Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 539 - AT - Income TaxAssessment u/s 153A - unabated assessments - incriminating material as found during the course of search proceedings or not? - HELD THAT:- We find that there is no dispute with regard to the facts that the Assessments relating to AY 2014-15, 2015-16, 2016-17 & 2017-18 fall under the category of “unabated assessments”. There is also no dispute that the department did not unearth any incriminating material relating to the additions of bogus purchases, bogus job works & labour charges, subcontracts payments, unexplained cash credits of loans and interest on loans and hence the AO, in the absence of any incriminating material relating to the above said additions, could not have made any addition in unabated assessment years. In support of the above said proposition, we rely upon the decision rendered in the case of Continental Corporation (Nhava Sheva) Ltd [2015 (5) TMI 656 - BOMBAY HIGH COURT] and Gurinder Singh Bawa [2015 (10) TMI 1761 - BOMBAY HIGH COURT] wherein held that the unabated assessments (finalized assessments) cannot be touched by resorting to the provisions of sec.153A unless some incriminating materials relating to the said assessments, which are contrary to and/or not disclosed during regular assessment proceedings, are found. Whereas the provisions of sec.153A of the Act provide for issuing of notice u/s 153A of the Act for six assessment years immediately preceding the year of search and thereafter, the AO shall assess or reassess the total income for the above said six years. This section further provides that all pending assessment or re-assessment pending as on the date of search shall abate. Hence the assessments of the assessment years falling within the period of above said six years which are not pending, i.e., which have attained finality shall not abate. Assessments of such assessment years are called “unabated/completed/finalized” assessments. The question as to whether the AO is entitled to interfere with such kinds of unabated/completed/ finalized assessments or not without there being any incriminating material found during the course of search, was examined in the case of All Cargo Logistics Ltd [2012 (7) TMI 222 - ITAT MUMBAI(SB)] wherein it was held that the AO could interfere with the unabated/completed/finalized assessments only if the incriminating materials found during the course of search warrant such interference, meaning thereby, if the search action did not bring out any incriminating material, then the AO cannot disturb the completed assessments and he has to simply reiterate the earlier total income in the present assessment order. We also rely on the decision rendered by Hon’ble Delhi High Court in the case of CIT Vs Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] wherein identical view was expressed. We considering the facts and judicial decisions as discussed above are of the view that the CIT(A) has passed a reasoned and conclusive order. We do not find any infirmity in the order of the CIT(A) in quashing the assessment order and uphold the same and dismiss the grounds of appeal of the revenue.
|