TMI Blog2024 (4) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... the search team indicating that the assessee had any unaccounted income/investment/unaccounted money. Perusal of the assessment order shows that the ld. Assessing Officer has not referred to any incriminating material. He has merely acted upon the informations available in the audited balance sheet relating to unsecured loans taken and based on the post search enquiry/information from third parties have made the alleged additions We find that the ratio laid down by the Hon ble Apex Court in Abhisar Buildwell ( 2023 (4) TMI 1056 - SUPREME COURT] is squarely applicable on the facts of the instant case and, therefore, since the AY 2014-15 2015-16 are completed and unabated Assessment Years and no incriminating material was found for the allege ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as interest expense incurred on bogus unsecured loan. 3. The appellant craves the leave to add/modify/alter any or all the grounds during the course of hearing/pendency of appeal. 2(a) The revenue has raised the following grounds of appeal for Assessment Year 2015-16:- 1. That on the facts of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 90,00,000/- made u/s 68 of the IT Act, 1961 on account of unexplained cash credit received from shell/paper companies under the garb of unsecured loan. 2. That on the facts of the case and in law, Ld. CIT(A) has erred in deleting the addition/disallowance of Rs. 30,34,700/- claimed by the assessee as interest expense incurred on bogus unsecured loan. 3. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the assessee is a limited company and was subject to search u/s 132 of the Act on 29/01/2021. Subsequently, assessment year 2014-15 and 2015-16 were also selected for scrutiny as per the scheme of assessment applicable to the search cases. The assessee has been regularly filing the income tax return and for Assessment Year 2014-15 and 2015-16, regular return u/s 139(1) of the Act has been filed within the statutory time limit provided u/s 139(1) of the Act. However, both the assessment years were not selected for scrutiny as no notice u/s 143(2) of the Act was issued. As on the date of search i.e., 29/01/2021, Assessment Years 2014-15 and 2015-16 fall under the category of completed/unabated assessment years and addition for such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to subsection (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Commissioner. Therefore, the intention of the legislation seems to be that in case of search only the pending assessment/reassessment proceedings shall abate and the AO would assume the jurisdiction to assess or reassess the total income for the entire six years period/block assessment period. The int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in case of search even where no incriminating material is found during the course of search, even in case of unabated/completed assessment, the AO can assess or reassess the income/total income taking into consideration the other material is accepted, in that case, there will be two assessment orders, which shall not be permissible under the law. At the cost of repetition, it is observed that the assessment under Section 153A of the Act is linked with the search and requisition under Sections 132 and 132A of the Act. The object of Section 153A is to bring under tax the undisclosed income which is found during the course of search or pursuant to search or requisition. Therefore, only in a case where the undisclosed income is found on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sume 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 the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. However, the completed/unabated assessments can be re-opened by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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