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2020 (5) TMI 108 - AT - Income TaxAssessment u/s 153A - determination of undisclosed income - HELD THAT:- Hon’ble Rajasthan High Court in the case of Jai Steel India vs. ACIT [2013 (6) TMI 161 - RAJASTHAN HIGH COURT] has categorically held that the reassessment of the total income of the completed assessments have to be made taking note of the undisclosed income, if any, unearthed during the search and the income that escaped assessments are required to be clubbed together with the total income determined in the original assessment and assessed as the total income. The observations made in the judgment contrasting the provisions of determination of undisclosed income under Chapter XIVB with determination of total income under Sections 153A to 153C have to be read in the context of second proviso only, which deals with the pending assessment/reassessment proceedings. Observations made in the context of de novo assessment proceedings also have to be read in context that irrespective of the fact whether any incriminating material is found during the course of search, the Assessing Officer is empowered to issue warrant and consequential assessment u/s 153A have to be undertaken. Section 153A proceedings were validly undertaken by the revenue authorities. Bogus share application money - The entries in the incriminating documents seized during the search and mentioned in the assessment order are not specifically adjudicated by the Ld. CIT (A). Furthermore, the observations of ld. CIT (A) that the assessee has furnished all the confirmations and details regarding share capital / share premium are not adjudicated in the light of incriminating materials appearing / mentioned in the assessment order. The assessment order clearly states that the assessee failed to prove the identity, genuineness and creditworthiness of the investors. In view of the above discrepancies found in the order of the CIT(A), we deem it fit and proper to set-aside such incomplete and cryptic order of the ld. CIT(A) and restore the matter back to his file to take due cognizance of all the specific evidences mentioned in the assessment order and pass a reasoned and speaking order. Accordingly, the grounds in Cross Objection by the assessee on merits are therefore restored to the file of the ld. CIT(A) as indicated hereinabove and the appeal of the Revenue is allowed for statistical purposes.
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