9911796707
TMI Blog2025 (2) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgement of Abhisar Buildwell [2023 (4) TMI 1056 - SUPREME COURT] we are of the opinion that no addition could be made in the hands of the assessee in the order passed u/s 153A in absence of any incriminating material. Accordingly, we direct to delete the additions made without referring to any incriminating material.
Liberty is granted to the AO to initiate reassessment proceedings u/s.147/148 of the Act as per law in case of completed/unabated assessment, if no incriminating material found during the course of search. Accordingly, the ground of appeal no. 1 of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ound thus the same is taken up first for consideration. 4. Before us, the Ld. AR argued that in this case the search u/s 132 of the Act was carried out on 13.05.2014 which was finally concluded on 1.07.2014. Ld.AR submits that when the search was conducted no proceedings were pending with respect to the assessment year under consideration as the return of income was filed on 02.02.2013 and the time limit for issue of notice u/s 143(2) was upto 30.09.2013 and no notice was issued u/s 143(2) in the case of assessee. Ld. AR further argued that from the perusal of the assessment order it is evident that not a single paper found as result of search was referred by the AO for making any additions and entire additions are solely based on the deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is concluded as under: i) that in case of search Under Section 132 or requisition Under Section 132A, the AO assumes the jurisdiction for block assessment Under Section 153A; ii) all pending assessments/reassessments shall stand 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act and consequently the additions under challenge in the captioned appeal requires to be quashed. In this view of the matter, we do not consider it necessary to adjudicate other legal and factual aspects concerning additions/disallowances." 5. Per contra ld. CIT-DR vehemently supported the order of the lower authorities and argued that in the case of the assessee, during the course of assessment proceedings assessee himself has accepted unaccounted sales on which GP rate was applied by the AO. Such additional sales were accepted by the assessee in his statement of affairs filed before the AO and the return was filed declaring income u/s 44AD of the Act. Ld. CIT-DR thus prayed that the assessment has rightly been completed u/s 153A r.w.s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee during the course of assessment proceedings without making reference to any information / evidence / document found in the course of search. As no incriminating material has been found in the course of search in the case of the assessee, no addition could be made in the assessment framed u/s.153A of the Act. The ld. CIT(A) in para 5.2.1 of the appellate order has also accepted the fact that no proceedings were pending as on the date of search with respect to the year under consideration however, solely for the reason that certain stock was found in excess at the time of search confirmed the action of AO, for which addition, if any, could only be made in the year of search. Further for the reason that assessee has shown additional s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
