TMI Blog2011 (11) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... by Shri A.N. Mahajan, learned counsel for the department. Shri Ashish Bansal appears for the assessee. 2. The Commissioner of Income Tax (Central), Kanpur has preferred this appeal under Section 260A of the Income Tax Act, 1961 (the Act) against the order of the Income Tax Appellate Tribunal "B" Bench, Lucknow dated 31.10.2007 in ITA No.801/Luc/2006 (Assessment Year 2002-03) by which it had allowing the appeal for statistical purposes and has held that irrespective of any material discovered in search under Section 132 of the Income Tax Act, 1961 (the Act), relating to any period, an assessment is required to be made for block period of six assessment years, and consequently, the assessments, which have been completed, are also liable to be restored to the file of the Assessing Officer to consider the additions in the assessments under Section 153 A, as well. The Tribunal further observed that in the event the search is declared illegal by any Court, or assessment under Section 153A is held invalid, the appeal in relation to regular assessment will revive at the instance of the department, on an application to the Tribunal. 3. The appeal was admitted on the questions of law as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent appeal arises out of the assessment made prior to the date of the search. The intention of the legislature is to make a combined assessment of all the income disclosed or assessed in regular assessment and discovered in search. We accordingly restore the assessment to the file of the Assessing Officer to consider these additions in the assessment u/s 153A as well. However, in an event where search is declared illegal by any court or assessment u/s 153A is held invalid, then this appeal in relation to regular assessment will revive at the instance of the department if an application is moved to the Tribunal in this behalf. Accordingly, the appeal of the assessee is allowed but for statistical purposes and subject to the observations made above. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 31.10.2007." 9. Shri Bharat Ji Agrawal appearing for the department submits that the assessment was completed, the assessment order was passed on 31.3.2005. The appeal was also decided by CIT (A) on 22.5.2006 much before the initiation of search under Section 132 on 17.10.2006. The proceedings for assessment or rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum equal to- (a) in the case of a company, not being a company deemed for the purposes of Section 9 to be a firm, six per cent of the capital of the company on the first day of the said period computed in accordance with Schedule II, or one lakh of rupees, whichever is greater, or (b) in the case of a firm having- (i) nor more than two working partners, one lakh of rupees, or (ii) three working partners, one and a half of rupees, or (iii) four or more working partners, two lakh of rupees, or (c) in the case of a Hindu undivided family, two lakhs of rupees, or (d) in any other case, one lakh of rupees,- The same proportion as the said period bears to the period of one year and, in respect of any chargeable accounting period beginning after the 31st day of March, 1947, such sum as may be fixed by the annual Finance Act. [Business Profits Tax Act (21 of 1947), S.2 (1)] Removal or destruction, (as) of a nuisance; failure; premature end, suspension or diminution, (as) of an action or of a legacy. The action of abating; being abated. {O.XXII, R.1, CPC (5 of 1908)]; decrease [S.12 (3) (b) (i), Specific Relief Act (47 of 1963)]. Of An Action Or Suit: In civil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od includes any of the assessment year, the abatement of assessment and re-assessment proceedings, to give way to reassessment considering the additions in the assessment under Section 153A, will also include the assessment or re-assessment, which has been completed. If as a result of search, some undisclosed income is found to have escaped assessment, the Assessing Officer, may initiate steps for reassessment after sanction of competent authority, within the prescribed period of limitation. 17. A Circular No.7 of 2003 dated 5.9.2003 issued by the Commissioner of Income Tax has clarified the position in para 65.5 as follows:- "The Assessing Officer shall assess or reassess the total income of each of these six assessment years. Assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years pending on the date of initiation of the search under section 132 or requisition under section 132A, as the case may be, shall abate. It is clarified that the appeal, revision or rectification proceedings pending on the date of initiation of search under section 132 or requisition shall not abate. Save as otherwise provided in the propose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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