2017 (2) TMI 1212 - DELHI HIGH COURT

Validity of assessment u/s 153A/153C - additions to income - as per revenue none of the provisions confine the enquiry of the AO to evaluating incriminating materials - Held that:- We could not found that there is any incriminating material referred by the AO which is found during the course of search for making these additions.

The non-obstante clause, in the opinion of the Court, was necessary, given that there is a departure from the pre-existing provisions, which applied for the previous years and had a different structure where two sets of assessment orders were made by the AO during block periods. With the unification of assessment years for the block period, i.e. only one assessment order for each year in the block period, it was necessary for an overriding provision of the kind actually adopted in Section 153A. But for such a non-obstante clause, the Revenue could possibly have faced hurdles in regard to unadopted/current assessment years as well as reassessment proceedings pending at the time of the search in respect of which proceedings were to be completed under Sections 153A/153C. - Decided against revenue