Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1549 - AT - Income TaxValidity of order passed u/s.153A - deduction claimed originally and allowed in original order u/s.143(3) of the Act and not related to any incriminating material found during action u/s.132 - whether in respect of unabated assessments (no pending proceedings) as on the date of search, the AO could frame the search assessment u/s 153A of the Act by making certain additions without any incriminating materials found during the course of search? - HELD THAT:- The scheme of the Act provides for abatement of pending proceedings as on date of search. It is not in dispute that the assessment for the assessment year 2005-06 and 2006-07 falls under the ambit of unabated assessment as on the date of search. There is no differentiation as found in the intent of the legislature to discriminate whether the assessments were originally framed u/s 143(1) or 143(3) or 147 - if any incriminating material is not found during the course of search related to those concluded years, the Act does not confer any power to the Ld. AO to disturb the finding given thereon and income determined thereon as finality has already been reached and no proceeding was pending on the date of search. Once the proceeding u/s 153A of the Act is initiated which are special proceedings, the legislature provides different treatments for abated and unabated assessments. However, in respect of unabated assessments the legislature has conferred powers on the Ld. AO to just follow the assessments already concluded unless incriminating materials are found in the course of search. For the reasons stated above and on basis of various judicial pronouncements, we hold that the various disallowances made for the Assessment years i.e. 2005-05 and 2006-07 which were unabated/concluded assessments as on date of search cannot be made in the search assessments in the absence of any incriminating material found in the course of search and accordingly all those additions are directed to be deleted. - Decided in favour of assessee.
|