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TMI Blog2023 (11) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... r to be covered by the decision of the Supreme Court in the case of Pr. CIT Vs Abhisar Buildwell P. Ltd [ 2023 (4) TMI 1056 - SUPREME COURT] wherein held no addition can be made in respect of completed assessment in absence of any incriminating material. Assessee appeal allowed. - Dr. B.R.R. Kumar, Accountant Member And And Shri Yogesh Kumar U.S., Judicial Member For the Appellant : Shri Pawan Ved, Advocate. For the Respondent : Smt. Garima Chaudhary, CIT (D.R.). ORDER U/S 255(4) OF THE I.T. ACT PER YOGESH KUMAR U.S.:J.M. The Hon'ble President of the Tribunal has referred the above appeals in I.T.A No. 49/JAB/2018 and I.T.A. No.50/JAB/2018 (assessment year 1014- 15) u/s 255(4) of the I.T. Act (hereinafter referred to as the Act ) to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable at the normal rate; that therefore, Section 153A came to be inserted and brought on the Statute; that under the Section 153A regime, the intention of the legislation was to do away with the scheme of two parallel assessments and tax the undisclosed income too at the normal rate of tax, as against at any special rate; that thus, after introduction of Section 153A and in case of search, there shall be block assessment for six years; that search assessments/block assessments under Section 153A are triggered by conducting of a valid search under Section 132 of the Act, 1961; that the very purpose of search, which is a prerequisite/trigger for invoking the provisions of sections 153A/153C is detection of undisclosed income by undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 assessment or reassessment relating to any assessment year which has abated under the second proviso to sub- section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Commissioner; that therefore, the intention of the legislation seems to be that in case of search only the pending assessment/reassessment proceedings shall abate and the AO would assume the jurisdiction to assess or reassess the total income for the entire six years period/block assessment period; that the intention does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f search even where no incriminating material is found during the course of search, even in case of unabated/completed assessment, the AO can assess or reassess the income/total income taking into consideration the other material, is accepted, in that case, there will be two assessment orders, which shall not be permissible under the law; that the assessment under Section 153A of the Act is linked with the search and requisition under Sections 132 and 132A of the Act; that 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; that therefore, only in a case where the undisclosed income is found on the basis of incriminating material, the AO wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 search under Section 132 or requisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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