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2014 (3) TMI 359 - AT - Income TaxJurisdiction of the AO – Order passed u/s 153A of the Act – Held that:- The jurisdiction of the AO in the assessment proceedings pursuant to a search is to assess the total income for each of the assessment years falling within the period of six years immediately preceding the assessment year relevant to the previous year in which the search is conducted or the requisition is made - Relying upon CIT vs. Anil Kumar Bhatia [2012 (8) TMI 368 - DELHI HIGH COURT] - there are no fetters on the power of the AO to assess any income that in his view forms part of the total income of the assessee for the relevant year/s, and would thus include the income as well, including as to its nature/character. Treatment of the loss - Derivative trading treated as a speculative loss – Held that:- There was conflict of judicial opinion, but for the reason that the A.O. has admittedly not altered either the nature or the quantum of addition as made in the regular assessment, since sustained in appeals - the assessment does not in law abate, and the AO has merely adopted the same in the section 153A assessment, the same ought to be reflected therein as such - an ‘addition’ in the section 153A assessment is thus inconsistent with the law in the facts of the case – thus, the contention of the assessee is accepted – and the AO is directed to modify the order – Decided Partly in favour of Assessee.
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