.w.s. 143(3) was pending before the Ld. CIT(A) which was decided by the Ld. CIT(A) vide impugned order dated 29th July 2019. The above stated facts are not in dispute and therefore it is clear that reassessment proceedings initiated vide notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017. Explanation 1.-For the purposes of this sub-section, the expression 'relevant assessment year" shall mean an assessment year preceding the assessment relevant to the previous year in which search is conducted or requisition is m which falls beyond six assessment years but not later than ten assessment yea from the end of the assessment year relevant to the previous year in which set is conducted or requisition is made. Explanation 2-For the purposes of the fourth proviso, "asset" shall include immovable property being land or building or both, shares and securities and advances, deposits in bank account.] 8. There is no quarrel on the point that the pending assessment as on the date of search got abated and the jurisdiction of the AO to make original assessment and assessment u/s 153A merges into one. As per the new/amended regime of block assessment u/s 153A only one assessment shall be made separately for each of the six assessment years on the basis of the findings of search and any other material existing or brought on record of the AO. The assessments or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently only one assessment shall be made on the basis of the finding of the search and any other material existing or brought on record of the AO. This proposition has been confirmed by the Hon'ble Supreme Court in case of Pr. CIT vs. Abhisar Buildwell Pvt. Ltd. 149 taxman.com 399 in para 11 to 14 as under: 11. As per the provisions of Section 153A, in case of a search under Section 132 or requisition under Section 132A, the AO gets the jurisdiction to assess or reassess the 'total income' in respect of each assessment year falling within six assessment years. However, it is required to be noted that as per the second proviso to Section 153A, the assessment or re-assessment, if any, relating to any assessment year falling within the period of six assessment years pending on the date of initiation of the search under Section 132 or making of requisition under Section 132A, as the case may be, shall abate. As per sub-section (2) of Section 153A, if any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, it is observed that the assessment under Section 153A of the Act is linked with the search and requisition under Sections 132 and 132A of the Act. The object of Section 153A is to bring under tax the undisclosed income which is found during the course of search or pursuant to search or requisition. Therefore, only in a case where the undisclosed income is found on the basis of incriminating material, the AO would assume the jurisdiction to assess or reassess the total income for the entire six years block assessment period even in case of completed/unabated assessment. As per the second proviso to Section 153A, only pending assessment/reassessment shall stand abated and the AO would assume the jurisdiction with respect to such abated assessments. It does not provide that all completed/unabated assessments shall abate. If the submission on behalf of the Revenue is accepted, in that case, second proviso to section 153A and sub- section (2) of Section 153A would be redundant and/or re- writing the said provisions, which is not permissible under the law. 13. For the reasons stated hereinabove, we are in complete agreement with the view taken by the Delhi High Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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