Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 417 - AT - Income TaxAddition made towards share application money - assessments u/s 153A - unabated / concluded assessment - whether the addition could be framed u/s 153A in respect of a concluded proceeding without the existence of any incriminating materials found in the course of search? - Held that:- It is not in dispute that the assessment for the Asst Year 2010-11 was originally completed u/s 143(1) and the time limit for issuance of notice u/s 143(2) of the Act had expired and hence it falls under concluded proceeding as on the date of search. The legislature does not differentiate whether the assessments originally were framed u/s 143(1) or 143(3) or 147. Hence unless there is any incriminating material found during the course of search relatable to such concluded year, the statute does not confer any power on the AO to disturb the findings given thereon and income determined thereon, as finality had already been reached thereon, and such proceeding was not pending on the date of search to get itself abated. In respect of unabated assessments, the legislature had conferred powers on the AO to just follow the assessments already concluded unless there is an incriminating material found in the search to disturb the said concluded assessment. In our considered opinion, this would be the correct understanding of the provisions of section 153A as otherwise, the necessity of bifurcation of abated and unabated assessments in section 153A would become redundant and would lose its relevance. Hence the arguments advanced by the ld DR in this regard deserves to be dismissed. As there was absolutely no incriminating material found during the course of search in the instant case with regard to the issue of share capital, share premium except understanding the discovery of modus operandi of raising bogus share capital based on the certain statements recorded from entry operators in some cases in West Bengal. Since the issue is addressed on preliminary ground of absence of incriminating materials, we refrain to give our findings on the merits of the addition u/s 68 of the Act for the Asst Year 2010-11 - Decided in favour of assessee.
|