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2013 (10) TMI 774 - ITAT HYDERABADScope of assessment u/s 153C of the Income Tax Act – Held that:- Determination of income consequent to search action by framing assessment u/s. 143(3) r.w.s. 153C of the Act is different from regular assessment and it is not a substitute for regular assessment. Being so, the Assessing Officer shall frame the assessment on the basis of incriminating material found during the course of search action u/s. 132 of the Act and other material gathered subsequent to search action. In the present case, unable to appreciate on the basis on which seized material the AO came to the conclusion that the assessee has not earned agricultural income - It is appropriate to remit the issue back to the file of the AO to specify the basis on which seized material or material collected consequent to search action was used for the purpose of framing assessment. While framing the assessment he has to consider the judgement of jurisdictional High Court in the case of Gopal Lal Bhadruka, Avadesh Bhadurka and Ahura Holdings vs. DCIT [2012 (6) TMI 657 - ANDHRA PRADESH HIGH COURT], wherein the Hon'ble High Court observed that, "Sections 153A, 153B and 153C were inserted in the Income-tax Act, 1961, with effect from June 1, 2003, in Chapter XlV. These sections are applicable to search operations or requisitions made after May 31, 2003. Simultaneously section 158BI was inserted in Chapter XIV-B. By virtue of section 158BI of the Act, the various provisions of Chapter XIV-B of the Act are made inapplicable to proceedings under sections 153A and 153C of the Act. The effect of this is that while the provisions of Chapter XIV -B of the Act limit the inquiry by the Assessing Officer to those materials found during the search and seizure operation, no such limitation is found in so far as sections 153A and 153C of the Act are concerned. Therefore, it follows that for the purposes of sections 153A and 153C of the Act, the Assessing Officer can take into consideration material other than what was available during the search and seizure operation for making an assessment of the undisclosed income of the assessee" and decide the matter in accordance with law. Due payment of admitted tax by the assessee for assessment year – Held that:- The CIT(A) without pointing out the non-payment of admitted tax to the assessee is not justified in dismissing the appeal of the assessee in limine. Accordingly, remitted the entire issue back to the file of the CIT(A) to decide the issue raised by the assessee in his appeal on merit.
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