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TMI Blog2023 (6) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... dition denying the claim of exemption u/s 10(38) - whether any interference could be made with the concluded assessments while assessing the income under section 153A of the Act, when no incriminating material was found? - HELD THAT:- As decided in ABHISAR BUILDWELL P. LTD. [ 2023 (4) TMI 1056 - SUPREME COURT] in complete agreement with KABUL CHAWLA [ 2015 (9) TMI 80 - DELHI HIGH COURT] no addition can be made in respect of the completed assessments in absence of any incriminating material. Thus we hold that since no incriminating material found in the case of assessee for the assessment year 2013-14, the concluded assessment cannot be disturbed and the addition made by Assessing Officer and sustained by the learned CIT(A) cannot be up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and it attained finality. 3. Subsequently, search and seizure operation under section 132 of the Act was conducted in the case of assessee along with various entities, namely, Ravi Foods Pvt. Ltd., and others on 15/11/2018. Having issued notice under section 153A of the Act and considered the return of income filed in response thereto, learned Assessing Officer completed the assessment under section 143(3) read with section 153A of the Act by making addition of Rs. 4,39,139/- by denying the claim of exemption under section 10(38) of the Act. 4. Aggrieved thereby, the assessee preferred appeal before the CIT(A) and, among other things, argued that there was no incriminating material relevant to the matter on the issue pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out any discretion or judgment and the learned Assessing Officer is empowered and rather obliged to make additions as a regular assessment also while completing the assessment proceedings. On this premise, learned CIT(A) dismissed the appeal. 6. Assessee, therefore, preferred this appeal on many grounds, but the main plank of argument of the learned AR is that when there is no incriminating material found during the search in case of a concluded assessment, no addition could be made. According to him, authorities below failed to appreciate the difference between the abated and un-abated assessments and the well settled principle under section 153A of the Act that jurisdiction to make assessment for a concluded assessment is limited, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td., Civil Appeal No. 1969 of 2011, 08/02/2018 (SC), Anandtex International P. Ltd., vs. ACIT, ITA No. 2476/Del/2018, dt. 24/02/2022. 8. We have gone through the record in the light of the submissions made on either side. Insofar as the facts and figures are concerned, there is not much dispute. The return of income filed by the assessee for the assessment year 2013-14 on 27/07/2013 was processed under section 143(1) of the Act and notice under section 143(2) of the Act was never issued. By the date of search on 15/11/2018, four years elapsed after the last date for issuance of notice under section 143(2) of the Act in this case. It is also not the case of the Revenue that any incriminating material was found during the search that was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d abated; iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the total income taking into consideration the incriminating material unearthed during the search and the other material available with the AO including the income declared in the returns; and iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In this case also, facts are similar to the above cases, except that in the assessment under section 143(3) read with section 153A of the Act, the learned Assessing Officer did not make any addition and accepted the returned income subsequent to the issuance of notice under section 153A of the Act. Thereupon the PCIT revised the assessment order under section 263 of the Act on 04/01/2022 on the ground that the learned Assessing Officer should have disallowed the exemption under section 10(38) of the Act on par with the other above assessees which the assessee challenged in this appeal. All other facts being identical with the facts of the other above persons, we hold that the same ratio applies to this case also and the learned Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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